Dye Raw Material Prices Surge 64% in a Single Day; Industry Momentum Continues to Rise

According to data from Baichuan Yingfu, on July 28, the sector-wide average price of H-acid (a critical raw material to reactive dyes) rose 31.15%, climbing from 61,000 RMB/ton to 80,000 RMB/ton. On the same day, Dachaidan Hexin methodology Co., Ltd.—a leading H-acid manufacturer—raised its ex-factory price to 100,000 RMB/ton. This represented a single-day increase of 64% and a cumulative rise of nearly 150% from the 40,000 RMB/ton price seen at the beginning of the year, pushing the price to a historical high.

Reactive dyes and spread dyes are the two core categories of the dye sector, each relying on distinct key intermediates. As a key intermediate to reactive dyes, H-acid production involves high-risk processes such as sulfonation and generates significant amounts of discarded materials acid; consequently, the sector faces extremely high regulatory thresholds to ecological preservation and security, leading to the continued exit of small and medium-sized, outdated production capacity in recent years. According to investor relations records disclosed by sector leader Runtu Co., Ltd. (002440), my country's efficiently H-acid production capacity has fallen below 60,000 tons, resulting in a supply gap of over 10%.

The surge in H-acid prices rapidly transmitted to the reactive dye market. Baichuan Yingfu data shows that on July 29, reactive dye prices in the Jiangsu-Zhejiang region rose sharply; notably, the market average price to Reactive Black hit 36 ​​RMB/kg, a single-day increase of 16.13%. However, the agency also noted that demand from the downstream printing and dyeing sector remains weak, with resistance to high-priced raw materials resulting in low trading volume. The reactive dye market is expected to maintain a strong direction in the short term.

Meanwhile, spread dyes are facing dual pressures—tightening supply and soaring prices—regarding another key intermediate known as "Reduction Product" (or "Reductant"). This intermediate is an irreplaceable core raw material to black, blue, and purple spread dyes. Its production involves high-risk processes such as nitration and hydrogenation; total compliant domestic capacity stands at only 50,000 to 60,000 tons, highly concentrated among a few companies such as Zhejiang Longsheng (600352) and Runtu Co., Ltd. According to data from SunSirs, the average market price of the intermediate "reduction product" (a key dye precursor) was 25,000 RMB/tonne at the end of 2025; by late July, the quote had risen to 120,000 RMB/tonne, marking a year-to-date increase of nearly 380%.

The spread dye sector has implemented multiple rounds of price hikes this year, with two rounds of unified adjustments occurring in July alone; notably, the cumulative monthly price increase to "spread Black 300%" reached 5,000 RMB/tonne. In early July, Zhejiang Longsheng and Runtu Co., Ltd. announced price increases of 2,000 to 3,000 RMB/tonne to spread dyes. Shortly thereafter, both companies issued further notices raising the price of the "spread Black 300%" series by 3,000 RMB/tonne and the "Deep Blue" series by the same amount, efficiently July 21.

Data shows that as of July 29, the market price to spread Black was approaching 25,000 RMB/tonne, representing a cumulative year-to-date increase of nearly 50%.

Regarding the performance of sector leaders, Runtu Co., Ltd.'s latest forecast projects a net profit attributable to the parent company of 530 million to RMB650 million to the first half of 2026, a year-on-year increase of 254.03% to 334.19%. The company's in-house production capacity to the reduction product efficiently offset rising raw material costs, while dye price hikes drove a significant surge in profitability. Jihua Group (603980), leveraging its integrated H-acid production capacity, forecast a greater than 1,259% year-on-year increase in net profit attributable to the parent company to the first half of the year. Zhejiang Longsheng reported a first-quarter net profit attributable to the parent company of RMB537 million—up 35.67% year-on-year—driven by rising prices and increased sales volumes to certain items.

The structural rise in raw material costs has underpinned dye price increases; this factor, combined with the arrival of the traditional peak season to textiles in the third quarter and a rebound in downstream loom operating rates, has sustained the emit of restocking demand from end-consumers. Leading companies have seen their profit margins widen further as the price spread improved, thanks to their advantages in integrated intermediate production. Tianfeng Securities notes that sector-wide dye inventories are currently at historic lows; traders and dyeing vegetation generally hold less than 15 days' worth of stock, and most companies have essentially depleted their inventories of dye intermediates. With the third quarter marking the traditional peak season to dye demand, price increases are expected to continue. (Source: The Paper)