Guotai Junan Securities: Stricter safety and environmental protection policies lead to continued rise in dye prices.

Guosen Securities published a research report stating that the tightening of safety and environmental protection policies has significantly raised the barriers to entry in the dye industry and accelerated the elimination of outdated production capacity, leading to a continuous increase in market concentration; due to the tightening supply of key intermediates, such as reducing agents and H-acid, disperse dyes and reactive dyes are expected to see substantial price increases in March and July 2026, respectively, while the proportion of dyes in garment costs is very low, and price transmission is smooth.