Minor Profit Increase in the Carbon Black Industry Amid Overcapacity Crisis

At the 2024 China Carbon Black Outlook Conference, the news released on November 13 pointed out that under the joint efforts of the industry, the domestic carbon black industry achieved significant profit growth in the first three quarters of this year.

Ding Liping, secretary-general of the Carbon Black Branch of the China Rubber Industry Association, delivered a speech at the meeting, pointing out that although the carbon black industry, as a traditional industry, has long faced the challenge of meager operating profits and profit margins at the end of the industrial chain, enterprises have effectively reduced operating costs by optimizing management. She mentioned that thanks to the joint efforts of the industry, the total output of carbon black in the first three quarters of this year reached 3.85 million tons, an increase of 6%, a significant increase in profits, and a profit margin of 0.61%. With the support of the "Tire and carbon black unit product comprehensive energy consumption" standard, the association has submitted reports to the Ministry of Industry and Information Technology, the Ministry of Commerce, Customs and other relevant departments, and actively strive for national support for carbon black export tax rebate policy. Based on the export amount in 2023, if the 13% export tax rebate rate can be restored, it is expected to bring 950 million yuan to the industry, enhance the development potential of enterprises, and promote the joint growth of domestic and foreign markets.

Li Yi, chairman of the Carbon Black Branch and general manager of Jiangxi Black Cat Carbon Black Co., LTD., introduced that during the "14th Five-Year Plan" period, the production scale of China's carbon black industry continued to expand and product quality was significantly improved. According to relevant data, in 2023, the national carbon black production capacity reached 8.86 million tons, the output was 6.26 million tons, and the operation rate of the device was about 70%. At the same time, China's carbon black production process and equipment continue to innovate, the technical level continues to improve, and some technical equipment has been exported. For example, the capacity of a single furnace can reach 40,000 to 50,000 tons/year, and the successful use of coke oven gas and coal bed gas as reactor fuel. Remarkable results have been achieved in the production of energy saving and emission reduction, comprehensive utilization of resources, and comprehensive utilization of carbon black exhaust gas devices have been widely used, and exhaust dust has been reduced to 18 mg/m3 or less, and zero emissions of carbon black sewage have been achieved. In addition, the management level of the carbon black industry is also gradually improving, and the statistics of the first half of 2024 show that the operating expenses, administrative expenses and financial expenses of enterprises decreased by 11.94%, 12.30% and 8.09% respectively compared with the same period last year.

Li Yi stressed that in the next five years, the carbon black industry needs to accelerate the pace of intelligent manufacturing, lead the industry to the direction of automation and intelligence, and increase the research and development of new products, achieve the import substitution of domestic carbon black products, and promote the industry to differentiated and specialized development.

Xu Renwei, general manager of Zhonghao Heiyuan Chemical Research and Design Institute Co., LTD., said that in recent years, the total production capacity of domestic carbon black has maintained stable growth, and new raw materials, new processes and new enterprises have continued to emerge. Facing the national market demand and the global carbon black industry science and technology frontier, the industry needs to further strengthen the main role of carbon black enterprises in scientific and technological innovation, strengthen the overall planning and force organization of innovation resources, promote the deep integration of industry, university and research, jointly promote the coordinated development of scientific and technological innovation and industrial innovation, and form a strong force to strengthen the industrial chain, extend the industrial chain and supplement the industrial chain.