Carbon Black Market This Week's Trend

This week, carbon black market prices remained largely stable, with limited new order volume. Prices were 6,350 yuan/ton in Shandong, 5,950 yuan/ton in Shanxi, 6,450 yuan/ton in Hebei, 6,600 yuan/ton in Guangzhou, and 6,300 yuan/ton in Zhejiang, remaining unchanged from the previous week.

On the raw material side: The coal tar market is characterized by a wait-and-see attitude, with some prices showing a narrow downward trend. With domestic high-temperature coal tar prices reaching high levels earlier this year, downstream factories are facing significant cost pressures, particularly carbon black companies, which are facing increasing losses. Due to unsuccessful attempts to push up carbon black prices and increasing inventory pressure, most carbon black companies have reduced their purchases of high-temperature coal tar.

On the deep processing side, as asphalt inventories gradually rise, end-user carbon companies are less eager to buy, and further price increases in coal tar have become sluggish. Furthermore, anthracene oil is showing signs of a downward trend. The market has fully absorbed the previous positive factors, leading to recent weakness in the coal tar market. However, downstream demand remains relatively stable, and newly commissioned downstream deep processing plants are stockpiling raw materials, providing strong support, limiting the extent of this round of decline.

On the demand side: Factory operations continue to weaken, with actual demand limited. Semi-steel tire operating rates are at 70%, and full-steel tire operating rates are at 60%. Some semi-steel tire companies have recently suspended or reduced production, which has had a certain impact on overall operating rates. Regarding all-steel tires, some companies that underwent maintenance have resumed operations, while others are experiencing stock shortages.

Moderate production increases have boosted operating rates, but some companies still scheduled maintenance during the week, limiting the overall increase in operating rates. Following the rise in carbon black market prices, downstream demand for orders has declined, primarily focusing on replenishing inventory based on existing demand. Small orders were placed sporadically at high levels, and pricing for some new downstream tire orders remains under negotiation.

Operation: Profits continue to suffer. Carbon black companies' operating loads have declined slightly. The market price of raw material coal tar has stabilized and consolidated, but cost pressures remain. Furthermore, it is difficult to push up new carbon black orders, leading to more stable negotiations.

The carbon black market is operating at a loss. Driven by continued profit losses, carbon black companies' operating loads have declined slightly. Some companies in Shanxi are undergoing maintenance, and the market is experiencing significant losses. Manufacturers are not very enthusiastic about operating, and previous orders are being fulfilled. Even if shipments are slow, manufacturers are maintaining low loads to mitigate market risks.

Overall: supply and demand pressure is still there. Carbon black will stabilize in the future. From the perspective of the future, the raw material coal tar market is weak, the cost side is bearish for the market, the downstream enthusiasm for receiving goods is not high, and the price reduction negotiation is the main method. The market support will weaken next week, but the recent losses are large. Most manufacturers maintain stable quotations. Carbon black is expected to stabilize in the future.

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