Huicong Chemical Network News: At the 2018 Cross-Strait International Organic Pigment Industry Annual Conference held in Shanghai from October 23 to 24, participants said that the US tariff increase had a greater impact on China's organic dye exports and hoped that the country could resume export tax rebates.

 

According to Dong Shunqing, sales director of Shanghai Yingyan Chemical Import and Export Co., Ltd., China's export tax rebate for organic pigments was canceled in 2007, but dye pigment intermediates still enjoy an export tax rebate of 6% ~ 9%, which makes the export price of dye pigment intermediates in China lower than the domestic price, virtually weakening the international competitiveness of China's organic pigments. At the same time, Indian companies, competitors of domestic enterprises, enjoy export tax rebates for organic pigments. Today, the United States has increased additional tariffs on organic pigments exported to China, and the competitiveness of organic pigments in China will further decline.

 

Tian Liming, vice president of the China Dyestuff Industry Association, said that the list of US tax-increased products covers almost all categories of organic pigments. According to the tax rate and the actual cost of the industry, China's organic pigments will be difficult to enter the U.S. market. In recent years, India, South Korea organic pigment production capacity growth accelerated, will take the opportunity to enter the U.S. market, squeeze China's market share. Therefore, industry associations and related production and export enterprises hope that the country will restore the export tax rebate for organic pigments. Zhang Shuihe, director of the Organic Pigment Special Committee of the China Dyeing Association, also expressed the same view.

 

Tian Liming introduced that in recent years, China's export volume of organic pigments and preparations is about 150000 tons per year, mainly exported to the United States, the Netherlands, Germany, Belgium and other countries. The United States is the largest exporter of organic pigments and preparations in China, with an annual export volume of about 23000 tons, accounting for nearly 15% of the total export volume. Relevant statistics show that in the first half of the year, my country's export volume of organic pigments and preparations was 68000 tons, a year-on-year decrease of 10%.

 

Shi Xianping, President of China Dyestuff Industry Association, further pointed out that the consumption of organic pigments in the United States will rise steadily in the future, and the import volume will continue to rise. From the perspective of the import structure of organic pigments in the United States, phthalocyanine products account for about 50%. India had a greater advantage before the Sino-US trade war. If tariffs are further increased, my country will lose this market; my country's red and yellow products have advantages Yes, but it will also be weakened by tariffs.

 

Shi Xianping believes that if the Sino-US trade war continues for a long time, the impact will be very serious. Not only will Indian companies seize the opportunity to expand the U.S. market, but U.S. companies will also increase production capacity. The indirect impact can not be ignored, China's organic pigment downstream enterprises export products to the United States if blocked, will also reduce the domestic consumption of organic pigments.

 

At the meeting, Dong Shunqing brought the latest international developments to make enterprises more uneasy: India intermediate enterprises to invest enthusiasm, azo pigment production capacity to accelerate growth. In addition, the international major organic pigment users have listed China as a high-risk country. Zhang Shuihe stressed that organic pigment enterprises should do a good job in environmental protection and safety, and increase innovation efforts to meet the challenges.