Dyestuff and Organic Pigment Performed Stably in 2012

By Wang Lina and Kang Baoxiang, China Dyestuff Industry Association

China’s dyestuff industry generally remained stable in the early 2012, however, the development of the industry faced a lot of uncertain factors, including the declined or stagnated trade growth in foreign advanced countries, the slowdown of domestic market growth and increasing production cost. China’s dyestuff industry operated in tight and a more severe situation in the whole year of 2012. Since 2011, the growth of economic indexes in China’s dyestuff industry have slowed down and tended to be stable, and some enterprises have suffered a negative growth. There were uneven performances within the industry, the leading companies remained stable growth, while the small and medium enterprises suffered a hard situation and their export volume and profit-earning ability reduced.
   In the first half of 2012, influenced by the slowdown of domestic demand growth, the increased inflation pressures and the decreased investment, the domestic dyestuff market was in a difficult situation. In the second half of 2012, with the changes of economic environment at home and abroad, the production and dyestuff export improved considerably, driving China’s dyestuff industry to grow.
   China’s major dyestuff producing regions such as Zhejiang province, Jiangsu province, Shandong province and Shanghai municipality supported the performance of dyestuff in the nation. The output and export volume of dyestuffs in the four regions accounted for more than 90% of the national total. The industrial concentration degree has gradually increased, and anti-risk ability of large enterprises has improved significantly. It is expected that in 2013, China’s production and export of dyestuffs and organic pigments will remain a stable and low speed growth, and the domestic dyestuff industry will still face a severe situation. In this situation, the stimulating consumption policy in the nation will power the dyestuff industry. China’s dyestuff industry will enter into a period of slow and stable development.

1. Stable growth of the production

According to China Dyestuff Industry Association (CDIA), the total output of dyestuffs and organic pigments reached 1.043 million tons in 2012, up 6.4% year-on-year. China’s dyestuff and organic pigment players accomplished a combined industrial production value of RMB44.1 billion, rising 2.7% year on year. The sales revenue totaled RMB42.6 billion, an annual increase of 2.1%, and the total profits before tax reached RMB4.16 billion, up 1.5%. Of which, the output of dyestuffs reached 833 000 tons, up 7.9%, while the output of organic pigments was 210 000 tons, a flat with 2011. In 2012, China’s output of dyestuff intermediates reached 313 000 tons, a rise of 36.6% YoY. The economic indexes of China’s dyestuffs and organic pigments during 2008-2012 are listed in Table 1.
Table 1 Economic Indexes of China’s Dyestuffs and Organic Pigments 2008-2012 (billion RMB, kt)
Year    2008    2009    2010    2011    2012    YoY growth (%)
Production value    38.46    38.37    40.91    42.93    44.1    3.48
Sales revenue    38.24    35.65    39.55    41.72    42.6    2.74
Profit before tax    3.9    3.19    4.23    4.1    4.16    1.63
Output of dyestuffs    678    719    756    772    833    5.28
Output of organic pigments    185    182    224    210    210    3.22
Output of intermediates    135    203    215    229    313    23.40


2. Export

In 2012, China’s export amount and value of dyestuff had a year-on-year growth. In the context of the slowdown of European economy and the mild economic recovery in the United States, it is expected that in 2013, the foreign trade environment will be still uncertain. China’s foreign trade in 2013 will show a modest recovery and will not have a strong rebound.
   In 2012, exports of dyestuff had a slight growth. Export of organic pigments experienced a negative growth and that of fluorescent whitening agents and dyeing/printing assistants also declined year-on-year.
China exported 270 thousand tons of dyestuffs in 2012, up 10.8% year-on-year, valued at US$1.26 billion, up 6.5% from a year earlier.
   Meanwhile the nation exported 144 thousand tons of organic pigments and their products in last year, down 3.4% YoY, valued at US$1.11 billion, an annual drop of 6.2%.
   China exported 36 thousand tons of fluorescent whitening agents, down 4.1% YoY, and the export value was US$125 million, up 2.4% YoY.
   The country exported29 thousand tons of dyeing/printing assistants in 2012, down 5.2% YoY, valued at US$71.0 million, down 3.5% from the previous year.
   Among diversified dyestuffs and organic pigments, the export volume of vat dyes and sulfur dyes decreased greatly, annually down 15.6% and 24.4%, respectively. The export volume growth of reactive dyes was highest among various dyestuffs, being 30.6% YoY, and the growth of export value reached 26% YoY. The export volume of indigo increased 26.2% from a year earlier. The export volume of fluorescent whitening agents reduced 4.1% YoY, whereas the export value rose by 2.4% YoY. Both the export volume and value of dyeing/printing assistants declined considerably. China’s export of dyestuffs and organic pigments in 2012 is shown in Table 2.

