Competition in the carbon black market intensified Longxing Chemical's first-half performance exceeded 80%

- Jul 23, 2019-

On the evening of July 12, Longxing Chemical disclosed the semi-annual performance forecast for 2019. The company expects the net profit attributable to shareholders of listed companies from January to June 2019 to be about 8 million yuan to 12 million yuan, down 81.02% from the previous year. -87.35%.

Longxing Chemical's main products are carbon black, white carbon black, electricity and steam, and industrial naphthalene and other chemicals. For the reason of the decline in the first half of 2019, the company stated that during the reporting period, due to the significant decline in automobile production and sales, the operating rate of the downstream tire market decreased compared with the same period of the previous year, and the demand for carbon black in the tire market decreased. The release of new capacity of carbon black further aggravated the price competition in the carbon black industry. The market price of raw coal tar was high, and the common impact caused the gross profit margin of carbon black to drop sharply year-on-year.