Positive news drives up carbon black prices

Raw Material Side: Unstable Situation Keeps Coal Tar Prices High

This week, the domestic high-temperature coal tar market saw a significant price increase. Downstream operating rates rose rapidly, resulting in strong demand for coal tar and tight supply in some areas. Furthermore, new orders for coal pitch were successfully priced, with the increase exceeding that of raw material coal tar. Therefore, market sentiment is bullish.

The turbulent situation in the Middle East and the closure of traffic in the Strait of Hormuz triggered price increases for crude oil and a series of chemical products. Driven by this force majeure factor, the domestic high-temperature coal tar market saw a larger price increase this week, returning to the high levels seen in the same period of 2025.

The spot price of anthracene oil in Shandong Province has significant room for price increases. Influenced by the situation in the Middle East, the price of high-temperature coal tar in the raw material market has seen a widening increase. During the cycle, the operating rate of deep processing of coal tar has fluctuated relatively little, resulting in minimal impact on anthracene oil supply. The strong trend in raw material prices has greatly boosted the selling sentiment of anthracene oil holders.

Currently, there is significant room for price increases in Shandong. Downstream carbon black enterprises have not yet entered the market to take over. Looking at the overall downstream market, carbon black market offers have risen sharply, making actual transactions difficult.

Some anthracene oil hydrogenation enterprises are preparing to resume operations, and their short-term acceptance of high-priced raw materials is limited. Therefore, in summary, the short-term upward trend in the anthracene oil market is already established, but the specific extent of the increase remains to be discussed.

Demand Side: Tire Plants Resuming Production, Operating Rates Improving

Regarding semi-steel tires, the semi-steel tire market has remained relatively stable. Domestic restocking after the holiday and orders from some distributors have boosted channel demand, leading to a significant increase in terminal retail purchases.

Although exports have been affected by the weakening European and Middle Eastern markets, the EU has not yet implemented provisional anti-dumping duties, and overall orders remain resilient. Rising raw material prices have increased cost pressures, fueling expectations of price increases across the industry. Some companies have already begun to withdraw price discounts for certain specifications.

Regarding all-steel tires, the market performance has been mixed. Domestic restocking is concentrated, coupled with dealer order meetings boosting purchasing enthusiasm, resulting in generally good channel purchasing performance.

Exports, however, are under significant pressure, with weakened shipments to the Middle East and Europe, increasing pressure on companies primarily handling Middle Eastern orders. Costs are also supported by rising raw material prices, narrowing profit margins and leading to increasing calls for price increases. Further tightening of promotional policies is possible.

In summary: Supply and demand are expected to improve, and the carbon black market is consolidating with prices supported.

Looking ahead, the domestic raw material coal tar market is expected to continue rising, providing continued support for prices. However, the downstream tire market is affected by the situation in the Middle East, leading to downward pressure on high prices.

Furthermore, the rise in tire costs is hindering the price increases of end products, which in turn puts downward pressure on the raw material carbon black market. It is expected that the market will remain stagnant at high levels next week.

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