Dyestuff and Organic Pigment Developed Stably in 2005

Stable growth of productionAt a time of the price rise of raw materials, the supply deficit of energies such as power and the saturation of the dyestuff market, the output of dyestuffs and organic pigments increased in 2005 through the efforts in readjusting product distribution, improving product quality, accelerating new product development and expanding market, but the growth rate had a further reduction. In spite of an overall growth slowdown, large producers still managed to maintain a certain growth. Major economic indexes in 2005 were higher than those in 2004. Although the production had a slight drop in some producers such as Zhejiang Runtu Chemical Group Corp. and Dystar Wuxi Dyestuff Co., Ltd., profits they accomplished in 2005 were higher than 2004.     According to statistics from the China Dyestuff Industry Association (CDIA), the product sales revenue accomplished in 2005 was RMB29.131 billion (including dyestuffs and organic pigments), an increase of 29.34% over 2004. The profit was RMB1.999 billion (including dyestuffs and organic pigments), an increase of 24.08% over 2004. The profit growth was 16 percentage points higher than that in 2004. Export-oriented enterprises improved remarkably in economic performance. Due to weak competitive edge and serious loss, small enterprises were forced to make production reduction or suspension. Enterprises with large scale, however, achieved a considerable profit growth.    In mid-2005 BASF Dyestuff Chemical Co., Ltd. sold its pigment products to CVC of Britain and established Aster Print Pigments (China) Co., Ltd. The total output of pigments in these two companies was 10 957 tons in 2205, a drop of 21.41% from 2004.     According to statistics from CDIA, the output of dyestuffs in China was 640 900 tons in 2005, an increase of 7.12% over 2004. The figure is much lower than the output of 1.0613 million tons as provided by the National Bureau of Statistics of China mainly because China Dyestuff Industry Association only made statistics of the output in its member enterprises. The output of organic pigments was 156 600 tons, an increase of 9.08% over 2004. The output of both dyestuffs and organic pigments in 2005 hit the highest historical record. Major producing provinces and municipalities included Zhejiang province, Jiangsu province, Shanghai and Tianjin.    Rapid increase of export valueAccording to statistics from the Customs General Administration, the total export amount of various dyestuffs in China was 231.4 thousand tons in 2005, an increase of 2.1% over 2004 and hitting the highest historical record. The total export value of dyestuffs and organic pigments reached US$1.253 billion, an increase of 15.59% over 2004.    The export amount and the export value of various dyestuffs maintained a stable growth in 2005 on the basis of an overall growth in 2004. In spite of a small negative growth in basic dyes and disperse dyes, the export value of various dyestuffs maintained an overall growth for two consecutive years and the economic performance in export had a remarkable improvement. The export value of various dyestuffs basically maintained a two-digit growth.    Reactive dyes had a relatively high growth. The export amount of reactive dyes reached 22 042 tons in 2005, exceeding 20 000 tons for the first time in history and an increase of 15.9% over 2004, but the growth rate was around 35 percentage points lower than that in 2004. The export value growth was 1.0 percentage point higher than the export amount growth. Reactive dyes in China have developed constantly in recent years. China has become a major producer in the world and a great interest has been aroused in the global dyestuff industry.    Vat dyes and other dyes made an overall growth in 2004. The export amount maintained a growth in 2005. The target of high quality, high price and high performance in high-grade dyestuffs was attained. In vat indigo dyes, in particular, the situation of 'increasing the amount without improving the performance' in the past was changed.    The export amount of disperse dyes was 95 thousand tons in 2005, a drop of 1.4% from 2004 but still held the first place in various dyestuffs. The export performance was stable and had a slight improvement. Disperse dyes in China were directly exported to 79 countries and regions in 2005. Considerable market shares and competitive edge have been gained in the international market. Better utilization of product advantages should be made to increase the export amount and the export value.    The export performance of various dyestuffs continued to have a stable growth in 2005. The export value of dyestuffs was US$756 million, an increase of 17.1% over 2004.   China exported dyestuffs to 123 countries and regions in 2005, being 5 more than 2004. The amount exported to the top 10 countries and regions was 153 500 tons, accounting for 66.34% of the national total and the export value was US$498 million, accounting for 65.87% of the national total. The amount exported to Taiwan province, Korea and Hong Kong had a declining trend in 2005, but the export value made a positive growth. The export value growth in all major export destinations was higher than the export amount growth.    The export of organic pigments in China maintained a stable development in 2005. The export amount reached 114.7 thousand tons (including pigment products such as coatings printing paste and color masterbatch, the actual export amount of organic pigments being around 60 thousand tons), an increase of 8.2% over 2004 but the growth was 15 percentage points lower. The export value was US$497 million, an increase of 13.3% over 2004 but the growth was 13 percentage points lower. The export value growth was 5 percentage points higher than the export amount growth. The export performance therefore still maintained a trend of growth. The market competitive edge of organic pigments in China has been enhanced in recent years.    China exported organic pigments to 107 countries and regions in 2005, being 10 more than 2004. There were no great changes in major export destinations. The export amount and the growth margin in some countries, however, had considerable changes. The growth was the most rapid in Belgium. The amount exported to Belgium increased from the 10th place in 2004 to the 7th place. The export amount increased by 41.4% and the export value also increased synchronously.    The United States has been the largest country for the export of organic pigments in China for long years. The amount exported to the United States continued to increase stably in 2005. The export value was 25.2% higher than 2004. The export value growth was 11.6 percentage points higher than the export amount growth. Negative growth of importThe import growth of dyestuffs in China started a gradual reduction in recent years. The growth was 9.4% in 2003 and only 0.4% in 2004. The import amount in 2005 was 0.2% lower than 2004. The growth was reduced and finally a negative growth appeared. It was not because the market demand was reduced, but owing to the rapid development of the dyestuff industry in China domestic products replaced partial import products.   Varieties with an import amount of over 10 thousand tons included acid dyes and reactive dyes. The import amount of vat dyes and basic dyes still had a rapid growth.   China imported dyestuffs from 52 countries and regions in 2005, being 6 more than 2004. Major import sources in 2005 were basically similar to those in 2004. Countries with considerable import growth included Thailand and Germany.