Carbon Black Market Weekly Review

Carbon Black Market Analysis

1.1 Carbon Black Market Price Analysis: Domestic carbon black prices saw a narrow upward trend at the end of this week. As of Thursday, prices in Shandong were 6,350 yuan/ton; in Shanxi 5,900 yuan/ton; in Hebei 6,450 yuan/ton; in Guangzhou 6,600 yuan/ton; and in Zhejiang 6,300 yuan/ton. Prices in most regions saw varying increases, ranging from 50 to 150 yuan/ton. The raw material coal tar market is showing a price-supporting trend, with favorable cost sentiment. Some major manufacturers still expect to push for price increases. New orders are currently under negotiation, making it increasingly difficult to achieve price increases. New orders for downstream tires are being priced, with upstream and downstream negotiations underway. New bidding prices for raw material coal tar remain a key guide. In the short term, new order quotations in the domestic carbon black market remain high.

1.2 Carbon Black Market Index Analysis

According to Tuduoduo data, the carbon black price index was 6,279.75 as of July 31, up 35% from the previous cycle.

2. Raw Material Market Analysis

2.1 Weekly Average Coal Tar Market Price Analysis

The domestic high-temperature coal tar market continued its sharp upward trend this period. With the final price increase of 300 yuan/ton for coal tar tar last week, deep-processing companies still have some profit margins. Furthermore, the supply and demand of coal tar on the market remains relatively tight. Consequently, market sentiment for price increases is high this week, and coking companies are eager to take advantage. Consequently, the starting price at Laigang's auction on Wednesday increased by 150 yuan/ton. Subsequently, driven by downstream demand, it ultimately rose by 200 yuan/ton.

Due to the relatively low prices in the region last week, this week's price increase includes some compensatory factors. The final negotiated price increase in Hebei reached 220 yuan/ton. The price increase in Shanxi has narrowed somewhat, and downstream factories have shown some sluggishness in purchasing at high prices. Therefore, pressure for coal tar prices to continue to rise is evident, and the final price increase for coal tar tar is expected to be closely watched.

2.2. Anthracene Oil Market Weekly Average Price Analysis

New contract prices in the domestic anthracene oil market have yet to be finalized this cycle. Auctions have been launched in major high-temperature coal tar producing areas, leading to a continued wide-ranging price increase. New bidding prices in the northwest region have risen, giving anthracene oil traders some confidence. Market sentiment is strong, while price increases in end-user carbon black prices appear weak, prompting cautious market entry. We anticipate upward potential in the anthracene oil market in the short term.

3. Carbon Black Market Forecast

Looking ahead to the next cycle, new contract prices in the domestic carbon black market will remain stable, while new contract prices in the raw material coal tar market will continue to rise. This will increase cost pressures, and new contract quotations in the carbon black market are expected to follow suit. However, downstream tire purchase prices remain low, leading to resistance to new orders at higher prices. This will increase market transaction pressures. We continue to monitor downstream purchasing intentions, as new orders are expected to push prices higher.

4. Carbon Black Industry N330 Profit Analysis

Carbon black market transaction prices remain stable. Meanwhile, raw material coal tar prices remained high and firm during the week, resulting in an overall loss-making carbon black market. As of now, the theoretical weekly profit of the carbon black industry is -600 yuan/ton, down 220 yuan from last week.

5. This Week's Market Operating Rate Statistics

5.1. Carbon Black Market Operating Rate Analysis

Operating rates of carbon black manufacturers in major producing areas have increased slightly, driving up carbon black market prices this week. Previously low orders are being delivered, and with rising raw material prices, expectations of future carbon black price increases are also increasing, increasing manufacturers' enthusiasm for operating.

