Carbon black prices are weak this week (12.25-1.1)

According to data monitored by Business Society, carbon black prices have been weak this week. As of now, the domestic N220 carbon black market price is 9566 yuan/ton

In terms of raw materials, the market price of coal tar fell this week. As of the 1st, the price of coal tar was 4237 yuan/ton, a decrease of nearly 150 yuan/ton from December 25th, which provided poor support for the cost of carbon black. The overall downstream market is still sluggish, and there are currently no eye-catching products in the downstream industry. We only maintain on-demand procurement for coal tar, which is suppressing the downward adjustment of coal tar market prices. The bearish situation still exists, and it is expected that coal tar prices will operate weakly in the short term.

Supply and demand side: In November, some carbon black enterprises stopped production for maintenance to alleviate inventory pressure, dragging down a narrow decline in the operating rate of carbon black enterprises. In December, due to environmental factors, some carbon black enterprises in Shandong, Shanxi and other regions were restricted in their operations, and the operating rate of carbon black enterprises was slightly reduced.

In terms of terminals: The downstream tire industry is currently in a seasonal off-season, and businesses have a more wait-and-see attitude. The demand for all steel tires and half steel tires is gradually slowing down. The transportation volume of goods in the northern logistics industry has significantly decreased, and the demand for tire replacement has sharply decreased. Terminal demand is weak, and enterprise inventory continues to slowly increase. Some tire companies are carrying out equipment maintenance to reduce production burden. Manufacturers are not actively purchasing carbon black raw materials, and entering the market to obtain goods only maintains basic needs, The market trading atmosphere is relatively quiet.

In the future, the high-temperature coal tar market may continue to be weak, providing poor support for the cost of carbon black; In the context of a sluggish market, the downstream terminal tire industry is facing a multi-dimensional demand for goods entering the market. It is expected that the carbon black market will remain generally stable in the short term and operate in a consolidated manner.