Carbon Black: Negative Factors (June 12)
01 Carbon Black Index
According to data from TuDuoDuo, the carbon black price index was 7338 on June 12th, remaining stable compared to the previous trading day.
02 Carbon Black Market Price
03 Analysis of Factors Affecting the Carbon Black Market
1. Upstream Raw Materials: Coal tar prices in Shandong were 4050 yuan/ton; in Shanxi, 4090 yuan/ton; and in Hebei, 4050 yuan/ton. The domestic high-temperature coal tar market was mainly consolidating and observing. Due to the increasing number of failed auctions, a bearish sentiment gradually emerged in the market.
2. Carbon Black Supply: The operating rates of sample enterprises in the domestic carbon black market declined and adjusted. Some large factories in East China reduced their operating rates, while some small factories in Northwest China and Shandong were still undergoing maintenance. Affected by significant pressure to ship goods in the market, some enterprises still expected a further decline in their operating rates.
3. Downstream Demand: It is understood that the decline in rubber prices has weakened cost support, resulting in sluggish market demand. Price reductions and promotions have failed to boost purchasing sentiment. Short-term policies remain stable, and companies are mostly adjusting prices flexibly based on inventory. Semi-steel tire sales are slow, with only immediate demand transactions.
A slight recovery is possible after the college entrance examination and high school entrance examination, but the increase will be limited. All-steel tire supply is sufficient, and sales are average. Replacement demand is expected to increase slightly after the wheat harvest ends and temperatures rise.
04. Market Outlook
As of now, the price of raw material coal tar has fallen further, and further declines in raw material prices are expected. Cost support has weakened. Entering June, end-user demand has been weak, tire companies have reduced their purchases, and there is a clear resistance to high prices. Market sentiment is bearish, and quoted prices are falling. New order negotiations are stalled, and new orders for carbon black are expected to remain weak.
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