Changes in commencement and production capacity

Changes in commencement of work

In the first half of 2023, the average operating rate of Chinese carbon black enterprises was 56%, a year-on-year decrease of 5.5%.

From January to March, with the support of cost inventory, the enthusiasm of downstream tires for the purchase of carbon black goods had not improved significantly. Under the influence of the continuous decline of coal tar, the end users had a bearish attitude, and the purchase of goods into the market was just on demand.

The operating rate in April and May continued to decline. Due to the overall shock of coal tar prices, the pressure on carbon black production costs continued to weaken. Some carbon black enterprises, supported by a certain amount of inventory, reduced their operating load and dragged down the operating rate. In addition, the maintenance plans of some carbon black enterprises in certain regions, the construction of the carbon black industry had declined overall.

Production capacity and growth rate of carbon black in China from 2016 to 2021

According to incomplete statistics, the total capacity of China's carbon black market in 2023 was about 9.5 million tons, an increase of 990,000 tons compared with last year. The overall capacity increased slightly, with East China and North China accounting for the largest proportion of carbon black capacity.

Changes in imports and exports

Import

According to customs data, the total import of carbon black in China increased significantly from January to May 2023, with the most significant increase in May. The cumulative import quantity of carbon black in China was 107,000 tons, an increase of 65,600 tons compared to the same period last year, and a year-on-year increase of 158.8%.

In the first half of 2023, the total import volume of carbon black in China significantly increased compared to the same period last year, with both year-on-year and month on month increases. The main reason was that considering the production of carbon black from high priced raw materials in the early stage, which drove domestic carbon black prices to remain high throughout the month. Terminal enterprises had limited acceptance of high carbon black prices, and some downstream factories had high resistance to high carbon black prices, so they chose to partially import carbon black to replace domestic carbon black, which drove an increase in the import of carbon black.

Export

According to customs data, the total amount of carbon black exports from China decreased slightly from January to May 2023. The cumulative total export volume of carbon black in China was 255,200 tons, a decrease of 76,500 tons compared to the same period last year, a year-on-year decrease of 23%.

Compared to imports, China's carbon black export volume decreased year-on-year and slightly increased month-on-month, but the overall export volume was relatively low.

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