Table 2 China’s Export of Dyestuffs and Organic Pigments in 2012
Variety    Amount (ton)    YoY growth (%)    Valuation (US$ million)    YoY growth (%)
Disperse dyes    112080    8.4    521    0.9
Acid dyes    19278    -5.4    101    -7.3
Basic dyes    15198    6.8    91    1.8
Direct dyes     14624    10.0    43    8.6
Reactive dyes     39023    30.6    188    26.0
Vat dyes    6095    -15.6    81    -18.6
Indigo    26098    26.2    129    28.9
Sulfur dyes     3911    -24.4    9    -0.1
Sulfur black    31298    14.5    47    15.4
Other dyes    2116    12.2    42    87.2
Total of dyestuffs    269726    10.8    1257    6.5
Organic pigments    144485    -3.4    1111    -6.2
Fluorescent whitening agents    36364    -4.1    125    2.4
Dyeing/printing assistants    28878    -5.2    71    -3.5
   
   From the import situation of dyestuffs and organic pigments, all dyestuff and organic pigment varieties witnessed a negative growth in imports. The import volume of sulfur black and indigo plummeted 57.7% and 23.1% YoY respectively. The import volume of other dyestuffs like disperse dyes, acid dyes, vat dyes and basic dyes suffered more than two-digit reduction. The import volume of fluorescent whitening agents increased 1.9% year-on-year, but the export value declined by 10.4%. China’s import of dyestuffs and organic pigments in 2012 is listed in Table 3.
   
Table 3 China’s Import of Dyestuffs and Organic Pigments in 2012
Variety    Amount (ton)    YoY growth (%)    Valuation (US$ million)    YoY growth (%)
Disperse dyes    1864    -16.7    27    -4.8
Acid dyes    10912    -13.5    98    -13.7
Basic dyes    695    -20.9    9    -21.8
Direct dyes    2782    -2.0    20    -9.9
Reactive dyes    16128    -11.8    122    -8.6
Vat dyes    576    -13.3    10    -3.2
Indigo    409    -23.1    0.99    -36.3
Sulfur dyes    642    -0.2    4    19.7
Sulfur black    178    -57.7    1.0    -6.9
Other dyes    2486    -9.9    46    -17.3
Total of dyestuffs    36678    -12.4    341    -11.3
Organic pigments    17597    -8.2    249    1.3
Fluorescent whitening agents    7051    1.9    25    -10.4
Dyeing/printing assistants    59026    -9.9    228    -14.7


3. The uncertain factors in export market

China’s dyestuff industry witnessed a slight growth in output, sales, exports in 2012. The output, sales, exports of organic pigments as well as their products had a slight drop in last year. Considering uncertainties and complications in the international markets, and the slack demand under the pressure of inflation, China’s dyestuff industry will face big challenges in future. It is expected that in 2003, the export market of dyestuffs and organic pigments will still be uncertain and show a modest recovery. If the demand in the Europe and the United States has no substantial recovery, the pattern of weak export growth of dyestuffs and organic pigments in China will not change. The global economy is facing a long-term adjustment, the transformation of economic structure cannot accomplish at one stroke, and due to the global shortage of effective demand, the low growth pattern of China’s export of dyestuffs and pigments will continue for a long period of time. It is expected that in 2013, China’s export situation of dyestuffs will be slightly better than that in 2012. On one hand, enterprises should continue to maintain the stable development of foreign trade; on the other hand, they should persist in the strategy of expanding markets in the world, at the same time deepen the regional economic and trade cooperation, and reduce the transaction cost. Meanwhile the domestic enterprises need to strengthen R&D abilities, cultivate the independent brand, adjust the export structure and open up a new market to enhance their competitiveness.