Industry Chain

Cost side

Specifically, in the first quarter, the overall performance of raw materials was weak, with weaker demand, and bearish factors gradually occupied the dominant position, and the market situation for carbon black was weaker. In the second quarter, in the middle of May, as the auction price of the domestic high-temperature coal tar market rose sharply, the auction price of each main production area increased to a certain extent. Some coke enterprises increased by more than 1,000 RMB, which strongly supported the cost of carbon black. The situation turned into an upward trend. However, by the beginning of June, the auction price of domestic coal tar had declined, and the carbon black market was stable. The carbon black market in the second quarter showed a "V" trend.

In July, the coke enterprises started to work and the supply of Coal tar increased. The coke enterprises were basically on the edge of profit and loss, and had improved compared to the previous period. The coke market had a willingness to push up, and the overall construction had gradually improved, and there may still be an improvement in the later stage.

Downstream deep processing started relatively high, and supported by just in needed. The overall commencement of the deep processing industry was still at a high level, and no enterprise had a clear plan to stop production and reduce production. The demand for raw material coal tar was good for the market. In addition, the demand for coal tar pitchis expected to recover, and there is still room for growth in the short term, but the momentum for continuous growth may be insufficient. It is expected that the market will be stable in the later period, which will be good for the Coal tar market.

In general, the coal tar market is expected to remain stable after rising in July 2023 when it enters the second half of the year.

Downstream market

The main consumption proportions of carbon black in the downstream market are tire carbon black, rubber carbon black, plastic, etc., accounting for 66.7%, 22.2%, and 6.3% respectively.

In the first half of this year, the overall operating rate of downstream tire companies and other rubber product industries remained stable, finished product inventory was at a reasonable level, and the enthusiasm of enterprises to purchase goods was average. The performance of the rubber products and plastic masterbatch industries was flat, with purchases mainly in demand. June was the traditional off-season for lower cruise tire sales, and the demand side further weakened. The market was mostly in a wait-and-see state, and the bearish atmosphere gradually deepened, transactions in the carbon black market were weak. Mainstream tire manufacturers had a strong sentiment towards suppressing carbon black, and market operators had low enthusiasm for receiving goods. There was currently no obvious positive news in the market.

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