U.S. masterbatch prices continue to rise; how will the Chinese market respond to the chain reaction?

• As a core raw material for industries such as automotive, plastics, and rubber, the price dynamics of masterbatch not only reflect fluctuations in the raw materials market but also mirror the complexity of the global economic and policy environment. The rise in production costs, particularly the rebound in crude oil prices, has become the primary factor driving up the price of masterbatch.

• At the end of February, there was a slight rebound in U.S. crude oil prices, with a significant reduction in commercial crude oil inventories, and gasoline and distillate fuel inventories also declined, highlighting the tight domestic supply situation. Crude oil, as a key

According to the Masterbatch Industry Network, recently, the US masterbatch market has seen a wave of price increases, a trend driven by multiple factors including the recovery of consumer demand, rising production costs, and uncertainties in the trade environment.

Industry experts have analyzed that this upward trend is expected to continue over the next few months, and market volatility may further intensify due to unstable crude oil prices, geopolitical tensions, and supply chain challenges.

• As a core raw material in industries such as automotive, plastics, and rubber, the price dynamics of masterbatch not only reflect fluctuations in the raw materials market but also the complexity of the global economic and policy environment. The rise in production costs, particularly the rebound in crude oil prices, has become the primary factor driving up the price of masterbatch.

• By the end of February, there was a slight increase in U.S. crude oil prices, with a significant reduction in commercial crude oil inventories, and a concurrent decrease in gasoline and distillate fuel inventories, highlighting the tight domestic supply situation. As a key upstream raw material in the masterbatch production chain, fluctuations in the price of crude oil directly impact downstream, pushing up production costs.

• At the same time, the price of carbon black, an important component of masterbatch, steadily increased in February.

• Geopolitical tensions, especially those involving RussiaSure, please provide the content that needs to be translated.

  According to the Masterbatch Industry Network, recently, the US masterbatch market has seen a wave of price increases, driven by multiple factors including a recovery in consumer demand, rising production costs, and uncertainties in the trade environment.

  

  Industry experts have analyzed that this upward trend is expected to continue over the next few months, with market volatility likely to be further exacerbated by unstable crude oil prices, geopolitical tensions, and supply chain challenges.

  Multiple Factors Driving Up Prices

  Rising Production Costs as the Main Reason for Price Increases

  • As a core raw material for industries such as automotive, plastics, and rubber, the price dynamics of masterbatch not only reflect fluctuations in the raw materials market but also highlight the complexity of the global economic and policy environment. The rise in production costs, particularly the rebound in crude oil prices, is the primary factor driving up the cost of masterbatch.

  • At the end of February, there was a slight increase in US crude oil prices, with commercial crude oil inventories significantly decreasing, and gasoline and distillate fuel inventories also falling, highlighting the tight domestic supply situation. As a key upstream raw material in the masterbatch production chain, fluctuations in the price of crude oil directly impact downstream, pushing up production costs.

  • Meanwhile, the price of carbon black, an important component of masterbatch, steadily increased in February.

  • Geopolitical tensions, especially those involving Russia, have added to the risk of supply disruptions, further pushing up market

  According to the Masterbatch Industry Network, recently, the US masterbatch market has experienced a wave of price increases, a trend driven by multiple factors including the recovery of consumer demand, rising production costs, and uncertainties in the trade environment.

  

  As industry experts analyze deeply, this upward trend is expected to continue over the next few months, with market volatility potentially further exacerbated by unstable crude oil prices, geopolitical tensions, and supply chain challenges.

  According to the Masterbatch Industry Network, recently, the US masterbatch market has experienced a wave of price increases, a trend driven by multiple factors including the recovery of consumer demand, rising production costs, and uncertainties in the trade environment.

  According to the Masterbatch Industry Network, recently, the US masterbatch market has experienced a wave of price increases, a trend driven by multiple factors including the recovery of consumer demand, rising production costs, and uncertainties in the trade environment.

