Carbon Black Weekly: As Costs Loosen, Prices Begin to Slip

Carbon Black Market Analysis

1.1 Carbon Black Price Analysis

1.1 Carbon black price analysis: Domestic carbon black prices remained relatively stable this week. As of Thursday, prices stood at CNY 7,500/ton in Shandong, CNY 7,300/ton in Shanxi, CNY 7,500/ton in Hebei, CNY 7,600/ton in Guangzhou and CNY 7,500/ton in Zhejiang. This period, auction prices from major production areas of the domestic high-temperature coal tar market were released one after another, all falling sharply, weighing visibly on costs. Downstream buyers were largely wait-and-see, inquiry volumes declined, and enterprises mainly worked down their own inventories. With raw material prices falling and demand weak, sentiment for lower new-order quotes is building.

1.2 Carbon Black Index Analysis

According to Toodudu's data calculations, the carbon black price index stood at 7,459 as of August 13, unchanged from the previous week.

2. Raw Material Market Analysis

2.1 Weekly Average Price Analysis — Coal Tar Market

The domestic high-temperature coal tar market fell notably this period. Last weekend, new-order prices for coal tar pitch were finalized with another CNY 100/ton increase, but the increase lagged the raw material (coal tar) rise, and failed auctions at Anhui Linhuan and Wuhai Guangju reinforced expectations of a decline this week. Deep-processing and carbon black enterprises are now in loss-making territory, and sales of downstream products were generally mediocre, so downstream buyers are pressing prices hard. Bearish factors are gradually gaining the upper hand, and the market has entered a short-term downward channel.

2.2 Weekly Average Price Analysis — Anthracene Oil Market

The domestic anthracene oil market saw mixed gains and losses this period. The downtrend in high-temperature coal tar prices has become clear-cut, with considerable room for further declines, dragging costs noticeably. The downstream carbon black market, also influenced by raw material trends, is pressing prices hard, adding to bearishness in the anthracene oil market. Squeezed from both the feedstock side and the demand side, the probability of lower actual transaction prices is gradually increasing.

3. Carbon Black Outlook

Looking to next week: new-order prices in the coal tar market are set to fall further. After cost prices decline, bearish sentiment will prevail, downstream buyers will mostly wait for lower prices and accept goods only at low prices, and bearish factors are evident. New orders are expected to trend down.

4. N330 Profit Analysis

Taking Shandong as an example: new-order prices in the coal tar market fell substantially, giving cost relief to the market, while carbon black new-order prices remain undecided and mostly follow earlier quotes, leaving negotiations deadlocked. Theoretically, the carbon black market is currently profitable: the theoretical weekly profit for the carbon black industry stands at CNY 167.5/ton, up CNY 341/ton from the previous period.

5. Operating Rates This Week

5.1 Carbon Black Operating Rates

The operating rate of sampled carbon black producers was 66%, edging up. A plant in Shanxi resumed production after maintenance, a major plant in Shandong was idled due to unexpected reasons, and plants in other regions ran at low loads. Overall, operating rates rose slightly, but only to a limited extent.

5.2 Downstream Operating Rates

The operating rate of China's PCR (semi-steel radial) tire plants was 65%, and that of TBR (all-steel radial) tire plants was 64%.

Operating rates rose slightly this period, as facilities that had been idled for maintenance resumed production one after another, lifting the industry's overall operating rate. However, other plants implemented maintenance plans during the week, capping the increase, and the industry overall kept capacity under controlled production.

6. Industry News This Week

Hami Coal Tar Project Prepares for Construction

Hami City continues to push the upgrading of its coal chemical industry chain. Recently, the '300,000 tons/year coal tar deep-processing and 1.8 million tons/year lignite comprehensive utilization project' has completed all preliminary approvals and officially entered the construction preparation stage.

