China Economic Reporter Chen Jiayun reported from Shaoxing
On March 11, RTGF (002440.SZ) disclosed that due to a significant increase in the price of key intermediate reducing agents, the price of disperse dye black has recently risen by approximately 24,000 yuan/ton, with the current quotation reaching 40,000 yuan/ton.
Reporters from China Business Journal learned from several listed dye companies, including Zhejiang Longsheng (600352.SH), that the prices of disperse dye products have recently seen significant increases. The main reason for the price hike is the substantial rise in the cost of upstream core intermediates, combined with the arrival of the traditional peak season for the textile printing and dyeing industry in March and April, leading to a concentrated release of downstream replenishment demand. The pressure from costs and demand has resonated, driving product prices upward rapidly.
Zhuochuang Information dye analyst Gu Shujing stated in an interview that the core of this round of price increases for disperse dyes is the skyrocketing price of core intermediates (reducing agents), compounded by rising upstream raw material prices that increase production costs. The supply of these intermediates is concentrated, and limited capacity or environmental upgrades can easily trigger price fluctuations that transmit to the dye end. This is essentially the result of cost-push, supply contraction, and policy changes working together.
Raw Material Prices Soar
The price increase of disperse dye black is primarily due to the continuous surge in the price of upstream reducing agents.
As a core intermediate in the production of disperse dyes, reducing agents play a key role in the synthesis of dark dyes, accounting for about 20%-30% of the total cost of disperse dyes. Data shows that the price of reducing agents was around 25,000 yuan/ton at the end of 2025, and by March 11, 2026, the mainstream market quotation had soared to 100,000 yuan/ton, with an increase of nearly 300% in just over two months.
&#34;The surge in reducing agent prices is the core driving force behind this round of price increases in the industry. In recent years, green production management has been comprehensively upgraded, some backward production capacity has exited the market, and the concentration of leading enterprises has increased, enhancing their bargaining power,&#34; Gu Shujing told reporters. The rectification of chemical parks and the increase in emission limits have made the operating rates unstable, reducing supply elasticity. Additionally, rising raw material and transportation costs, fluctuations in international energy prices, and increased domestic logistics costs have also indirectly raised overall costs.
On March 11, RTGF stated in a survey that the driving reason for this round of price increases is mainly the rise in the prices of raw material intermediates. Reducing agents are one of the important intermediates for disperse dyes, and their prices have been running at relatively low levels for the past two years. Prices began to rise in late January, and as of now, the market quotation for reducing agents is around 100,000 yuan/ton.
RTGF indicated that the prices of dye products are determined by market supply and demand as well as raw material prices. The company’s dye product prices follow market trends and adopt a price-following strategy. Due to the rise in reducing agent prices, the price of disperse dye black has recently increased by approximately 24,000 yuan per ton. As of now, the quotation for disperse dye black is around 40,000 yuan/ton.
In fact, the dye industry has entered a period of intensive price increases. Since early February 2026, leading companies such as Zhejiang Longsheng and RTGF have implemented multiple rounds of price hikes.
Integrated Advantages
China has become the world's largest producer, trader, and consumer of dyes, accounting for about 70%-75% of the world's total dye production. The main production areas for dyes in China are concentrated in Zhejiang, Jiangsu, and Shandong, with a high level of industry concentration
From the perspective of the competitive landscape, the main producers of disperse dyes include Zhejiang Longsheng, RTGF, Jihua Group, and Annoqi; the main producers of reactive dyes include RTGF, Zhejiang Longsheng, and Jinjis Co., Ltd.
Against the backdrop of soaring raw material prices and collective price increases in the industry, the dye industry is accelerating its concentration towards leading enterprises.
Gu Shujing pointed out that the industry is currently showing a significant trend of structural optimization: first, the concentration continues to rise, safety and environmental protection standards are constantly increasing, coupled with wide fluctuations in costs raising operational pressures, a large number of small and medium-sized enterprises are accelerating their exit from the market, and market share is further concentrating towards leading enterprises, making the oligopolistic competition pattern increasingly clear; second, the pricing power of leading enterprises has significantly strengthened, as they leverage core intermediate resource control or upstream and downstream production capabilities to establish a solid cost advantage, combined with the increase in market share enhancing their bargaining power, which is significantly better than the industry average; third, price coordination has noticeably improved, with the internal price adjustment rhythm of the industry gradually becoming consistent, effectively reducing the previous vicious price competition; fourth, industry barriers have increased, with new entrants needing to bear high investments in safety and environmental protection facilities, and facing stricter approval processes, making it difficult to break through the existing competitive landscape in the short term.
Public information shows that RTGF has a production capacity of about 8,000 tons of reducing agents per year, most of which is used for its own supporting disperse dye production, providing a certain degree of raw material self-sufficiency.
RTGF stated that disperse dyes are one of the company's main products, and reducing agents are one of the important intermediates for disperse dyes. Due to the impact of rising reducing agent prices, the market prices of the company's disperse dyes have been slightly adjusted upward several times recently, which is expected to have a positive impact on the company's performance in 2026. However, due to the uncertainty of the sustainability of disperse dye price fluctuations, it is temporarily impossible to predict the extent of the impact on the company's performance.
Downstream Pressure
With the rise in dye product prices, downstream printing and dyeing enterprises are also affected.
Gu Shujing analyzed that, on the one hand, dyes account for a high proportion of the processing costs in printing and dyeing, and the rise in raw material prices directly compresses the profit margins of enterprises, with cost pressures continuing to be prominent. On the other hand, the risk on the order side has intensified, as export orders generally have longer contract cycles, and after raw material price increases, there is a risk of performance losses, forcing enterprises to face the dilemma of renegotiating order prices or voluntarily giving up low-profit orders.
It is worth noting that the cost transmission capabilities of enterprises of different sizes show significant differentiation. Large printing and dyeing factories can transfer some pressure to downstream through annual pricing mechanisms or cost-plus models; while small and medium-sized printing and dyeing factories have weaker bargaining power and must bear more cost increase pressure on their own, further increasing operational difficulties.
Regarding the future trend of dye prices, Gu Shujing stated that in the short term, prices will maintain high-level fluctuations in the next 1-3 months. If intermediate prices continue to rise or supply contracts, new highs may be reached. In the medium term, over the next 3-12 months, as downstream cost pressures increase, prices may see some adjustments, but overall will be higher than historical averages. In the long term, the price center will be above the average level of the past 10 years, with the amplitude of fluctuations depending on macroeconomic trends and changes in downstream demand
(Editor: Dong Shuguang Reviewer: Wu Kezhong Proofreader: Yan Yuxia)

600352

002440

On March 11th, RTGF disclosed that due to the skyrocketing prices of key intermediate reducing agents, the price of disperse dye black has increased by approximately 24,000 yuan/ton, with the current quotation reaching 40,000 yuan/ton. Several dye companies, including Zhejiang Longsheng, have also significantly raised prices, mainly due to the rising costs of upstream intermediates and the arrival of the peak season in the textile printing and dyeing industry. Analysts pointed out that the surge in core intermediate prices is the main reason for the price increase, and that environmental policies and rising raw material costs have also driven up overall costs

"Crazy" Dyes: Intermediate Prices Soar by 300%!