  

  

  According to in-depth analysis by industry experts, this upward trend is expected to continue over the next few months, and market volatility may further increase due to unstable crude oil prices, geopolitical tensions, and supply chain challenges.

  Multiple Factors Pushing Up Prices
  Multiple Factors Pushing Up Prices
  Multiple Factors Pushing Up Prices
  Multiple Factors Pushing Up Prices
  Multiple Factors Pushing Up Prices
  Multiple Factors Pushing Up PricesMultiple Factors Pushing Up Prices
  Rising Production Costs Become the Main Reason for Price Increases

  • As a core raw material in industries such as automotive, plastics, and rubber, the price dynamics of color masterbatches not only reflect fluctuations in the raw material market but also highlight the complexity of the global economic and policy environment. The increase in production costs, especially the rebound in crude oil prices, has become the primary factor driving up the prices of color masterbatches.

  • By late February, there was a slight rebound in U.S. crude oil prices, with a significant decrease in commercial crude oil inventories, and gasoline and distillate fuel inventories also fell, highlighting the tight domestic supply situation. As a key upstream raw material in the color masterbatch production chain, fluctuations in the price of crude oil directly affect downstream, pushing up production costs.

  • Meanwhile, carbon black, an important component of color masterbatches, saw a steady rise in prices in February.

  • Geopolitical tensions, particularly those involving Russia, have added to the risk of supply disruptions, further driving up market prices.

  Rising Production Costs Become the Main Reason for Price Increases

  • As a core raw material in industries such as automotive, plastics, and rubber, the price dynamics of color masterbatches not only reflect fluctuations in the raw material market but also highlight the complexity of the global economic and policy environment. The increase in production costs, especially the rebound in crude oil prices, has become the primary factor driving up the prices of color masterbatches.

  • By late February, there was a slight rebound in U.S. crude oil prices, with a significant decrease in commercial crude oil inventories, and gasoline and distillate fuel inventories also fell, highlighting the tight domestic supply situation. As a key upstream raw material in the color masterbatch production chain, fluctuations in the price of crude oil directly affect downstream, pushing up production costs.

  • Meanwhile, carbon black, an important component of color masterbatches, saw a steady rise in prices in February.

  • Geopolitical tensions, particularly those involving Russia, have added to the risk of supply disruptions, further driving up market prices.

  Rising Production Costs Become the Main Reason for Price Increases

  • As a core raw material in industries such as automotive, plastics, and rubber, the price dynamics of color masterbatches not only reflect fluctuations in the raw materials market but also highlight the complexity of the global economic and policy environment. The rise in production costs, particularly the rebound in crude oil prices, has become the primary factor driving up the prices of color masterbatches.

  • By the end of February, there was a slight recovery in U.S. crude oil prices, with a significant reduction in commercial crude oil inventories, and gasoline and distillate fuel inventories also decreased, underscoring the tight domestic supply situation. As a key upstream raw material in the color masterbatch production chain, fluctuations in the price of crude oil directly affect downstream costs, pushing them higher.

  • Meanwhile, carbon black, an important component of color masterbatches, saw a steady increase in its price in February.

  • Geopolitical tensions, especially those involving Russia, have added to the risk of supply disruptions, further driving up market prices.

  Rising Production Costs Become the Main Reason for Price Increases

  • As a core raw material in industries such as automotive, plastics, and rubber, the price dynamics of color masterbatches not only reflect fluctuations in the raw materials market but also highlight the complexity of the global economic and policy environment. The rise in production costs, particularly the rebound in crude oil prices, has become the primary factor driving up the prices of color masterbatches.

  • By the end of February, there was a slight recovery in U.S. crude oil prices, with a significant reduction in commercial crude oil inventories, and gasoline and distillate fuel inventories also decreased, underscoring the tight domestic supply situation. As a key upstream raw material in the color masterbatch production chain, fluctuations in the price of crude oil directly affect downstream costs, pushing them higher.

  • Meanwhile, carbon black, an important component of color masterbatches, saw a steady increase in its price in February.

