SunSirs: There Was Some Support on the Cost Side, and the Price of Carbon Black Was Stable and Stronger (May 29-June 5)

Price trend

According to data monitored by SunSirs, the raw material market prices continued to rise in the past week, strengthening support for the cost side of carbon black. The carbon black market price has slightly increased, and on June 5th, the domestic carbon black N220 was quoted at 9,133 RMB/ton.

Analysis review

Cost side: In terms of raw materials, when the domestic coal tar market price was 4,372 RMB/ton, due to the decline in operating rates of coke companies, the supply of coal tar in some areas of the site was relatively tight, and downstream coal tar and carbon black prices significantly increased. The enthusiasm of factories to entering the market to receive goods was good, so the market showed certain positive factors, driving up the price of coal tar, and the price continued to operate at a high level. The rise in raw materials had strong support for the cost side of carbon black, The market price of carbon black was relatively strong, and the market price was also rising.

Supply and demand side: Most carbon black enterprises maintained normal operating levels, and there was little change in industry operating at the end of the month.

In terms of demand: Downstream tire companies and other rubber product industries had maintained a stable overall operating rate, with finished product inventory at a reasonable level. Enterprises had a general enthusiasm for purchasing goods, and their purchases were mainly in demand. Recently, the carbon black market had experienced a high frequency of ups and downs, and there was a strong wait-and-see atmosphere among enterprises. The carbon black market transactions were relatively light.

Market outlook

Overall, the market price of raw coal tar had risen, with some support on the cost side. However, there was no significant improvement in downstream demand, and there was a serious accumulation of inventory in downstream enterprises. Market procurement was mainly based on demand, and it is expected that carbon black will maintain stable operation in the short term.

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