According to data monitored by Business Society, the domestic carbon black price has increased this month. On September 28th, the domestic carbon black N220 was quoted at 11266 yuan/ton, an increase of 6.62% compared to the initial price of 10566 yuan/ton

Cost side: After the price of coal tar market rose this month, it maintained stable operation. As of now, the domestic price of coal tar market is 4947 yuan/ton. At the beginning of the month, there was strong downstream demand, and the coal tar market continued to rise, with carbon black prices rising due to cost. In the middle of the month, the bearish atmosphere in the coal tar market intensified, and prices in the main production areas followed suit. However, the supply of coal tar on site is relatively tight, and with the support of downstream demand, the downward trend of coal tar is relatively small. By the end of the month, the operating rates of deep processing and carbon black enterprises have rapidly increased, driving up the price of coal tar. It is expected that the coal tar market will operate in a narrow range of fluctuations in the short term.

Supply and demand side: Most carbon black enterprises maintain normal operating levels, and the overall inventory of the carbon black industry is currently low.

In terms of terminals, this month, with the arrival of the “Golden Nine Silver Ten” initiative, downstream enterprises have a higher level of production, and tire shipments are smoother than in the early stage. Terminal enterprises have low carbon black inventory, and on-site inquiries are more positive. The upcoming Double Festival holiday is approaching, and the downstream tire and rubber product industry has a strong stocking sentiment. The enthusiasm for raw material carbon black inquiries is still good.

In terms of import and export, according to customs data, China imported 26800 tons of carbon black in August 2023, an increase of 351.84% year-on-year and 28.85% month on month; From January to August 2023, China’s cumulative import of carbon black reached 174000 tons, an increase of 187.96% compared to the same period last year, with an increase of approximately 114000 tons in imports. In August 2023, China’s carbon black exports were approximately 71300 tons, a year-on-year decrease of 0.18% and a month on month increase of 9.96%. From January to August 2023, China’s cumulative export of carbon black reached 467000 tons, a decrease of 21.04% compared to the same period last year, and the export volume decreased by approximately 124000 tons.

Overall, the current raw material coal tar market is operating in a volatile manner, with a relatively small downward trend, providing significant cost support for carbon black prices. The terminal tire market is actively buying carbon black, and it is expected that the short-term carbon black market will maintain a high level of operation, with a strong consolidation operation. The future trend will focus on downstream demand.