Carbon Black Weekly Report: Cost Dragging Down
Carbon Black Market Analysis
1.1 Carbon Black Market Price Analysis
This week, domestic carbon black prices in most regions saw a slight downward trend. As of Thursday, prices were: Shandong 7300 yuan/ton; Shanxi 7100 yuan/ton; Hebei 7400 yuan/ton; Guangzhou 7400 yuan/ton; and Zhejiang 7300 yuan/ton. The price of raw material coal tar continued to decline this week, making the cost-side bearish factor difficult to change.
Downstream market inventory remained high, resulting in low purchasing enthusiasm and low bid prices. However, previous costs were relatively high, limiting the room for price concessions on new carbon black orders. Market negotiations remained stagnant, and the bearish factor was unlikely to change in the future, maintaining a weak carbon black market.
1.2 Carbon Black Market Index Analysis
According to data from TuDuoDuo, as of June 18th, the carbon black price index was 7281.5, a decrease of 77.5 from the previous period.
2. Raw Material Market Analysis
2.1 Weekly Average Price Analysis of Coal Tar
During this period, new order prices for high-temperature coal tar in the domestic market were released one after another, but the overall trend remained downward. Downstream factories still maintained a downward pressure, although the decline was narrower than last week.
In the short term, downstream products will continue to decline, and the negative factors are difficult to digest in the short term. The coal tar market will continue to decline. However, given that products need cost support, the downward pressure from downstream factories will gradually ease, and there is also support from rigid demand. Therefore, the room for further decline in the coal tar market is expected to be limited.
2.2 Anthracene Oil Weekly Average Price Analysis
This period saw a significant decline in the domestic anthracene oil market price. The raw material market for high-temperature coal tar continued its wide-ranging downward trend, resulting in significant cost pressure. Currently, anthracene oil manufacturers have room to lower their offers.
The operating rate of coal tar deep processing plants has increased slightly, leading to minimal changes in the overall supply of anthracene oil. Downstream markets, particularly the anthracene oil hydrogenation industry, have very limited demand for anthracene oil, relying mainly on the immediate needs of the carbon black market. Carbon black production is currently at a relatively high level, and with profit pressures, there is a strong tendency to push down anthracene oil prices.
3. Carbon Black Market Outlook
Looking ahead to the next period, the domestic carbon black market is expected to see low prices for new orders. The market is facing significant headwinds, with downstream bids at low levels and negotiations stalled. However, manufacturers with previously high costs have limited room for price concessions, resulting in significant pressure on actual transactions. The market is expected to remain low with some room for further decline.
4. Carbon Black Industry N330 Profit Analysis
Taking Shandong as an example, carbon black market prices remained stable, while raw material coal tar market prices showed a downward trend, leading to an increase in theoretical profits for the carbon black market. As of now, the theoretical weekly profit for the carbon black industry is 169 yuan/ton, an increase of 201.5 yuan/ton compared to the previous period.
5. Market Operating Rate Statistics This Week
5.1 Carbon Black Market Operating Rate Analysis
The operating rate of sample enterprises in the domestic carbon black market is 69%.
5.2 Downstream Market Operating Rate Analysis
The operating rate of semi-steel tires in China is 69%. The operating rate of all-steel tires in China is 66%.
This week, the tire operating rate declined compared to the previous week. Some enterprises had maintenance or reduced operating rates during the week, dragging down the overall operating rate. Domestic sales were weak during the period, while foreign trade shipments still had some support.
Our platform connects hundreds of verified Chinese chemical suppliers with buyers worldwide, promoting transparent transactions, better business opportunities, and high-value partnerships. Whether you are looking for bulk commodities, specialty chemicals, or customized procurement services, TDD-Global is trustworthy to be your fist choice.
