China’s Dyestuff Sector – Supply & Demand, 2011-2015

By China Dyestuff Industry Association

China maintained annual output of 770-920 kt dyestuffs during the Twelfth Five-Year Plan period (2011-2015), and over one third of the total output was exported (240-280 kt) on average. The annual import volume during the period was 30-40 kt, a drop of 3% from the Eleventh Five-Year Plan period (2006-2010). The apparent annual consumption of dyestuffs in China at the time was 560-680 kt. Judging from the apparent consumption, more than 70% of the dyestuffs made in China was used to satisfy domestic demand.
Figure 1 shows China’s production, foreign trade and apparent consumption of dyestuffs. Output and apparent consumption both increased year-on-year during 2011-2015. The export volume peaked in 2013 and then slid in 2014 and 2015 because of drastic demand shrinkage in both domestic and foreign markets. Output mirrored the export trend during 2011-2015, with very small deviations, but the import volume declined overall.
In 2015, China produced 1 145 kt of dyestuffs and pigments, basically the same as in 2014. The output of dyestuffs alone was 922 kt, up 0.5%. The output of organic pigments alone was 228 kt, down 1.7%. Table 1 shows the details.

Stable growth of export

China achieved stable growth of export during 2011-2015, averaging 1.0%. The average annual decline of organic pigments and products was 1.3%. The 2015 dyestuffs export volume was 253 kt. The 2015 export volume of organic pigments and products was 142 kt. Outstanding among dyestuffs and pigments, vat indigos and reactive dyes both maintained an average annual export growth of over 8%. The export volume of vat indigos increased from 21 kt in 2011 to 33 kt in 2015, with annual growth averaging close to 12.5%, fastest of all dyestuffs. Reactive dye export increased from 30 kt to 41 kt, the average annual growth being 8.4%.
Major export destinations of dyestuffs in China were mostly in Asia during 2011-2015. The top three were Korea, Indonesia and Taiwan. The respective volumes of dyestuffs exported to these three regions in 2015 were 32 kt, 29 kt and 22 kt. Exports to Vietnam and Bangladesh grew fastest. The respective volumes of dyestuffs exported to these two countries were 13 kt and 18 kt, with average annual growth of 15.4% and 13.2%.

Table 1   Dyestuff/pigment production in China, 2011-2015

Year    2011    2012    2013    2014    2015    Average growth (%)
Total output of dyestuffs and pigments (kt)    982    1 043    1 106    1 149    1 145    4.0
Output of dyestuffs (kt)    772    833    895    917    922    4.5
Output of organic pigments (kt)    210    210    211    232    228    2.1



Overall decline of import

The import volume of dyestuffs and organic pigments and products declined during 2011-2015. Their respective import volumes in 2015 were 31 kt and 17 kt, having declined 7.3% and 3.3% annually, on average. The import of reactive dyes and vat dyes basically maintained a double-digit annual decline. For example, the import volume of vat indigos was only 9 tons in 2015, the average annual drop being 64%.
During 2011-2015, major sources of dyestuffs imported to China included India, Taiwan and Thailand. In 2013, India ranked first, selling 9 698 tons to China. During the Eleventh Five-Year Plan period, Korea was the biggest source overall, but both the import volume and the import value declined in the early years of the Twelfth Five-Year Plan period. Among the top ten import sources in terms of volume, Mexico’s volume grew fastest, the growth of volume and the growth of its value reached 20% and 23.9%, respectively, but the volume imported was not big. Volumes imported from all other sources declined. Major sources of imported organic pigments and products during 2011-2015 included Korea, India and Taiwan province. The volume of organic pigments and products imported from Japan in recent years declined constantly; the average annual drop was more than 10%. The volume of organic pigments and products imported from Germany grew, with average annual growth of volume and value reaching 3.7% and 23.5%, respectively.

Conclusion

Demand for dyestuffs will fluctuate widely in 2016, and the domestic market will be the major target. The export of dyestuffs and pigments from China will see no robust rebound but will continue its slow growth overall.