Economics of China’s Dyestuff & Pigment Sector, 2016

By China Dyestuff Industry Association

According to statistics of China Dyestuff Industry Association, 1 162kt of dyestuffs and pigments were produced in 2016, up 1.5% YoY. Gross industrial output value was RMB59.85 billion, up 2.3% YoY. Product sales revenue was RMB53.18 billion, up 0.9%. The total profit and tax was RMB8.31 billion, down 8.7%. The output of dyestuffs was 928kt, up 0.6%. The output of organic pigments was 234kt, up 2.6%. The output of dyestuff/pigment intermediates was 324kt, up 1.3%. Table 1, Figure 1 and Figure 2 show the major economic indices of dyestuffs and organic pigments in China during 2012-2016.

Production of dyestuffs

Dyestuff output in China was stable overall in 2016. Disperse dyes and reactive dyes were produced and exported in greater volumes than other types, and fewer companies were involved, proportionally, than the case for the other types. After a drastic increase in both output and prices in the previous two years, the overall situation of reactive dyes stabilized in 2016. Figure 3 shows the outputs of various types of dyestuffs in the past five years.

Export of dyestuffs/pigments, fluorescent whitening agents and dyeing/printing auxiliary

Customs data show that 260kt of dyestuffs was exported during 2016, an increase of 3.5% over the previous year. The export value was US$1.42 billion, dropping 8.5%. Both the volume and value of fluorescent whitening agents and dyeing/printing auxiliary were much higher than in the previous year. Volume grew 10.6% for fluorescent whitening agents and 11.3% for dyeing/printing auxiliary. Obviously, the sectors’ export performance improved overall. Figure 4 shows the import/export volumes and values of the last five years.
Nearly 30% of China’s total dyestuffs output is exported, making the sector very dependent on the international market. In 2016, export of most varieties increased, with disperse dyes, indigos and sulfur dyes increasing considerably. However, smaller quantities of acid dyes and reactive dyes were exported than in the previous year. Table 2 shows the details.
After sustained growth for several consecutive years, China’s export of dyestuffs shrank for two years running in 2014 and 2015. It gradually regained slow growth in March 2016. No brisk recovery is expected in 2017.
(1) Monthly export of dyestuffs, 2016
Customs data show that the interruption of production during the G20 Summit reduced the overall 2016 performance of the dyestuff sector in Jiangsu and Zhejiang. The customary seasonal demand of August-September was released earlier. So export data of the second and third quarters differ sharply. Export activity declined in the fourth quarter. Table 3 shows the details.
Dyestuff export destinations for 2016 numbered 111, according to customs data, being three fewer than in the previous year. The volume exported to Korea has been greatest for several consecutive years; in 2016, it was 0.2% higher than in 2015, but the total value was down 8.4%. The volume exported to Brazil increased drastically, reaching 55.2%, the greatest increase among the top 10 destinations. The volumes going to both Thailand and India also grew considerably, but the total value declined. The combined volume exported to the top 10 destinations in 2016 was 189kt, accounting for 72.7% of the total, and the value was US$920 million, or 64.8% of the total. Table 4 shows the details.
(2) Monthly export of organic pigments & products, 2016
The export of organic pigments and products in China grew a little in 2016. According to customs data, it was 145kt, up 2.1% YoY. The total value was US$1.04 billion, a drop of 5.1%. The monthly export volume fell farthest in February, down 20.4% YoY. The growth of monthly export volume was greatest in August, reaching 20.6%. Table 5 shows the details.
Export destinations for organic pigments and products during 2016 numbered 142, five fewer than in the previous year, according to customs. The top three were the same as in the previous year, but the volumes sent to them declined in each case. Netherlands’ consumption declined most: 8.6%. On the other hand, the volume exported to Belgium grew 15.7%, the volume for India was up 18.5%, and the volume sent to Germany was up 31.2%. Still, the overall trend in 2016 was a year-on-year decline. The volume of organic pigments and products exported to the top 10 destinations of 2016 totaled 84kt, accounting for 57.9% of the total, and the total value was US$630 million, or 60% of the total. Table 6 shows the details.

