Carbon Black Monthly - August 2026 Issue

1. Carbon Black Market Analysis

In August, carbon black market prices showed a significant upward trend. As of August 28, the monthly average mainstream quotation for N330 carbon black was: Shandong region 7,655 yuan/ton; Shanxi region 7,435 yuan/ton; Hebei region 7,680 yuan/ton; Guangzhou region 7,750 yuan/ton; Zhejiang region 7,655 yuan/ton.

This month, driven continuously by cost factors, new order quotations rose successively. The fluctuating rise of raw material coal tar became the core factor dominating the market trend. However, the demand side was not optimistic. Tire manufacturers mainly adopted a procurement strategy based on actual needs, and some procurement demand had already been locked in before the sharp rise in carbon black prices. Therefore, after prices were pushed up at the end of the month, downstream purchase volumes declined significantly. Other downstream users also maintained only essential small-quantity procurement, with insufficient willingness to chase rising prices. The strong cost side and weak demand formed a tug-of-war, increasing pressure on the carbon black market. In the short term, before raw material prices show a significant decline, the room for carbon black producers to lower prices is limited, and the market is likely to maintain a firm pricing trend.

Market Outlook

Looking ahead to next month, the carbon black market price is expected to maintain a high-level fluctuation pattern. At the beginning of the month, the market will continue the previous high-level trend. Raw material coal tar will see new order prices consolidate at high levels supported by inelastic demand, and the cost side will remain strong, continuing to favor the carbon black market. Downstream tire manufacturers will maintain essential procurement, providing limited demand-side support. However, overall, driven by the cost side, carbon black new orders will continue to run firm.

Monthly Average Price Comparison

2. Upstream Raw Material Market Analysis

2.1 High-Temperature Coal Tar Market Analysis

In August, the domestic high-temperature coal tar market first rose, then fell, then rose again, overall continuing an upward trend. Although there was a brief one-week pullback mid-month, the market quickly stabilized and rebounded, returning to the upward track. The supply side was the core driver of this round of increases. Coking enterprises fell into comprehensive losses, with some regions approaching the cash-flow loss line. The loss pressure forced independent coking enterprises to proactively reduce operating rates, and the capacity utilization rate across the full sample continued to decline, tightening coal tar supply week by week. The demand side showed strong resilience. Deep processing enterprises were in good profit conditions, and with the maintenance season over, operating rates continued to climb. Although carbon black enterprises had been in a long-term loss state with some maintaining low-load production, the off-season had not yet arrived, and overall operating rates remained at high levels, maintaining stable inelastic procurement of coal tar. The convergence of supply contraction and resilient demand gradually tightened circulating market resources, providing solid fundamental support for coal tar price increases. The market overall continued its upward trend this month.

2.2 Anthracene Oil Market Analysis

In August, the anthracene oil market showed a V-shaped trajectory of "decline then rise," with the overall average price rising month-on-month. In the first ten days, strong raw materials provided cost support, deep processing operating rates rose and supply increased, and producers actively pushed prices up. However, carbon black producers resisted high prices, and hydrogenation demand was sporadic, limiting the increase. In the middle of the month, the market reversed rapidly, with prices falling sharply as producers offered discounts to sell. Downstream procurement was sluggish, and carbon black new order negotiations were deadlocked. After mid-month, raw materials strengthened again, combined with a slight decline in operating rates and reduced supply, anthracene oil prices rebounded significantly with expanding gains. At the end of the month, the upward momentum slowed, and regional performance diverged — Shandong saw significant catch-up gains, while other regions saw minor follow-up gains, narrowing regional price spreads. Carbon black producers faced difficulties in taking orders and compressed profits, with downstream buying at low volumes and bargaining on prices, further constraining upward room. Overall, the August anthracene oil market saw prominent supply-demand gaming, with cost-side support driving prices higher, while weak terminal demand became the core factor limiting the increase.

3. Carbon Black Industry Profit Statistics

In August, the profit margin of the carbon black market narrowed. During the period, the increase in carbon black market prices was weaker than the increase in raw material prices, and cost-side pressure increased, leading to a reduction in carbon black industry profits. Taking N330 from Shandong-region carbon black producers as an example, the theoretical average profit for the carbon black industry in August was 22.25 yuan/ton.

4. Monthly Operating Rate Statistics

4.1 Carbon Black Market Operating Rate Analysis

In August, the carbon black market operating rate was 66%, a slight decline month-on-month. Some producers in Shanxi underwent maintenance, and some in Shandong also had maintenance through the end of the month. Major producers conducted scheduled line-by-line maintenance rotations. Market operating pressure was significant, and plant operating rates were low. Overall, the August carbon black plant operating rate showed a narrow decline.

4.2 Downstream Market Operating Rate Analysis

In August, the operating rate of Chinese semi-steel tires was 65%, and the operating rate of Chinese all-steel tires was 65%. Looking at operating conditions, the number of sample enterprises undergoing maintenance decreased during the month. Combined with increased production scheduling for semi-steel winter tires, some all-steel tire enterprises moderately increased production to ensure supply, and operating rates rose month-on-month. However, affected by high raw material price pressure, production pressure on enterprises increased. Combined with shipments falling short of expectations, the industry as a whole continued production control, constraining the magnitude of operating rate increases.

5. Production

China's carbon black production in August 2026 is estimated at 539,000 tons, down 0.37% month-on-month.

6. Import and Export Data and Trend Charts

According to customs data, in July, China's carbon black import volume was 22,300 tons, up 4.48% month-on-month and down 1.22% year-on-year. The cumulative import volume was 154,300 tons, down 25.74% compared to the same period last year.

