Dye Prices Surge: H Acid Nears RMB 120,000/Ton; Runtu, Jihua H1 Profits Seen Up 334% and 1259%

Dye prices rose sharply in 2026, with the surge accelerating since July. Disperse black dye has accumulated a gain of RMB 4,000 per ton, with current market transaction prices approaching RMB 25,000 per ton, a fresh annual high. Reactive dye prices have also moved higher, rising from RMB 22,000 per ton at the start of the year to RMB 23,000 per ton. The key intermediate H acid has climbed from RMB 45,000 to RMB 120,000 per ton, while reducing agent prices have risen from RMB 25,000 per ton at the end of 2025 to between RMB 70,000 and RMB 100,000 per ton, an increase of nearly 300%. These intermediates account for a significant share of dye production costs, directly pushing up overall dye prices.

Industry leaders have delivered standout results. Jihua Group, leveraging its integrated H acid capacity, expects first-half net profit attributable to shareholders to rise by more than 1259% year on year, while Runtu Co. projects a gain of up to 334%. By contrast, dye producers lacking raw material self-sufficiency face a passive position amid the price surge, with some compressing short-term margins to retain customers.

Tightening supply is the main driver of the price increases. Stricter environmental and safety regulation in China has accelerated the elimination of outdated capacity and raised industry concentration. China's effective H acid capacity has fallen below 60,000 tons, leaving a supply gap of more than 10%. Globally, extreme heat has reduced output in India, while recurring tensions in the Middle East have affected sulfur supply. These factors have jointly intensified intermediate supply tightness and transmitted pressure to dye prices.

The impact on the downstream textile industry is differentiated. Traditional printing and dyeing mills, facing overcapacity and weak downstream demand, struggle to pass on costs and see their margins compressed. Fabric companies, for which dyes account for a relatively small share of total costs, are less affected overall, and some focused on mid-to-high-end functional fabrics have greater capacity to absorb cost increases.