Chinese dye manufacturers 浙江龙盛 (Zhejiang Longsheng) and 闰土股份 (Runtu) both hit daily limit-up on June 22, with 浙江龙盛 closing at 12.06 yuan per share (total market cap 39.2 billion yuan) and 闰土股份 at 10.99 yuan per share (total market cap 12.4 billion yuan). The surge followed reports that India, the world's third-largest dye producer, is experiencing a century-rare heatwave with temperatures exceeding 45°C in multiple regions, causing production disruptions in key textile hubs including Surat, Tirupur, and Panipat. China dominates global dye production with 70-75% of total output, and institutional analysis cited by Securities Times suggests tightening global supply due to India's heat-related output cuts may create export substitution opportunities for domestic Chinese manufacturers.
浙江龙盛 and 闰土股份 Stock Performance on June 22
浙江龙盛 (stock code 600352) closed at 12.06 yuan per share with a total market capitalization of 39.2 billion yuan. 闰土股份 (stock code 002440) closed at 10.99 yuan per share with a total market capitalization of 12.4 billion yuan. Both stocks reached their daily limit-up on June 22.
India Heatwave Disrupts Textile Production in Key Regions
India is currently experiencing a century-rare heatwave with temperatures exceeding 45°C in multiple locations. According to reports, core textile clusters in Surat, Tirupur, and Panipat have seen partial factory output reductions and workers returning to their hometowns, resulting in significant production disruptions.
Reducing Agent Intermediate Prices Surge Nearly 300% Since Late 2025
The key dispersed dye intermediate "reducing agent" (2-amino-4-acetamidobenzyl ether) has seen continuous price increases since late 2025. As of March 2026, market quotations reached 100,000 yuan per ton, representing a nearly 300% increase. The reducing agent is a critical raw material for producing blue, black, and purple series dispersed dyes. Its production involves nitration and hydrogenation processes with extremely high safety and environmental requirements, and only a few companies nationwide including 浙江龙盛 and 闰土股份 can maintain stable mass production.
Rising reducing agent prices have pushed up dye production costs and subsequently driven dye price increases. According to Longzhong Information data, on June 17, the ex-factory quotation for dispersed dye (dispersed black ECO 300%) was 35 yuan per kilogram, with mainstream negotiated prices in Zhejiang province at 25 yuan per kilogram. Based on the quoted price range, the year-on-year increase in ex-factory quotations for dispersed black ECO 300% was approximately 25% to 67%.
China's Top Five Dye Producers Control 77% of Dispersed Dye Capacity as of End-2025
China's dye industry has formed a highly concentrated oligopolistic competition structure after years of iterative upgrades. As of the end of 2025, the combined dispersed dye production capacity of the top five companies—浙江龙盛, 闰土股份, and 吉华集团 (stock code 603980)—accounted for approximately 77% of the total. 浙江龙盛 has an annual dye production capacity of 330,000 tons, maintaining the top domestic market share. 闰土股份 has an annual dye production capacity of nearly 238,000 tons, holding a stable second-place market share.
Shenwan Chemical stated that current industry-wide dye inventories are at historic lows, with most companies' reducing agent inventories essentially depleted, and traders and dye factories holding dye inventories of less than 15 days. The institution also noted that the third quarter is the traditional peak demand season for dyes, and comprehensive price increases starting in July are basically confirmed. Dispersed black dye currently prices at approximately 21,000 yuan per ton, and is expected to rise above 30,000 yuan per ton in the third quarter, with leading enterprises poised to achieve simultaneous growth in volume and profit.
FAQ
What caused 浙江龙盛 and 闰土股份 to hit limit-up on June 22?
Both stocks hit daily limit-up on June 22 following reports that India's century-rare heatwave with temperatures exceeding 45°C is disrupting dye production in key textile hubs including Surat, Tirupur, and Panipat. India is the world's third-largest dye producer, and the production disruptions raised expectations of tightening global dye supply, benefiting Chinese manufacturers who control 70-75% of global output.
How much did the reducing agent intermediate price increase since late 2025?
The reducing agent (2-amino-4-acetamidobenzyl ether), a key intermediate for dispersed dyes, saw continuous price increases since late 2025. As of March 2026, market quotations reached 100,000 yuan per ton, representing a nearly 300% increase. This price surge has pushed up dye production costs and driven dye price increases of approximately 25% to 67% year-on-year as of June 17.
