Reasons for the Increasing Export Volume of Dyes in China

In January 2017, China exported 10,105.64mt of disperse dyes, increasing 6.98% M-O-M. That export volume continued the uptrend in the past four months. The export volume in January 2017 jumped 166.97% from September 2016. However, January is the off-season for printing and dyeing industry. There are two major reasons for the increasing export volume of disperse dyes.

Decreasing Export Price

After the rapid expansion from 2012 to 2015, the overcapacity has become obvious on the slow growth of the global economy. The competition in the dye market is fierce. Reasonable prices become the key point when downstream customers purchase dyes. In recent two years, the export prices were low while the volume was large.

In August 2016, disperse dyes producers raised prices and Chinese dye producers followed. USD offers also went higher. However, with the coming G20 Summit in Hangzhou, the peak season came in advance, off-season was the same. After September 2016, disperse dyes prices went down. Then, players became bullish about the market after the Spring Festival, so traders and downstream users stocked up. Therefore, the export volume jumped.

Spring Festival Holiday’s Influence

China’s Spring Festival holiday started from January 27 and ended on February 2, 2017. Moreover, printing and dyeing producers started to take holiday in mid-January and the purchasing for dyes basically stopped. Normal trading recovered after the Festival of Lanterns. The influence of Spring Festival on the export market lasted for one month. Hence, most traders traded orders in advance, which boosted the export market.