| Output growth in China's dyestuff industry had slowed | | | | of dyestuff exports, either. |
| down in 2007, but growth quality had improved. Total | | | | On abolishing of export rebates and lifting export |
| export and import volume amounted to 351,400 tons, | | | | prices, the price level of Chinese dyestuff in the |
| up 10.09% over previous comparable period (pcp), and | | | | international market is now similar to prices levels of |
| total value was US$1.45 billion, up 20.3% over pcp. It is | | | | other Asian dyestuff exports, but still a bit lower than |
| expected that in 2008, output growth of the dyestuff | | | | European and American products. Despite the |
| industry in China will remain stable or even slow down, | | | | reduced price advantage, the product quality and |
| but export volume may continue to increase. | | | | market shares of Chinese dyestuff have improved |
| 2007: Slower growth but quality improved | | | | considerably. |
| Although total dyestuff output still registered a growth | | | | 2008: A steady trend |
| of 10.8% in 2007, the growth rate had declined 1.3 | | | | Several factors may negatively affect the dyestuff |
| percentage points from the previous year. Statistics | | | | industry in China in 2008, including government macro |
| showed that output of all dyestuff varieties had grown | | | | policy, production cost increase, environmental |
| in 2007, with disperse dyes, reactive dyes and sulphur | | | | pressure and global economic uncertainty. The |
| dyes being the top three largest categories. In terms of | | | | following aspects should warrant some attention from |
| output sources, provinces such as Shandong, Inner | | | | dyestuff producers. |
| Mongolia, Zhejiang and Guangdong registered | | | | Speed up the pre-registration process under the |
| significant growth, and Zhejiang Province remained the | | | | European REACH (Registration, Evaluation, |
| number one dyestuff source in China. | | | | Authorization and Restriction of Chemicals) regulation, |
| Both export volume and performance had improved in | | | | which aims to more strictly regulate the trading of |
| 2007. China exported a record total of 284,000 tons | | | | chemical substances. There is a short timeframe (June |
| of dyestuff last year, up 13% from 2006, and total | | | | - December 2008) for pre-registration, so dyestuff |
| export value reached US$1.004 billion, up 25%, a | | | | exporters in China have to take quick actions, in order |
| notable improvement from previous years. Among the | | | | to fully pre-register all the relevant product lines. And |
| dyestuff categories, disperse dyes, reactive dyes, vat | | | | the China Dyestuff Industry Association should also |
| dyes and sulphur dyes were popular export items. | | | | facilitate the process for exporters, so that the impact |
| Among major dyestuff exporting provinces, Hebei, | | | | from implementation of REACH regulation can be |
| Guangdong, Jiangsu and Shanxi had all experienced | | | | reduced to a minimum. |
| 20% plus growth rates. Zhejiang continued to be the | | | | There are three benefits for dyestuff products in |
| biggest exporter of dyestuff, exporting 112,000 tons | | | | China to go through the pre-registration process. First is |
| from China, equivalent to 39.4% of the national total. | | | | the inexpensive pre-registration fee, which can ensure |
| In terms of destinations, Chinese dyestuff exports to | | | | a company's export permit for 2-10 years. Second is |
| Thailand, Korea, India and Taiwan were growing fast. | | | | that as the number of pre-registered products |
| US was the only destination which had seen a | | | | increases, there will be more products available for |
| reduced volume, but the trade value still increased | | | | exports. The last point is that the pre-registration |
| somehow. | | | | requires a producer's real name and product names |
| On the other hand, China's dyestuff imports had | | | | and trademarks, which will be circulated in the network |
| steadily declined in 2007. Total dyestuff imports | | | | of European Chemicals Agency. This can potentially |
| amounted to 67,000 tons, down 0.9% from previous | | | | improve the brand recognition for the producer. |
| year, while the monetary value remained flat at | | | | Chinese dyestuff companies should also improve |
| US$442 million. The reduced number of imports does | | | | product innovation, so that they can establish |
| not necessarily mean reduced market demand, but the | | | | higher-value brands in the international market. There |
| substitution by the fast growing domestic dyestuff | | | | have been a few leading dyestuff companies in China |
| industry. In terms of product mix, major import | | | | investing in innovations, product qualities and |
| categories had all experienced decline, including | | | | technological contents, and some production |
| reactive dyes, acid dyes and direct dyes. | | | | technologies are also in the process of |
| The negative effects from the removal of export | | | | commercialisation. |
| rebates had alleviated at the year end. Since 1st July | | | | Lastly, the dyestuff industry in China is now facing |
| 2007, China had reduced its dyestuff export rebates | | | | more and more environmental constraints. Therefore, |
| from 13% to 0%, leading to export price increases of | | | | companies should invest in researches of wastewater |
| 10 - 15%. The effect was evident in July and August, | | | | treatment technologies and equipment, and accelerate |
| with immediate reduction of export orders. But the | | | | the development of less-polluting dyestuff production |
| situation was returning to normal levels since October, | | | | techniques. The whole industry should also encourage |
| which had largely offset the impact on domestic | | | | environmental technology exchanges and promotions, |
| dyestuff manufacturers. And the removal of export | | | | in order to meet the government's energy efficiency |
| rebates had not significantly impacted on the volume | | | | and emission reduction targets in the next 3 years. |