Table 1  Economic indices, dyestuffs & organic pigments, 2012-2016

Year    2012    2013    2014    2015    2016    Average growth
(%)
Industrial total output value (RMB billion)    44.1    47.77    57.18    58.48    59.85    7.8
Product sales revenue (RMB billion)    42.6    46.18    53.85    52.71    53.18    5.5
Total profit and tax (RMB billion)    4.16    6.188    9.63    9.15    8.31    18.8
Total output of dyestuffs and pigments (kt)    1 043    1 106    1 149    1 145    1 162    2.7
Output of dyestuffs (kt)    833    895    917    922    928    2.7
Output of organic pigments (kt)    210    211    232    228    234    2.6
Output of dyestuff/pigment intermediates (kt)    313    308    287    320    324    0.8


Table 2   Export of dyestuffs/pigments by type, 2016

Variety    Export volume (kg)    YoY growth (%)    Export value (US$)    YoY growth (%)
Disperse dyes    101828268    2.7    627633715    -9.6
Acid dyes    15694298    -6.1    109243976    -12.5
Basic dyes    13433687    4.4    97639374    -4.4
Direct dyes    12622313    6.4    44313146    -8.2
Reactive dyes    35900100    -13    232272017    -20.1
Vat dyes    6127245    13.2    73594248    -3.6
Indigos    38223345    15.4    168479911    7.8
Sulfur dyes    4841953    18.5    14378822    14.5
Sulfur black    31670052    16.8    50571727    15.9
Total of dyestuffs    260341261    3.5    1418126936    -8.5
Organic pigments    144827815    2.1    1046883379    -5.1
Fluorescent whitening agents    50949081    10.6    154357109    5
Dyeing/printing auxiliary    38223892    11.3    76139363    -3.3


Table 3   Monthly export of dyestuffs, 2016

Month    Export volume (kg)    Growth over the same period of 2015 (%)    Export value (US$)    Growth over the same period of 2015 (%)
1    23390920    10.9    128942383    -6.1
2    14374264    -28.0    78212253    -39.0
3    23032509    18.2    118597994    -10.0
4    26143786    16.5    139713587    -3.0
5    29831892    24.4    159951779    -1.8
6    21957310    8.6    120678465    -10.7
7    20648008    6.2    117675448    -13.1
8    21434232    16.0    121727687    0.2
9    15654408    -21.1    90777315    -16.7
10    17848106    -13.4    97668384    -13.6
11    22824049    4.8    119257342    7.9
12    23201777    -4.5    124924299    3.4
Total    260341261    3.5    1418126936    -8.5


Import of dyestuffs/pigments, fluorescent whitening agents & dyeing/printing auxiliary

China’s import of dyestuffs grew only a bit in 2016. Vat dyes and indigos, however, were imported at a considerably higher rate, growing 19.6% YoY. Growth in disperse dyes and reactive dyes was quite slow. The volume of fluorescent whitening agents imported was 3.4% lower than in the previous year, and the value was 22.1% lower. The volume of dyeing/printing auxiliary increased. Table 7 shows the details.
(1) Monthly import of dyestuffs, 2016
China imported 29kt of dyestuffs during 2016, up a bit, 2.2% YoY. Of course not all months were positive. By month, the biggest YoY reduction was 19.1% in April. The total import value for the year was US$290 million, down 3.6% from the previous year. Table 8 shows the details.
Sources of imported dyestuffs during 2016 numbered 40, five less than in the previous year, according to customs. India and Taiwan remained the top sources. The volume from India increased 18.9%, while the volume from Korea was up 8.2%. Volumes imported from all others except Germany declined – in particular, the volumes from Indonesia and the United States were 13.8% and 11.5% lower, respectively. The total volume imported from the top 10 sources was 28kt, up 3.3% YoY, and accounting for 96.6% of the total. The import value was US$270 million, a drop of 3.2% from the previous year and accounting for 93.1% of the total. Table 9 shows the details.
(2) Monthly import of organic pigments & products, 2016
The import situation for organic pigments and products was very similar to that of dyestuffs. The volume was 17kt, a YoY drop of 1%, according to customs. The value was US$280 million, up 5.3%. The monthly import volume in August was up 14.2% YoY, and the value was up 22.6%. Table 10 shows the details.
Sources of imported organic pigments and products in 2016 numbered 47, three more than that in the previous year. It should be noted that the volume from Singapore grew 340.5% YoY, but the volume was not big. The volume from Malaysia declined most, falling 38.1% from the previous year. The total imported from the top 10 sources of 2016 was 15kt, accounting for 88.2% of the total. The import value was US$250 million, a YoY increase of 6.7%, and accounting for 89.3% of the total. Table 11 shows the details.