5.2. Downstream Market Operating Rate Analysis

This week, China's semi-steel tire operating rate was 70%. China's full-steel tire operating rate was 59%. Some semi-steel and full-steel tire manufacturers are still in the final stages of production and will gradually suspend operations in the near future. An increasing number of manufacturers are undergoing maintenance, further dragging down the overall operating rate. At the end of the month, domestic and foreign sales will be relatively concentrated, which will to some extent benefit the reduction of finished product inventory.

6. This Week's Industry News

[Tire Giant Launches First Trial of Carbon Black Recycling in Racing Tires!] 

Sumitomo Rubber announced on July 29th that it will use recycled carbon black in some of its racing tires for the first time at the fourth round of the 2025 Autobacs Super GT series, held in Shizuoka Prefecture, Japan, from August 2nd to 3rd.

The tires containing recycled carbon black will be used in the GT300 class and are a key component of Sumitomo's Towagawa circular economy initiative. In January of this year, Sumitomo Rubber partnered with Mitsubishi Chemical Corporation to chemically recycle rubber waste generated during tire production and scrap tires.

According to the Carbon Black Industry Network, the process uses a coke oven to produce recycled carbon black, replacing some of the virgin carbon black typically used in tire compounds. Sumitomo Rubber noted that this system "converts rubber waste and used tires, currently burned as heat sources, into reusable resources" and has the potential to reduce carbon dioxide emissions.

Sumitomo Rubber also revealed plans to expand the use of recycled carbon black to some passenger car tires by 2025.

[Nano-level Conductive Carbon Black and Hydrogen Co-production Project Launched!]

The Mianyang Science and Technology City Gas Technology Research Center (hereinafter referred to as the "Research Center") was recently established and officially opened. The research institute will focus on three key areas: gas transmission and distribution and intelligent development, practical applications of integrated energy, and the research and development of new energy and new materials.

Its establishment aims to promote breakthroughs in key technologies and industrial transformation. This not only marks a key step for Mianyang in energy technology innovation, but also provides solid technical support for the development of the Chengdu-Chongqing Twin Cities Economic Circle, significantly contributing to the region's green and low-carbon development. 

The research center's first project has already confirmed its partners: China University of Petroleum (Beijing) and AVIC Sichuan Panhua Aviation Instruments and Electrical Co., Ltd. The three parties will collaborate on the development of a technology for producing nano-level conductive carbon black and co-producing hydrogen using plasma methane cracking.

This technology utilizes plasma in a high-temperature ionization environment to directly decompose methane into nano-sized conductive carbon black and high-purity hydrogen, generating zero carbon emissions.

According to the Carbon Black Industry Network, the head of the research center explained the advantages of this technology, stating, "This technology is both environmentally friendly and highly efficient and economical." The nano-sized conductive carbon black produced by the project boasts uniform particle size and outstanding conductivity, meeting the demands of high-end applications such as new energy batteries, specialty rubbers, and conductive coatings. Furthermore, the hydrogen produced as a byproduct boasts a purity exceeding 99.9% and can be directly used in fuel cells, chemical synthesis, and green metallurgy, thereby establishing a "gas-carbon" co-production circular economy model.

[Annual Production of 40,000 Tons of Silica, Second Phase Acceptance Completed!]

Recently, Fujian Dexingyuan Chemical Co., Ltd. announced the completion of the environmental protection acceptance monitoring report for its 40,000-ton annual production line for highly dispersed precipitated hydrated silica (Phase II, 20,000-ton production line).

Fujian Dexingyuan Chemical Co., Ltd. is a specialized manufacturer of precipitated hydrated silica (precipitated white carbon black). According to the Carbon Black Industry Network, in April 2014, the former Xinzhongtian (Fujian) Chemical Co., Ltd. was restructured and renamed Fujian Dexingyuan Chemical Co., Ltd., and was approved to continue using the original environmental impact assessment.

This acceptance involves an investment of 40 million yuan, with a total environmental protection investment of 3.1 million yuan. After this acceptance, the plant will achieve an annual production capacity of 40,000 tons of highly dispersed precipitated hydrated silica.

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