Demand for carbon black continues to shrink in the second half of the year

A few days ago, at the 2020 Tire Branch General Assembly, Ding Liping, Secretary-General of the Carbon Black Branch of China Rubber Industry Association, gave a keynote speech. Secretary-General Ding comprehensively analyzed the operation of the carbon black industry in the first half of 2020 and its development trend in the future.

The growth rate of carbon black production has declined

In the first half of 2020, the carbon black branch statistics that the total output of carbon black by enterprises was 2.22 million tons, a year-on-year decrease of 6.4%. Among the key enterprises in the statistics, there were 5 enterprises that maintained positive growth in output, including Shanxi Lun, Shandong Jinneng Technology, The growth rates of the top three companies in Shanxi and Shandong Lianke are on the high side. The output of the other 9 companies has decreased over the same period. The companies with a large decline include Cabot, Jiangxi Black Cat, Longxing Chemical, Qingzhou Boao, and Dashi Enterprises such as Qiao Liaobin and Shandong Nest.

50% of companies are at a loss

According to the statistics of the carbon black branch, the industry as a whole is in a state of loss in 2019, a sharp decline over the same period, and the total profit has dropped by 105%. Among the statistical enterprises, 11 companies have lost money, and the loss has reached 32%.

In the first half of 2020, the overall loss of the industry has also continued, and the amount of loss has further expanded, reaching nearly 50% of the loss.

The export volume and price of carbon black all fell

According to national customs statistics, the export volume of carbon black in the first half of 2020 was 298,000 tons, a year-on-year decrease of 22.26%. The average export price of US$842/ton in the same period last year was US$1,054. The average price dropped by 20.11%.

In the first half of the year, the main export countries were Thailand, Vietnam and Indonesia, but the export volume and export value were declining. Only the carbon black exported to South Korea showed an increase in both volume and price, and the export volume increased by a relatively large rate.

Imported carbon black volume and price rise

According to national customs statistics, the import of carbon black in the first half of the year was 39,800 tons, an increase of 11.33% year-on-year, and the import value was US$108 million, a year-on-year increase of 4.22%.The average unit price of imports was US$2,716 tons. The average unit price of imports in the same period last year was US$2,901 tons. The import unit price has dropped by 6.38% compared with the same period. It can be seen from the data that the average import unit price of carbon black is more than twice the average unit price of export carbon black. It can be seen that most imported carbon black is mainly high-end specialty carbon black, which is basically acceptable. Excluding the possibility of carbon black for ordinary rubber, the increase in the volume and price of imported carbon black indicates that the epidemic situation in China is basically controllable and the production and operation of enterprises have returned to normal levels.

The main importing countries are South Korea, Japan, and the United States. Both the import volume and the import value have shown a growth trend, and the import volume has increased significantly in Italy and the Netherlands.

Continue to control carbon black production in the second half of the year

From the statistical data, the growth rate of tire comprehensive tire production is close to two declines, a decrease of 9.47%, and the export delivery volume of tires has dropped significantly by 17%.In this case, carbon black should control production and maintain Reasonable inventory, maintain the balance of supply and demand, maintain reasonable market prices, and control corporate losses. From the 8% decline in carbon black production in the first half of the year, it is still necessary to continue to control production in the second half of the year to achieve reasonable supply and maintain sustainable development of the company.