  • Geopolitical tensions, especially those involving Russia, have added to the risk of supply disruptions, further driving up market prices.

  Rising Production Costs Become the Main Reason for Price Increases
  Rising Production Costs Become the Main Reason for Price IncreasesRising production costs become the main reason for price increases

  • As a core raw material for industries such as automotive, plastics, and rubber, the price dynamics of color masterbatches not only reflect fluctuations in the raw material market but also highlight the complexity of the global economic and policy environment. The rise in production costs, especially the rebound in crude oil prices, has become the primary factor driving up the price of color masterbatches.

  • At the end of February, there was a slight increase in U.S. crude oil prices, with a significant reduction in commercial crude oil inventories, and gasoline and distillate fuel inventories also decreased, highlighting the tight domestic supply situation. As a key upstream raw material in the color masterbatch production chain, the fluctuation in crude oil prices is directly transmitted downstream, increasing production costs.

  • Meanwhile, carbon black, an important component of color masterbatches, saw its price steadily rise in February.

  • The geopolitical tensions, particularly those involving Russia, have added to the risk of supply disruptions, further driving up market prices.

• As a core raw material for industries such as automotive, plastics, and rubber, the price dynamics of color masterbatches not only reflect fluctuations in the raw material market but also highlight the complexity of the global economic and policy environment. The rise in production costs, especially the rebound in crude oil prices, has become the primary factor driving up the price of color masterbatches.

As a core raw material for industries such as automotive, plastics, and rubber, the price dynamics of color masterbatches not only reflect fluctuations in the raw material market but also highlight the complexity of the global economic and policy environment. The rise in production costs, especially the rebound in crude oil prices, has become the primary factor driving up the price of color masterbatches.

As a core raw material for industries such as automotive, plastics, and rubber, the price dynamics of color masterbatches not only reflect fluctuations in the raw material market but also highlight the complexity of the global economic and policy environment. The rise in production costs, especially the rebound in crude oil prices, has become the primary factor driving up the price of color masterbatches.

• At the end of February, there was a slight increase in U.S. crude oil prices, with a significant reduction in commercial crude oil inventories, and gasoline and distillate fuel inventories also decreased, highlighting the tight domestic supply situation. As a key upstream raw material in the color masterbatch production chain, the fluctuation in crude oil prices is directly transmitted downstream, increasing production costs.

At the end of February, there was a slight increase in U.S. crude oil prices, with a significant reduction in commercial crude oil inventories, and gasoline and distillate fuel inventories also decreased, highlighting the tight domestic supply situation. As a key upstream raw material in the color masterbatch production chain, the fluctuation in crude oil prices is directly transmitted downstream, increasing production costs.

At the end of February, there was a slight increase in U.S. crude oil prices, with a significant reduction in commercial crude oil inventories, and gasoline and distillate fuel inventories also decreased, highlighting the tight domestic supply situation. As a key upstream raw material in the color masterbatch production chain, the fluctuation in crude oil prices is directly transmitted downstream, increasing production costs.

• Meanwhile, carbon black, an important component of color masterbatches, saw its price steadily rise in February.

Meanwhile, carbon black, an important component of color masterbatches, saw its price steadily rise in February.

Meanwhile, carbon black, an important component of color masterbatches, saw its price steadily rise in February.

• The geopolitical tensions, particularly those involving Russia, have added to the risk of supply disruptions, further driving up market prices.

Geopolitical tensions, particularly those involving Russia, have added to the risk of supply disruptions, further driving up market prices.

Geopolitical tensions, particularly those involving Russia, have added to the risk of supply disruptions, further driving up market prices.
Automotive Industry Demand Drives Market Growth

• The automotive industry, as a major consumer of color masterbatches, plays a crucial role in driving market demand. In February 2025, new car sales in the United States are expected to reach 1.23 million units, showing a recovery from January and indicating a volatile resurgence in consumer demand.

• An increase in the demand for rubber components (such as tires) in automobile production directly drives the use of carbon black and color masterbatches.

• However, intensified market competition and declining retailer profits also bring uncertainties to this growth trend.

