Price of H acid increases in 2016

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Price of H acid increases in 2016

The key material of reactive dyes has high concentration of H acid, low production yield, high waste water and difficult to control, so the global production capacity is gradually transferred from developed countries to developing countries. China’s production capacity accounts for more than 80% of global H acid production, mainly in Hubei Chu Yuan, Runtu shares, Zhejiang Jihua four or five enterprises.
Recently, the supply side has a contraction, resulting in tight supply of H acid. On the one hand, Hubei Chuyuan due to environmental issues suspend production for rectification; the other hand, Zhejiang Jihua due to technological transformation did not affect the production through the impact of environmental impact assessment. 2013 – 2014 Runtu shares H acid stop during the rectification period, H acid prices from 30,000 / ton soared to 16 million / ton. It is speculated that although the last week H acid rose more than 30%, but there is still a huge upside. H acid is the key intermediate of reactive dyes, will drive the price of reactive dyes.
Disperse dye industry in the oligopoly pattern, patents and intermediates to become industrial throat, leading enterprises led the concentration of disperse dyestuff industry, Zhejiang Longsheng, Runtu shares and Zhejiang Jihua accounted for more than 60% market share, leading enterprises on the price Has an absolute influence. Disperse black accounted for 40% to 50% of the share of disperse dyes, the production of patents owned by Zhejiang Longsheng all. As the key raw material of disperse dyes, the production capacity of the diamines and the reducing substances is mainly concentrated in Zhejiang Longsheng. The company can control the price of disperse dyes through patent authorization and control of upstream raw materials.

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