Clothing Orders To Next May, Upstream Raw Materials Urgent Contraction, Dye Price Rise Is Full Of Momentum

Recently, due to the effective prevention and control of the epidemic situation in China, a large number of textile orders originally produced in India have been transferred to China, which has led to many domestic garment manufacturing orders scheduled for May next year. It has aroused widespread concern.

With the improvement of global demand and domestic return to work, the low point of clothing export narrowed after a 30% year-on-year decrease in April, and turned positive for the first time in August. In August, China's textile exports amounted to 14.72 billion US dollars, a year-on-year increase of 47%; clothing exports amounted to US $16.21 billion, a year-on-year increase of 3.2%, achieving the first monthly positive growth in the year. Huachuang Securities said that the textile and clothing industry's "turnaround" is mainly due to the rapid transfer of overseas orders from India and other countries to domestic production in the peak season of foreign trade.

In the upstream, the chemical industry has already entered the peak demand season. At the beginning of September, the news of dye price rising on the market was overwhelming, and the price of disperse dyes had been comprehensively raised. Taking disperse black ect 300% dye as an example, the ex factory price of the product has increased from 28 yuan / kg to 32 yuan / kg recently, up 14%. In the past two months, the price of the product has increased by 36%. Huachuang Securities said that tight supply is the main reason for the rise in dye prices.

As an important raw material of disperse dyes, m-phenylenediamine is also in short supply. Before that, domestic manufacturers of m-phenylenediamine mainly included Zhejiang Longsheng (65000 T / a), Sichuan Hongguang (15000 T / a), Jiangsu tianjiayi chemical (17000 T / a), etc. among them, tianjiayi exploded in March 2019 and completely withdrew from the m-phenylenediamine market. Sichuan Hongguang has been found 23 problems and hidden dangers in the process of law enforcement inspection, so it has taken the on-site treatment measures of temporary suspension of production and business. Only one supplier of m-phenylenediamine will be left in Zhejiang Longsheng. Under the dual stimulation of tight supply and performance growth demand, the price of m-phenylenediamine in Zhejiang Longsheng has begun to rise.

The financial association and xingkuang data combed the dye related concept stocks as follows, including Zhejiang Longsheng, Runtu shares, annoqi, Jinji shares, Qicai chemical, etc.