Automotive Industry Demand Drives Market Growth

• The automotive industry, as a major consumer of color masterbatches, plays a crucial role in driving market demand. In February 2025, new car sales in the United States are expected to reach 1.23 million units, showing a recovery from January and indicating a volatile resurgence in consumer demand.

• An increase in the demand for rubber components (such as tires) in automobile production directly drives the use of carbon black and color masterbatches.

• However, intensified market competition and declining retailer profits also bring uncertainties to this growth trend.

Automotive Industry Demand Drives Market Growth

• The automotive industry, as a major consumer of color masterbatches, plays a crucial role in driving market demand. In February 2025, new car sales in the US are expected to reach 1.23 million units, showing a recovery from January and indicating a volatile rebound in consumer demand.

• The increased demand for rubber components (such as tires) in automobile production has directly driven up the use of carbon black and color masterbatches.

• However, intensifying market competition and declining retailer profits have also brought uncertainties to this growth trend.

Automotive Industry Demand Drives Market Growth

• The automotive industry, as a major consumer of color masterbatches, plays a crucial role in driving market demand. In February 2025, new car sales in the US are expected to reach 1.23 million units, showing a recovery from January and indicating a volatile rebound in consumer demand.

• The increased demand for rubber components (such as tires) in automobile production has directly driven up the use of carbon black and color masterbatches.

• However, intensifying market competition and declining retailer profits have also brought uncertainties to this growth trend.

Automotive Industry Demand Drives Market Growth
Automotive Industry Demand Drives Market GrowthAutomotive Industry Demand Drives Market Growth

• The uncertainty of trade policies has cast a shadow over the masterbatch market. The US President once proposed imposing high tariffs on automobiles and parts from Canada and Mexico. If this policy were implemented, it would severely disrupt the North American automotive supply chain, indirectly affecting the demand for masterbatches.

• The US masterbatch market, which heavily relies on international suppliers, is extremely susceptible to fluctuations in global trade policies. Tariff threats could further drive up costs and suppress downstream demand.

• Logistics challenges are also exacerbating the complexity of the masterbatch market. The shortage of railcars and a surge in cargo volume at key ports like the Port of Los Angeles have led to severe delays in container loading for some shipments.

• In addition, the recent wildfires in the Los Angeles area have added uncertainty to the supply chain. These logistics bottlenecks not only delay the delivery of raw materials and finished products but also indirectly increase operating costs for companies, further supporting the upward trend in masterbatch prices.

Turning to the domestic market, a series of price fluctuations in the upstream market for masterbatches has undoubtedly brought many uncertainties to the downstream masterbatch market.

• In January, affected by the rise in international oil prices, the import price of crude oil in China also increased accordingly; while in February, with the adjustment of international oil prices, the import price also decreased. Although U.S. oil prices rose slightly at the end of February, its impact on the Chinese market was not yet evident.

• However, due to the increase in coal tar prices and the influence of the international market, carbon black prices continued to climb in February, with an increase of over 1,500 yuan. Cabot recently issued a price increase notice, announcing that from March 10, 2025, the sales price of all specialty carbon black products produced in China will be raised by 1,000 yuan per ton.

• Titanium dioxide, another important raw material for masterbatches, also showed a clear upward trend in prices. So far, 21 domestic titanium dioxide companies, including Lomon Group, Huiyun Titanium Industry, and Daun Titanium Industry, have successively issued price increase notices, announcing a general increase of 300 yuan per ton domestically. This is the second price adjustment within the year following the collective price adjustment before the Spring Festival in late January. In total, the highest increase in domestic titanium dioxide prices reached 800 yuan per ton.

• Due to the Spring Festival holiday, demand in the downstream plastics industry was low in January; however, as the holiday ended and downstream enterprises resumed production, demand gradually recovered in February.

• Currently, the domestic masterbatch market prices are in a stalemate. Future trends will be influenced by multiple factors such as fluctuations in international market prices, changes in domestic market demand, and policy adjustments.