Daily review: Lack of Demand Boost Leads to Short-Term Narrow Range Consolidation in Carbon Black Prices

Market Overview: On July 3, carbon black market prices were temporarily consolidating. This week, coal tar prices continued to rise significantly, and the short-term coal tar market remained at a high level. The raw material side provided firm support for carbon black, and under cost pressure, some carbon black producers moderately raised their listed prices. At present, the mainstream intended transaction range for carbon black N330 is referenced at RMB 7,500-7,700/ton, with some higher and lower prices also seen. In terms of production, capacity changes from increases and decreases were limited this week, and the average operating rate of the carbon black industry was around 67.03%. On the demand side, downstream inventories were under obvious pressure during the off-season, and as current carbon black stocks could temporarily meet short-term production needs, inquiries for new orders were scarce. Demand remained weak, and the short-term carbon black market lacked positive support.

Carbon black area price: unit (yuan/ton)

Market Outlook: In the short term, the coal tar market is expected to remain at a high level, providing solid support on the raw material side for carbon black, while cost pressure remains generally significant. On the production side, sporadic production cuts are expected next week, and the average operating rate of carbon black plants is projected to be around 68% during the week. On the demand side, with the implementation of the EU anti-dumping and anti-subsidy policies, the capacity utilization rate of semi-steel tires may decline, and demand is likely to continue weakening. It is expected that carbon black prices will fluctuate within a narrow range in the short term, with the mainstream delivered price of carbon black N330 referenced at around RMB 7,400-7,600/ton. ყურადღություն should be paid to raw material price trends, changes in carbon black supply and demand, as well as the impact of subsequent macroeconomic factors.