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Chinese dyestuff industry pushed into corner
19
Feb '10
Chinese dyestuff industry, the largest producer and consumer of dyestuff in the world registered negative growth in 2008. Production touched 678,000 tons, which is 50% of world total production, while total consumption recorded was 502,300 tons.

There are around 300 Chinese producers contributing to the total dyestuff production capacity of about 800,000 tons. There are many problems that the Chinese dyestuff industry is facing today like, unreasonable product mix prompted by oversupply, while many raw materials are facing a shortage.

Other problems include considering after treatment as a bottleneck rather than going for a proactive approach, low quality and less variety of auxiliary agents along with low level of finishing technology. Weak international marketing ability due to communication barrier is a challenge and even R&D is also one sector which needs further improvement.

Apart from all these internal problems, Chinese dyestuff industry is currently under huge pressure for REACH implementation which is mandatory to continue export activity in European market. Growing environmental concern is giving tough challenge to Chinese industries.

In recent time, profits have also fallen due to increasing costs and cancellation of export tax refund.

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Fibre2fashion News Desk - China

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