The international dye market staged "Dragon Elephant"

"In the next five years, the development of the Chinese dyestuff industry will slow down and India will become the biggest competitor. Now the competition between dragons and elephants is only one layer of 'window paper'. If there is a breakthrough in tariffs, Indian dyes are bound to have an impact on the Chinese market.” On August 22-24, at the International Pigment Industry Development Forum held in Shanghai in the 2010 post-crisis era, Wang Wei, Chairman of the China Dyestuff Industry Association, was interviewing the reporters about the future of the world. The dye market structure made the above judgment. How will the "Dragon Elephant Bucket" of China and India in the dye market evolve? Who will become the leader of the new round of adjustment in the global dye industry? These slightly smokey topics became hot topics in the forum.

Sino-Indian industry competition is inevitable

Wang Xi told reporters that China's main rival of the dyeing industry is India. In 2009, India became the largest source of imported dyes in China, while China’s exports to India ranked fifth. Although India also has problems such as backward infrastructure, projects such as “triacids and alkalis” and intermediates that are complementary to the dye industry are more complete than other countries. “In the long run, competition between China and India is inevitable. Other Asian countries do not have obvious advantages over China,” he said affirmatively.

Wang Xi further analyzed that the labor costs of Vietnam and Indonesia are low, but the related supporting industries are not developed enough, and the quantity of dyes and the size of the industry are also difficult to compete with China. In developed countries such as South Korea, Japan, and Europe, there have been some dye exports to China before, and the volume of exports has fallen significantly in recent years. After losing the comparative advantages in terms of cost, market, etc., the scale of the dyestuff industry in these countries has been significantly reduced, and only some high-tech and high-value-added products that China cannot produce have been attacked. Yan Yongxiong, Director-General of Taiwan's dyeing and pigments trade association, also believes that India's dyeing pigment industry has a good foundation. After years of development, it has a certain strength, and relevant supporting facilities can basically meet the needs of industrial development. This will pose a certain pressure on China.

Janak Mehta, president of the Indian Dyestuff Manufacturers Association, is relatively low-key. In response to a reporter’s question, he said: “China and India have many similarities, but in the dye-dyeing industry, many companies in China are very large-scale, while India is mostly dominated by small and medium enterprises. Although China and India have certain Competitive relations, but from the current point of view, the competitiveness is not great, because China's production capacity is very large, while India's production capacity is relatively small. "However, the reporter found that the forum Indian parties specially organized a six-member expert mission, it can be seen China's market and industry trends.

India's advantage of late can not be underestimated

Mehta said that India’s dyeing pigment industry has been developing rapidly since 2004, and the international financial crisis that broke out in 2008 has constituted a major impact, causing the size of the main dye market to shrink. Companies are generally facing contraction or cancellation of orders and high inventory levels. No, the cost pressure surges, the proportion of bad debt increases, and the capital chain is tight. Through the company's own efforts, as well as the government's support in the areas of ** and taxation, the Indian dye industry is now gradually out of the difficulties. It is expected that this year's major economic indicators are expected to return to the peak level in early 2008.

Meta forecasted that India's dyeing industry will maintain an annual growth rate of 5% in the coming years. At present, India uses 50 grams of dye per capita, and the average global level is 250 grams. It is estimated that by 2020, the per capita amount in India will reach 75 grams, thus providing a larger space for the development of the dye industry.

In 2008, Indian dye industry production capacity accounted for about 11% of the world's total production capacity, this year has accounted for 23%. "According to the relevant strategic plan, by 2020 India's dye production capacity will account for 35% of the world, and it is expected to become one of the leading players in the international market," he said.
Wang Hao believes that India's dyeing paint industry is generally about 10 years behind China, and it is difficult to make a big impact in the short term. However, India’s labor costs are low, and the “three wastes” governance pressure is relatively small. Export tax rebate policy is a major support, and currency devaluation is also conducive to exports. Right now, China's annual production of dyes is 750,000 tons, India is only 1/3 of China, and organic pigments, China's annual production is less than 200,000 tons, and India has reached 150,000 tons. He said: "In the long run, if the Indian economy can maintain stable and rapid growth, it will form a clear competition with the Chinese dye industry."

Take the differentiated competition of high-end routes

In the face of this situation, how should China's dye-painting companies respond? Wang Hao pointed out that domestic dyestuff companies need to study in depth the advantages and disadvantages of both parties and seek space for development through differentiated competition. Specifically, it is necessary to vigorously create brand-name products, improve the level of technology, product quality, and gain recognition from the international market. To develop into high-end products, one cannot blindly follow the low-end line. In addition, dyes are semi-finished products that cannot be used directly. They should provide users with comprehensive solutions and strive to improve their service to downstream users.

Coincidentally, India’s response to the issue is also largely the same. Mehta said: "In the future, Indian dye companies will pay more attention to environmental protection and brand building while pursuing profits." India has more than 900 dye-dyeing companies. Only when it is truly environmentally friendly can the industry achieve sustainable development. In terms of brand building, India actively encourages enterprises to innovate products and technologies, rejuvenates the industry through the expansion of the application areas, and strives to create conditions to promote integration and integration within the industry to form an overall external competitiveness.

Wang Xi emphasized: “Chinese dye companies need not be discouraged in the face of India’s offensive, because we also have certain advantages over India.” First, the development prospects of the textile industry in China are promising, providing the dye industry with market space; secondly, China is superior to India in the matching of resources and production capacity, and its industrial chain is relatively complete. Third, China’s overall technology and equipment are more advanced than India, providing strong support for the development of the dye industry.