[SDIC Securities Chemical & New Materials] Dye Update: H Acid Price Approaches 100k, Sufficient Groundwork for Peak Season Price Hikes 0728

English summary

# H Acid Price Hits 100,000/ton According to Baichuan Yingfu, on 7/28, Dachaidan Hexin Technology Co., Ltd.'s H acid unit is operating normally, with the latest ex-factory quote of H acid at 100,000 yuan/ton. # Intermediate prices remain high, and the concentrated pattern is hard to reverse. The current price of H acid, a core intermediate for reactive dyes, is 100,000 yuan/ton, up 150% since the beginning of this year, matching the historical high. According to Ranjiangfang, the price of reducing agents, the core intermediate for disperse dyes, has remained high at 100,000 yuan/ton for a long time, much higher than the 25,000 yuan/ton level in 2025. Recently, quotes have risen another 20% to 120,000 yuan/ton. The earlier loosening of dye prices may mainly be due to a game between high-cost new orders and low-cost old inventory under negative demand feedback. However, after consumption in April-May, low-cost inventory is expected to have bottomed out, and companies may be forced to switch to high-cost raw materials for dye production. At the same time, since the intermediate pattern is highly concentrated among large factories and leading companies with self-supporting facilities, given the good industry structure and strong pricing power, cost increases are no longer a burden, and price catch-up is being verified.…