According to data monitored by the Business Society, the domestic carbon black market prices have risen during the cycle. On August 7th, the domestic carbon black N220 was quoted at 9266 yuan/ton, mainly due to a decline in raw material prices in the early stage, poor downstream shipments, weak demand side performance, and a gradual increase in bearish factors on the market.

Cost side: In terms of raw materials, the market price of coal tar has started to rise, with most deep processed products showing a parallel relationship with the raw material coal tar. The enterprise operates well, actively receiving raw materials, and coal tar has entered a tight supply and rising price situation, providing strong support for the cost side of carbon black; As of August 6th, the market price of coal tar is 4757 yuan/ton.

Supply and demand side: Most carbon black enterprises maintain normal operating levels, and the overall operation of the domestic carbon black market is stable, with sufficient supply in the carbon black market.

In terms of demand: The overall demand of downstream tire enterprises is weak, and they are still in the traditional sales off-season. Although the market is affected by buying up rather than falling, the enthusiasm of end users for inquiries has increased. However, recently, there has been a shortage of construction and infrastructure work, leading to further weakening domestic demand. Enterprises mainly need to purchase just now, and have a clear resistance to high priced carbon black sources, resulting in weak overall demand.

Overall, the high price of raw coal tar in the market provides good support for the cost of carbon black, with low inventory levels and no significant improvement on the demand side. The market has a strong wait-and-see atmosphere, and it is expected that the carbon black market will consolidate and operate in the short term.