CITIC Securities: The price of dye core intermediates has risen, optimistic about the bottoming out and reversal of the dye industry.

According to the research report of CITIC Securities, the core intermediate of dispersed dyes, reduced substances, has seen a significant price increase, soaring more than 50% from 25,000 yuan/ton last year to 38,000 yuan/ton. Historically, the price elasticity of reduced substances has been high, reaching over 100,000 yuan/ton at one point. With highly concentrated supply of reduced substances, we are optimistic about the sustainability of future price increases. The price increase of reduced substances may drive further increases in dye prices, and accelerate industry consolidation in the medium to long term. We are bullish on integrated leading companies with core intermediates such as reduced substances.