Carbon black: Market may decline (June 8)
01 Carbon Black Index
According to data from TuDuoDuo, the carbon black price index was 7380 on June 8th, remaining stable compared to the previous trading day.
02 Carbon Black Market Price
03 Analysis of the Impact on the Carbon Black Market
1. Upstream Raw Materials: Coal tar prices in Shandong were 4200 yuan/ton; in Shanxi, 4260 yuan/ton; and in Hebei, 4200 yuan/ton. The domestic high-temperature coal tar market was mainly consolidating and observing. With continuous market increases, downstream buying enthusiasm weakened, leading to a dilemma of whether prices would rise or fall.
2. Carbon Black Supply: The operating rates of sample enterprises in the domestic carbon black market saw narrow adjustments. Some large plants increased their operating rates. Maintenance shutdowns at some enterprises in North and East China offset some of the data from plant start-ups and shutdowns. Overall, the operating rate of plants fluctuated within a limited range, showing a narrow upward trend.
3. Downstream Demand: It is understood that tire companies' export orders are falling short of expectations, and domestic sales are sluggish. Overall, the industry is experiencing slow inventory reduction, leading to an increase in tire company inventories. Under pressure from both production and sales, some companies are considering production cuts or shutdowns, dragging down overall tire output.
04. Market Outlook
As of now, the price increase in the raw material coal tar market has narrowed, and a weakening trend is expected this week. Cost support for carbon black is weakening, coupled with downstream tire buyers' strong resistance to high prices. Despite the price increase, actual transaction volume is limited, and negotiation pressure is high. Both supply and demand are weakening, and the carbon black market may see a correction.
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