According to data monitored by Business Society, the price of carbon black increased significantly in February, with a significant increase after the Spring Festival. As of the 29th, the domestic N220 carbon black market price was 9966 yuan/ton, an increase of nearly 600 yuan/ton from the beginning of the month.

In terms of raw materials, the market price of coal tar has risen this month. As of the 28th, the price of coal tar was 4430 yuan/ton. Before the Spring Festival, most coke companies maintained a certain level of production restriction, and the supply and demand performance of the coal tar market was tight. After the Spring Festival, the third round of price reduction for coke fell, and coke companies were about to lose profits, leading to a decline in operating rates. The supply of coal tar in the coal tar field was tight, and downstream enterprise raw material inventories were quickly digested, greatly increasing their enthusiasm for purchasing coal tar, In some regions, coke companies have implemented significant production restrictions, resulting in tight supply of coal tar on site and an increase in prices. At present, the high-temperature coal tar market has maintained a stable operating state after a significant upward trend, providing strong support for the cost of carbon black. It is expected that the price of coal tar will continue to be strong in March..

Starting situation: From the perspective of post holiday operating rates compared to the previous period, most carbon black enterprises are currently operating steadily, with some maintaining high levels..

In terms of terminals, the tire industry experienced a significant shutdown during holidays before and after the Spring Festival, resulting in a significant decline in overall production. After the holiday, most downstream tire industry enterprises have resumed production, and the tire industry has resumed work and increased production, resulting in a significant increase in production and improved shipments. The current market inquiry enthusiasm has significantly increased, and the demand for raw material carbon black is still acceptable.

Import and export situation: According to customs data, China imported 24000 tons of carbon black in December 2023, an increase of 16.37% year-on-year and 6.47% month on month; From January to December 2023, China imported a total of 274000 tons of carbon black, an increase of 163.55% compared to the same period last year, with imports increasing by approximately 170000 tons. According to customs data, China’s carbon black exports in December 2023 were approximately 75300 tons, an increase of 43.03% year-on-year and 20.06% month on month. From January to December 2023, China’s cumulative export of carbon black reached 727000 tons, a decrease of 9.98% compared to the same period last year, and the export volume decreased by approximately 80600 tons

Production data: In January 2024, China’s carbon black production was 490300 tons, an increase of 37.22% year-on-year and 4% month on month.

In the future, the high-temperature coal tar market has improved, providing stronger support for the cost of carbon black; The downstream tire industry is still in a seasonal off-season, and the overall trading atmosphere is relatively cold. With early holiday arrangements, the demand for raw material carbon black is slightly flat, and it is expected that the carbon black market will operate steadily, moderately, and strongly in the short term.