Why the dye market after the Spring Festival has such a clear trend

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Why the dye market after the Spring Festival has such a clear trend

Spring Festival holiday officially ended, with the businessmen back to the city and the dye factory to return to work, the dye market began to gradually recover, the dye market fried atmosphere began to intensify. Here, would like to share with you is another question: why the dye market after the Spring Festival has such a clear trend?

Some people say that after the Spring Festival, the dye factory to resume production led to increased demand for dyes, demand for the market to bring bullish stimulus, thus driving the market price of the uplink.

It was also said that the cost of promoting the upstream raw materials of benzene, naphthalene and chlor-alkali products rose sharply lead to increased production costs of dye pressure, driven by the price of dye pulled up.

These reasons are justified, but when we go to the depths of the discussion will find: these reasons is nothing but the market to persuade participants in the field and throw the argument.

Increased demand for the market will certainly bring some good support, but for the market, the demand has never been independent of the supply and demand balance is the real focus of the market. Dye industry as a serious excess capacity of the part, in the fierce competition in various factories, the pattern of excess supply has always been difficult to eliminate. In the first half of the printing and dyeing season, although part of the time node will be due to the delivery of goods caused by tight supply situation, but the overall social stock of dyes is still high, enterprises and traders invisible stocks are still large.

The cost of the push up, seemingly the most logical reason, but in the time node there is a certain deviation, the price of the raw material is not starting after the Spring Festival, but in the second half of 16 has already begun, and for up to six months Of the time, the cost of pressure has long been slowly transferred to the downstream.

Which led to the dye market in the Spring Festival after the start of the real reason to start rising cycle, in fact, the lack of dye market short mechanism.

In the traditional commodity market, factories, traders and downstream in different time nodes often play a different role. They will usually become the market to do more strength and short power. The dye market and the Chinese stock market is similar to the point: the lack of short mechanism.

As a natural long, the dye factory for performance considerations tend to be “big-flung” pull up, “sneaky” price cuts.

As a middle-line traders, they have a more flexible position, the holder can actively push up, throwing goods can take the initiative to hit the price. But as a docking dye factory, their behavior is often affected by the factory, and in the process of throwing goods is still subject to the continuity of supply constraints.

As the downstream dyeing factory, are born short, but in the dye market, the right to speak in the dairy industry is often difficult to focus on the face of the factory and traders together price increases, off-season or perhaps choose to stop mining wait and see resistance, but in the season orders just need to , Most of the dye factory can only choose passive acceptance, increase processing costs will be transferred to the downstream downstream.

After sorting out the relationship between them, we look at the dye market after the Spring Festival prices, may be more clear. Said that this is not the market to bring up the uplink, more manufacturers and businesses are raising the intention of gathering caused by the rise of the wave. Of course, the first quarter of the uplink and demand season is also inseparable from the arrival, after all, the season price increases, the customer acceptance is to be strong.

Dye risk in upstream

In this, Xiaobian also want to talk with you some other things. The first thing mentioned is that in the new year, dye manufacturers and traders for the choice of downstream customers to be careful, because in 2017 by environmental protection and other factors, is expected to still have a lot of printing and dyeing enterprises in trouble, Will likely spread to the upstream dye material suppliers.

In fact, the risk of customer choice is two-way, in the dyeing factory for the choice of upstream suppliers also implied a lot of crisis – true and false suppliers. Dye quality inspection indicators many: appearance, intensity, shade, water insoluble, fineness, light fastness, dispersion, etc., but in the normal production and trade generally only test strength and shade, and high precision Indicators for the detection of high requirements, some dye plants even difficult to prepare a complete set of testing equipment. And the merchant to the customer mail for the detection of samples sometimes with the quality of large goods there is a certain error, or even exclude the mail ship, the possibility of issuing fake goods.

Because the current dyestuff market mixed, manufacturers authentic, manufacturers of small factory products, recycling waste materials are doping them, to identify the authenticity of the participants for the eyesight and experience is very strict.

Especially in the process of rising prices of dyes, some low-end, low-quality products, the price advantage is obvious, dyeing factory if the pursuit of cost-effective, may fall into this trap, the procurement of inferior dyeing material is small, resulting in production Accident or even order can not be delivered is the greatest risk. Therefore, in the new year among the new market, as the dyeing plant procurement should be careful.

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