Table 4  Top 10 export destinations for dyestuffs, 2016

Sr. No.    Destination    Export volume (kg)    YoY growth (%)    Export value (US$)    YoY growth (%)
1    Korea    31723036    0.2    151551910    -8.4
2    Indonesia    30553298    4.7    159210712    1.1
3    Taiwan    21132927    -6.3    131871810    -18.1
4    Pakistan    18774580    5.2    60073595    -3.8
5    India    18294696    19.6    93889234    4.0
6    Bangladesh    17400755    -4.3    68023986    -15.5
7    Turkey    14156002    -9.8    78181866    -16.8
8    Vietnam    13141445    -1.5    61958271    -14.7
9    Thailand    12902309    17.3    70179574    -5.7
10    Brazil    11496795    55.2    53876612    14.2
    Total    189575843    4.1    928817570    -7.6


Table 5    Monthly export of organic pigments & products, 2016

Month    Export volume (kg)    Growth over the same period of 2015 (%)    Export value (US$)    Growth over the same period of 2015 (%)
1    12011845    -1.6    89495977    -11.6
2    9145317    -20.4    65029939    -29.6
3    13522446    19.5    98753880    17.2
4    12572259    -1.0    93168045    -7.7
5    14052012    8.8    103626599    3.3
6    12408356    1.0    92976092    -3.6
7    12051981    -1.1    86747531    -14.3
8    13714525    20.6    99374265    11.4
9    10378573    -8.2    72657064    -16.1
10    10959518    -6.3    76164146    -10.4
11    11774537    13.1    83585129    7.1
12    12236446    1.9    85304712    -2.8
Total    144827815    2.1    1046883379    -5.1


Table 6   Top 10 export destinations for organic pigments & products, 2016

Sr. No.    Destination    Export
volume (kg)    YoY growth (%)    Export value (US$)    YoY growth (%)
1    United States    21683013    -0.8    158558039    -10.3
2    Netherlands    11529655    -8.6    82296938    -11.3
3    Germany    11138562    -3.9    67839289    -6.9
4    Belgium    6602676    15.7    68264135    -3.6
5    Indonesia    6173294    2.9    42771169    -8.4
6    Japan    5881792    5.6    59985294    2.5
7    India    5303654    18.5    35078038    5.7
8    Korea    5177268    8.7    53157649    0.2
9    Brazil    5062394    13.8    34695570    8.2
10    Vietnam    4966883    5.3    28287630    -0.7
    Total    83519191    2.2    630933751    -5.2


Table 7   Import of dyestuffs/pigments, 2016

Variety    Import volume (kg)    YoY growth (%)    Import value (US$)    YoY growth (%)
Disperse dyes    2117402    0.9    35458429    6.6
Acid dyes    10958948    7.1    106001358    -3.9
Basic dyes    892855    16.6    9122799    -1.3
Direct dyes    2348334    3.1    15715030    -1.8
Reactive dyes    11496605    -3.4    112251968    -6.5
Vat dyes    339227    -15.7    6109618    -16.7
Indigos    10575    19.9    105965    -33
Sulfur dyes    717562    16    3353210    -1
Sulfur black    444293    12.9    2532825    34.7
Total of dyestuffs    29325801    2.2    290651202    -3.6
Organic pigments    16915059    1    280361432    5.3
Fluorescent whitening agents    6139479    -3.4    24057779    -22.1
Dyeing/printing auxiliary    61378599    15.3    216013227    5.2