According to customs data, in July, China's carbon black export volume was 121,100 tons, down 15.10% month-on-month and up 18.58% year-on-year. The cumulative export volume was 780,600 tons, up 15.76% compared to the same period last year.

7. Industry News

Haifeng Tire Bankruptcy Liquidation Enters Final Stage, 12-Year Project Formally Concludes

On August 26, the administrator of Haifeng Tire Co., Ltd. submitted a "Report on Requesting the Court to Rule on Terminating the Bankruptcy Procedure" to the Weifang Binhai Economic and Technological Development Zone People's Court, applying for the court to rule on terminating the bankruptcy liquidation procedure. This tire enterprise, once planned for an annual capacity of 12 million radial tires, has formally entered the judicial-level final stage after more than a decade of twists and turns.

On September 9, 2024, the Weifang Intermediate People's Court of Shandong Province issued Civil Ruling (2024) Lu 07 Bankruptcy Application No. 15, ruling to accept the bankruptcy liquidation application of Qingdao Jiaozhou Nanguan Jian'an Co., Ltd. against Haifeng Tire, and transferred the case to the Weifang Binhai Economic Zone Court for trial. On November 1 of the same year, the court appointed Shandong Guozong Law Firm as the administrator for Haifeng Tire. On August 21, 2026, the court issued Civil Ruling (2024) Lu 0792 Bankruptcy No. 3-II, ruling to approve the "Property Distribution Plan (Adjusted Plan)." The administrator stated that property distribution had been completed according to the plan and requested the court to rule on terminating the bankruptcy procedure, while retaining the administrator to continue handling related follow-up work. Haifeng Tire was established in the Weifang Binhai Economic Zone in 2012 and was once a key local industrial project, with a planned total investment of 2 billion yuan and a target of building a production base for 12 million radial tires annually, with expected annual revenue of 2.4 billion yuan. However, due to funding issues, the project construction stalled and never went into production. From a highly anticipated major industrial project to bankruptcy and termination, Haifeng Tire's conclusion is a microcosm of the deep reshuffling of the domestic tire industry.

Carbon Black Giant Invests 3.29 Billion Rupees in Acetylene Carbon Black

Recently, Indian carbon black producer PCBL (formerly Phillips Carbon Black) announced that its proposed acetylene carbon black project has received government approval under India's Electronic Component Manufacturing Scheme (ECMS). The project involves a total investment of 3.29 billion rupees, focusing on localizing the production of high-end conductive materials for lithium batteries and addressing the gap in India's new energy battery key raw material supply chain.

PCBL Chemicals is part of India's RP-Sanjiv Goenka Group, founded in 1960. It is India's largest carbon black producer and the world's seventh-largest carbon black manufacturer. The company has five major production bases in India, with products sold to more than 50 countries worldwide, covering two core categories: rubber carbon black and specialty carbon black.

In terms of capacity, with the 90,000 tons/year rubber carbon black expansion project at its Tamil Nadu plant successfully commencing production in Q4 FY2026, PCBL Chemicals' total built carbon black capacity reached 880,000 tons/year as of the end of FY26, including 112,000 tons/year of specialty carbon black capacity. According to the company's expansion plan, after the 20,000 tons/year specialty carbon black line at Mundra comes onstream, total capacity will increase to 900,000 tons/year in FY27. The company has also set a medium-term strategic goal of exceeding 1 million tons/year of total carbon black capacity by FY28, continuously consolidating its scale advantage in the global carbon black industry.

The approved acetylene carbon black project focuses on high-end acetylene carbon black, an indispensable core conductive material for lithium-ion battery manufacturing, which can also be widely used in various high-end industrial applications.

For a long time, India has been highly dependent on imports for the specialty chemical raw materials needed for high-end power battery manufacturing, with insufficient supply chain stability and self-controllability. The implementation of this acetylene carbon black project will effectively improve India's local advanced materials industry ecosystem, build a localized supply system for new energy core raw materials, significantly reduce the battery industry's import dependence, implement the local manufacturing development strategy, and enhance the resilience of the industrial chain and supply chain.

For PCBL Chemicals, the approval of this ECMS project is of great significance. As a key move in the company's expansion into the battery new materials sector, the project will help the company move beyond the traditional rubber carbon black segment and deeply enter the global industrial chain of power batteries and high-end energy storage advanced materials, optimizing its product structure and increasing the proportion of high-value-added products. It will also create a large number of skilled employment opportunities locally, serving as an important milestone in the company's transformation and upgrading.

Currently, official public information has not yet disclosed the specific design capacity of this 3.29 billion rupee acetylene carbon black project. It is worth noting that PCBL previously disclosed a 4,000 tons/year acetylene carbon black construction plan in investor communications, but there is no public information confirming whether this plan is the same as the ECMS-approved project. The specific capacity information remains subject to the company's subsequent official disclosures.

Sinopec Quanzhou Petrochemical Publishes Patent for Eco-Friendly Carbon Black Feedstock Oil Deep Purification

On July 28, information from the National Intellectual Property Administration showed that Sinopec Quanzhou Petrochemical Co., Ltd. published a patent titled "A Deep Purification Method for Eco-Friendly Carbon Black Feedstock Oil Based on Bio-Based Additives."

According to the patent abstract, the invention discloses a deep purification method for eco-friendly carbon black feedstock oil based on bio-based additives. It uses bio-based surfactants, bio-based chelating agents, primary flocculants, and co-settling agents to form a composite flocculation system with high bio-based content, which is applied to the deep purification of carbon black feedstock oil. The invention uses highly biodegradable bio-based additives to construct the composite flocculation system, which not only achieves excellent purification effects but also significantly reduces the ecological toxicity of the treated oil. The entire process is environmentally friendly and is particularly suitable for carbon black production scenarios with strict environmental requirements.

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