IMPACT OF COVID-19 ON REACTIVE DYES MARKET
The Covid-19 pandemic is causing widespread concern and economic insolvency for numerous companies, businesses, and consumers across the globe. The situation is fast-moving with wide ranging impacts on chemical industry. Global reactive dyes market has witnessed a steady demand in the last few years owing to the growth in textile industry and diverse end-use applications. Further, the reactive dyes market is potentially hit hard by global pandemic crisis on numerous fronts such as decline in demand and productivity, availability of raw materials, operational and supply chain disruptions, and lockdowns in key regions.
China and India are one of the major exporters of dyes, as well as large quantities of important raw material and dye intermediate chemicals. Around 80% of the reactive dyes is produced and consumer in Asian countries, out of which China holds around 40-45%. China, one of the leading producers and consumer of reactive dyes globally was the most affected country in the first quarter of 2020 and hence, has witnessed a decline in demand for reactive dyes. Further, due to the worsening condition in countries like US and European countries, the demand for reactive dyes is waning mainly due to the logistics and supply chain disruptions. Moreover, the major raw materials and dyes intermediates are petroleum-based product and thus, it is highly influenced by the negative oil prices, as lower input prices lead to lower output prices.
The major producers in the reactive dyes market include Huntsman International LLC. (US), NIPPON KAYAKU CO. LTD. (Japan), Sumika Chemtex Co., Ltd. (Japan), Archroma (Switzerland), Colourtex (India), Kiri Industries Ltd. (India), amongst others. These key producers have taken preventive measures to safeguard their workers and have shut down their production facilities as per the regional norms. The major end-use industries such as textiles, paper and leather have witnessed a sluggish demand experiencing pressure amidst the pandemic situation.
As per MRFR analysis, the reactive dyes market has witnessed a huge impact due to the global pandemic situation. However, post COVID-19 scenario would bring back in line the production and demand for reactive dyes, owing to the growing demand from textile industry.