SunSirs: Cost-Driven Rise in Disperse Dyes Continues

Recently, significant price hikes in key components of disperse dyes have drawn widespread market attention. This wave of price increases is attributed to cost pressures and is expected to persist after the holiday season.

In the secondary market, listed dye companies such as Zhejiang Longsheng, Runtu Co., Ltd., and Jihua Group have been actively pursued by investors.

Industry sources indicate that the primary driver behind the recent dispersion dye price surge is the substantial increase in the cost of the upstream reducing agent 2-Amino-4-acetamidoanisole (commonly known as o-Amino-p-acetamidoanisole). “On January 20th, the price of the reducing agent was only CNY25,000 per ton. It quickly rose to CNY38,000 per ton and then CNY50,000 per ton. By February, it had reached CNY70,000 per ton,” a representative from a Zhejiang-based listed company specializing in disperse dyes told reporters. The price increase of the reducing agent has been passed on to disperse dyes, and downstream acceptance has been relatively good. “The main downstream users of disperse dyes are dyeing factories, and the overall cost in the printing and dyeing process accounts for a relatively small proportion.”

Staff at Zhejiang Longsheng noted that most key disperse dye products have recently seen price hikes. Disperse black, for instance, has undergone multiple adjustments since mid-to-late January, reaching 21,000 yuan per ton—a cumulative increase of CNY5,000 per ton. “Historically speaking, current prices remain at a lower-middle level,” they added.

Recently, price increases for major reactive dye varieties have been relatively moderate compared to disperse dyes, though some niche varieties have seen significant hikes—such as Reactive Brilliant Blue, which rose from ¥150,000/ton to ¥180,000/ton.

Regarding the future trajectory of disperse dyes, the supply landscape remains stable. The current off-season will transition into peak demand after the Spring Festival. This supply-driven price surge is expected to persist for 1-3 months before entering a high-level consolidation phase. If terminal demand fails to show significant improvement in the second half of the year, dye prices may gradually stabilize after the fourth quarter.

The sharp price fluctuations across certain segments of the dye supply chain could prove the final straw for small and medium-sized producers already operating on razor-thin margins.

Companies without integrated intermediate production may see their market share further squeezed or even exit the market. Integrated enterprises like Zhejiang Longsheng and Runtu Co., Ltd. may seize this opportunity to increase their market share.

Recently, Zhejiang Longsheng's reduction agent production capacity stands at approximately 20,000 tons per year. This product is currently manufactured primarily by Longsheng, Zhejiang Runtu Co., Ltd., and Ningxia Zhongsheng New Technology Co., Ltd., with Longsheng holding the largest output. Through years of technological and industrial investment, and leveraging its integrated intermediate production layout, Longsheng is poised to reshape the dye industry landscape, with its dye production capacity set to expand further.

Runtu Co., Ltd. similarly stated its annual reducing agent capacity is approximately 8,000 tons. Production adjusts to market conditions, with most output used internally to support the company's disperse dye production. Significant price increases for reducing agents would positively impact the company's performance.

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