# Dyes: Correlation Prices it moves with, and why Source page: https://www.materialinsights.org/chemicals/dyes/correlation/ Synthetic dyes are made from aromatic intermediates such as aniline, naphthalene derivatives and H-acid, produced by nitrating and sulphonating benzene and similar aromatics. Supply is concentrated in China and India, and demand tracks textile output. Price index **US PPI: synthetic organic dyes** index (BLS base period =100) · monthly, Jan 2006 to Sep 2026 #### What its price moves with Selected link ##### Dyes and Benzene Monthly changes 0.00 little or none correlation 12-month changes 0.12 little or none correlation Last 5 years -0.07 monthly changes Lead or lag +3 mo Benzene tends to lead by 3 months (r 0.16) Price function, Jan 2006 to Sep 2026 Dyes ≈ 101.9 × (Benzene)^0.00 R² 0.00 On this fit, a 10% higher benzene price goes with a 0.0% higher dyes price over the long run. Units: index (BLS base period =100) and index (BLS base period). The fit is loose, so treat the function as a rough guide. Chart: Dyes and Benzene prices rebased to 100 at Jan 2006, log scale Both prices rebased to 100 at Jan 2006, on a log scale so equal percentage moves look the same size. Chart: Dyes price against Benzene price, monthly, log scales, with fitted line Each dot is one month; paler dots are older (2006), darker dots recent (2026); the ringed dot is the latest month. The dashed line is the fitted price function. Both axes are logarithmic. Chemical [Bz Benzene](https://www.materialinsights.org/chemicals/benzene/)Aromatic feed 0.00 Most dye intermediates start from benzene or naphthalene. Yet the US dye index barely tracks the petrochemical proxy, with monthly moves at 0.00 and yearly at 0.12, because global dye prices are set by Asian supply and pollution curbs. little or none co-movement month to month · 249 months Show charts Chemical [H2SO4 Sulphuric acid](https://www.materialinsights.org/chemicals/sulphuric_acid/)Sulphonation reagent 0.07 Dye intermediates such as H-acid and vinyl sulphone need large amounts of sulphuric acid and oleum. The acid index correlates weakly with dyes, at 0.07 monthly and 0.33 yearly, as acid is a small part of dye cost. little or none co-movement month to month · 225 months Show charts Chemical [Pig Organic pigments](https://www.materialinsights.org/chemicals/pigments/)Sister product 0.12 Dyes and organic pigments share many intermediates and are made by the same firms, especially in Gujarat and China. Even so, the two US indexes correlate only at 0.12 for monthly moves and 0.35 for yearly moves. little or none co-movement month to month · 249 months Show charts Chemical [PSF Polyester fibre](https://www.materialinsights.org/chemicals/polyester_fibre/)Main end use 0.10 Disperse dyes colour polyester, the largest textile fibre, so polyester output drives dye demand. The polyester index correlates with dyes at 0.10 monthly and 0.49 yearly, the shared textile cycle showing only over longer periods. little or none co-movement month to month · 249 months Show charts Commodity [Ct Cotton](https://www.materialinsights.org/commodities/cotton/)Main end use 0.05 Reactive dyes colour cotton, and Indian dye makers sell heavily to cotton textile mills. Cotton prices follow harvests more than mill activity, so monthly moves correlate at only 0.05, rising to 0.23 over the last five years. little or none co-movement month to month · 249 months Show charts How to read these numbers **Correlation of monthly changes** (the number in the coloured pill) compares how much each price moved, month by month, since 2006 or the first month both series exist. It runs from −1 to +1: near +1 the two usually rise and fall in the same months, near 0 there is no link, and a negative number means they tend to move in opposite directions. Above 0.7 is strong, 0.4 to 0.7 moderate, 0.2 to 0.4 weak. **12-month changes** compare year-on-year moves, which shows whether two prices share the same cycles even when the month-to-month noise differs. **Price function** is a straight-line fit of the two prices on logarithmic scales: price ≈ k × (partner price)^β. β is how much this price moves, in per cent, for a 1% move in the partner over the whole period, and R² is the share of the variation the fit explains. Two prices that both drift up with inflation can fit well without any real link, so read it together with the monthly correlation. **Lead or lag** checks whether the monthly correlation is clearly higher when one price is shifted by 1 to 6 months. Correlation is not cause. The reasons on each card explain the economic link; the numbers show how strongly it has shown up in prices. Proxy series are US producer price indexes or related prices and can blur the real link. Data: World Bank Commodity Price Data (Pink Sheet), October 2026; US Bureau of Labor Statistics producer price indexes, IMF primary commodity prices and US EIA prices via FRED, Federal Reserve Bank of St. Louis, retrieved November 2026. Calculations by this site. ## Other sections - [Summary](https://www.materialinsights.org/chemicals/dyes/index.md) - [Overview](https://www.materialinsights.org/chemicals/dyes/overview/index.md) - [Production route](https://www.materialinsights.org/chemicals/dyes/routes/index.md) - [Production](https://www.materialinsights.org/chemicals/dyes/production/index.md) - [Feedstocks](https://www.materialinsights.org/chemicals/dyes/feedstocks/index.md) - [Cycles](https://www.materialinsights.org/chemicals/dyes/cycles/index.md) - [Trading](https://www.materialinsights.org/chemicals/dyes/trading/index.md) - [Movement](https://www.materialinsights.org/chemicals/dyes/movement/index.md) - [Regulation](https://www.materialinsights.org/chemicals/dyes/regulation/index.md) - [Characteristics](https://www.materialinsights.org/chemicals/dyes/characteristics/index.md) - [Emissions](https://www.materialinsights.org/chemicals/dyes/emissions/index.md) - [Relationships](https://www.materialinsights.org/chemicals/dyes/links/index.md)