Domestic carbon black market encounters problem

- Apr 26, 2019-

Recently, India carbon black manufacturers birla carbon black announced that it will increase from May 1, all the price of carbon black products in North America, mark-up is $170 / ton (about 1140.7 yuan/ton), after the us Cabot corporation also announced it would from April 1, an increase in the price of all products in North America $22 / ton (about 147.6 yuan/ton).

Two producers are the "blame" to the epa, bora, carbon black, claimed that the United States in recent years mandate emissions restrictions related to the company's local factory operating costs increased dramatically, Cabot corporation, points out that in North America, new environmental regulations be born make carbon black raw materials supply tight, heavy crude supply reduce caused difficulties to its mass production, the price is also in order to guarantee the product quality and service level of the company.

Some industry insiders said that these two carbon black enterprises have raised the price more than once in the north American market, while in the current Chinese market, perhaps no one dares to raise the price on such a large scale, because the environment of the two markets is very different.

Take the carbon black of N220 brand as an example. Since December 25, the product price has plummeted from 7,533 yuan/ton to 6,880 yuan/ton, a drop of 8.67%, and has been maintained at this low price ever since.

Than in North America for a long time with more strict environmental protection policies, under the high standards of the United States market concentration is much higher than China, almost several large carbon black enterprises occupied the whole market, it also makes enterprise's prices and delivery costs become very simple, but there are many carbon black enterprises of China market but can't do it.

In addition, the serious excess capacity is the cause of domestic carbon black enterprises dare to rise in price, price or other competitors can lead to take market share, the carbon black industry situation just better in 2017, 2018, the industry is nearly 600000 tons of production capacity has been added, and the downstream tire market demand is far behind, overcapacity situation even worse.

Understands China rubber, starting from the fourth quarter of last year's carbon black industry suffered "Waterloo", carbon black products and manufacturing raw materials prices appear upside down, "buy high and sell low" squealed, make enterprise in October after the loss of lower the carbon black the full-year profit of the enterprise, and even some are so suffered losses.

At present, China's production capacity of carbon black has exceeded 7.5 million tons, while the demand for carbon black is only over 5.5 million tons.Companies need to strictly control new production capacity and expand overseas markets by going global. In addition, they need to increase the supply capacity of high value-added products through research and development and technological innovation.