Disperse dyes in printing and dyeing industry raise prices again

       On April 15, the regular price of disperse dyestuff rose again by RMB 3,000/ton, and after this price increase, the product price reached RMB 31,000/ton. This is also the fifth time since March to raise prices. Analysts pointed out that factors such as environmental protection triggered supply-side contraction expectations, while the traditional printing and dyeing season is also an important reason for this round of price increases.


  Since March, the price of disperse dyes has been raised continuously. March 5, leap earth shares and other leading will be part of its product price increase of 10%-15%, disperse dyes yellow brown, red jade, dark blue, black and other varieties of a small increase of about 2,000 yuan / ton, followed by Zhejiang Longsheng also announced price increases.

  Analysts pointed out that dyestuff prices in the floor price rebound, production restrictions and the annual March-May printing and dyeing peak season and other multiple factors, is expected to promote the dye demand boom improvement.


   However, despite the rise in dyestuff prices, there is still a long way to go from the previous highs. 2015 was a year of downturn in the downstream fabric printing and dyeing market, with prices of disperse and reactive dyestuffs dropping significantly and related listed companies generally experiencing a decline in performance. Among the listed companies in the dyestuff industry, Leapfrog (10.010, 0.25, 2.56%) and Anuoqi (10.010, 0.25, 2.56%) announced their first-quarter earnings forecasts, both of which are expected to decrease. Leap earth shares are estimated to achieve a net profit of 50 million - 70 million yuan in the first quarter, down 79% - 85% year-on-year; Anuoqi is estimated to achieve a net profit of 24.77 million - 28.58 million yuan in the first quarter, down 25% - 35% year-on-year. Both companies said that the main product dyestuff prices fell sharply year-on-year, resulting in a significant decline in profit and gross margin year-on-year.



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