According to the Carbon Black Industry Network, the project is located in Hami's New Industrialization Demonstration Zone with a total investment of CNY 350 million. Based on the dual feedstocks of the region's abundant lignite resources and coking by-product coal tar, it builds an integrated process chain of 'lignite low-temperature retorting — gas purification — tar refining — high-end chemical synthesis'. Core facilities include: a 1.8 million tons/year lignite low-temperature retorting system, a 300,000 tons/year full-distillate hydro-upgrading unit for coal tar, a light aromatics separation unit, an asphalt-based carbon material precursor production line, and supporting utilities. At full capacity, the project will produce 120,000 tons/year of high-quality fuel oil components, 52,000 tons/year of industrial naphthalene/phenolic chemicals, 30,000 tons/year of needle coke feedstock and 180 million m³/year of clean gas, significantly improving local resource conversion and added value.

Land leveling, temporary facility construction and detailed engineering design have all been completed in parallel, and equipment procurement is fully underway, with open solicitation of bidding intentions for key process and automation equipment such as reactors, hydrocracking catalysts, intelligent DCS control systems, high-efficiency heat exchanger units and explosion-proof electrical packages.

Construction is planned to start in Q4 this year; main works and core equipment installation are expected to take 12 months, with supporting systems advancing in parallel. The project as a whole is scheduled to be completed and enter trial operation in Q4 2027.

Changxing Black Cat's 240,000-Ton Carbon Black Project Enters Preliminary Filing Stage

Liaoning Changxing Black Cat Carbon Materials Technology Co., Ltd.'s 240,000 tons/year carbon-based materials project is progressing through preliminary filing procedures.

Located in Jiaoliudao Subdistrict, Xizhongdao Petrochemical Industrial Park, Changxing Island, Dalian, the project has a total investment of about CNY 1.771 billion and a planned annual carbon black capacity of 240,000 tons. Using petroleum-based and coal chemical by-products as feedstocks, it will produce carbon black via the oil-furnace pyrolysis process, without dry granulation. Covering about 367 mu (approx. 24.5 hectares), it will build the main carbon black production units together with warehousing, off-gas comprehensive utilization systems and utility auxiliary facilities.

The project vehicle, Liaoning Changxing Black Cat Carbon Materials Technology Co., Ltd., was established by Black Cat Carbon Black Inc. (Black Cat) together with its wholly-owned subsidiary Jiangxi Black Cat Singapore Co., Ltd., with Black Cat holding 86%. The project company was registered in April 2026 with registered capital of CNY 500 million. Benefiting from the park's location next to a major refining and chemical base, the project will enjoy stable feedstock supply and lower logistics costs.

In terms of industry landscape, domestic rubber-grade carbon black capacity is concentrated in East and Southwest China, while large-scale carbon black facilities in the north are relatively scarce. Once this project is in place, it will fill Black Cat's capacity gap in the northern market, optimize its national production base layout, and further strengthen supply assurance for northern tire makers.

So far, the project is still in the preliminary filing stage; environmental assessment publicity and engineering design tendering have not yet started.

Chaoyang Black Cat's Carbon Black Workshop Named '2026 Provincial-Level Digital Workshop'

Liaoning Provincial Department of Industry and Information Technology recently released the 2026 provincial-level digital workshop list, and the digital carbon black production workshop of Chaoyang Black Cat Carbon Black Co., Ltd. was selected.

In recent years, under the guidance of Black Cat Group and Black Cat, Chaoyang Black Cat has kept increasing digital investment, building an integrated intelligent management and control platform that incorporates IoT technology and connects the data chain across raw material conveying, reaction production, pelletizing and collection, and finished product warehousing. The central control system enables real-time monitoring of process parameters, intelligent adjustment and automatic anomaly alerts, replacing traditional manual duty shifts. The platform also features intelligent equipment O&M, online energy monitoring and safety alert functions, making the whole production process monitorable, traceable and optimizable.

Being named a provincial-level digital workshop is an important achievement of the company's in-depth push for intelligent and digital transformation. Chaoyang Black Cat will continue to improve its digital process knowledge base, optimize equipment intelligent alert models, and accelerate the green, intelligent and high-end transformation, providing a replicable model for quality and efficiency improvement in the traditional carbon black industry.