Table 8   Monthly import data of dyestuffs, 2016

Month    Import volume (kg)    Growth over the same period of 2015 (%)    Import value (US$)    Growth over the same period of 2015 (%)
1    2083880    -4.1    21626916    -7.3
2    1543844    2.7    16657933    2.7
3    2726145    -3.9    28448581    -9.2
4    2467425    -19.1    25055479    -22.4
5    2899094    5.2    27371293    -7.8
6    2873922    2.8    29006498    -2.3
7    2512646    -2.7    23649175    -15.9
8    2465812    17.6    23556077    7.4
9    2248159    -10.4    22753986    -5.9
10    2095370    6.9    21557217    9.4
11    2873431    41.1    26669009    31.0
12    2536073    5.7    24299038    -1.6
Total    29325801    2.2    290651202    -3.6

Table 9   Top 10 sources of imported dyestuffs, 2016

Sr. No.    Source    Import volume (kg)    YoY growth (%)    Import value (US$)    YoY growth (%)
1    India    10082102    18.9    72297249    5.5
2    Taiwan    5298151    -7.2    44576706    -11.1
3    Thailand    4498403    -0.4    53877572    -3.4
4    Korea    1931447    8.2    13647416    -9.7
5    Indonesia    1313426    -13.8    16674431    0.7
6    Spain    1162527    -3.7    11267829    -7.4
7    Japan    1156317    -5.6    29871238    -1.1
8    Mexico    1015171    -4.4    11932782    -5.2
9    Germany    790678    1.6    12276262    -7.4
10    United States    617560    -11.5    8370363    -12.1
    Total    27865782    3.3    274791848    -3.2

Table 10   Monthly import of organic pigments & products, 2016

Month    Import volume (kg)    Growth over the same period of 2015 (%)    Import value (US$)    Growth over the same period of 2015 (%)
1    1282660    -5.7    24279099    2.8
2    992702    9.8    16231957    -1.0
3    1538253    -1.9    24481072    1.6
4    1255124    -14.4    21259901    -2.0
5    1509343    -6.7    24259432    7.7
6    1605374    1.3    24879817    -0.1
7    1464504    -5.6    25567478    -1.4
8    1297325    14.2    22631196    22.6
9    1604001    9.2    25864413    5.4
10    1332199    8.9    22126855    19.7
11    1470930    -1.7    24251450    5.8
12    1562644    13.9    24528762    8.1
Total    16915059    1.0    280361432    5.3


Table 11   Top 10 sources for imported organic pigments & products, 2016

Sr. No.    Source    Import volume (kg)    YoY Growth (%)    Import value (US$)    YoY growth (%)
1    Korea    3060506    15.0    75142611    4.8
2    India    2821686    7.9    21357175    4.2
3    Germany    2602244    17.1    51037550    14.0
4    Japan    2003895    -3.2    42293944    8.9
5    Taiwan    1949622    -15.6    21862112    4.4
6    United States    1479137    -17.7    26855549    -1.0
7    Britain    544241    -9.5    5702965    -11.5
8    Malaysia    311647    -38.1    1087130    -36.3
9    Singapore    249026    340.5    1798725    163.6
10    Italy    220345    30.6    2981545    79.9
    Total    15242349    1.6    250119306    6.7


Future development

It is readily apparent that the economic performance of the dyestuff and pigment sector kept stable in 2016. The indices were basically stable, with some YoY increases.
Dyestuff and pigment enterprises have accelerated transformation and upgrading despite greater environmental protection pressure, higher labor costs, intensified enterprise competition and slower growth of demand. It is expected that the major economic indices will increase further in 2017, but growth will be slower. It is reasonable to hope that export prospects will improve.