This week, the price of carbon black in the market has mainly increased As of the 21st, the domestic market price of N220 carbon black was at 8864.29 yuan/ton, an increase of 4.46% from 8485.71 yuan/ton at the beginning of the week, and a year-on-year increase of 21.93%.

In terms of raw materials, the coal tar market for raw materials has shown a broad upward trend this week. As of August 20th, the mainstream transaction price of high-temperature coal tar in Shandong has risen to 4340-4370 yuan/ton, an increase of 290-320 yuan/ton from last Thursday. The reduction in production by coking enterprises has led to a tight supply of coal tar, and the enthusiasm for downstream procurement has increased, driving up prices. The strong rise in raw material prices has provided significant cost support for the carbon black market.
On the supply side, the operating rate of the carbon black industry has increased this week. According to the operating rate of carbon black enterprises, it was 67.73%, an increase of 1.98 percentage points from last week. Some large enterprises are increasing their production load to fulfill orders, and there are currently no plans to add new maintenance manufacturers in the near future. However, there are still some manufacturers in the Shandong region undergoing maintenance. The enthusiasm of on-site operators for starting work has increased.
In terms of the end market, downstream tire companies have seen a narrow increase in capacity utilization, but overall demand side support is limited. Currently, it is the off-season for traditional consumption, and the terminal market lacks the driving force of essential demand. Downstream tire companies have low acceptance of high priced orders, and carbon black companies are facing certain shipping pressure. The market transactions are mainly based on first-time orders and pre-sale orders, and the actual transaction volume is lower than expected.
Influencing factors: The cost side is the main driving force of this round of market trend, and the significant increase in coal tar prices has pushed up the production cost of carbon black. From the perspective of price position, the current 60 day cycle price of carbon black is at a medium high level, and the 3-month and 1-year cycle prices are both at a high level, with limited upward space. In addition, some carbon black companies have low inventory levels, providing some bottom support for prices.
Outlook for the future: This week, the price increase of carbon black market has expanded due to cost push, and weak downstream demand has constrained the volume of high priced transactions. In the short term, there is still a possibility that the raw material coal tar will continue to rise, and cost support is expected to continue. However, there is a lack of substantial improvement on the demand side, coupled with prices already in a high range. It is expected that the carbon black market will mainly fluctuate at a high level next week, and the increase may gradually narrow.