The carbon black market experienced a remarkable surge of over ¥1500. This sudden increase was due to an unexpected rise in the price of coal tar, which provided substantial support to the division.

The surge in coal tar prices has had a significant impact on the downstream carbon black market, leading to price increases. As of May 29, the domestic N220 carbon black was priced at 8,666 yuan per ton.

Costs have risen because of high demand for bitumen and anthracene oil within the coal tar industry. This rise gives strong support to the upward trend seen in the carbon black sector.

On supply-demand dynamics; Most companies are maintaining normal production levels, with some gradually resuming operations after maintenance shutdowns in previous weeks. However, tire manufacturers and other rubber products industries remained stable, while inventories remained reasonable, but purchasing activity was driven primarily by immediate demand rather than stockpiling given the frequent volatility observed within this sector recently, resulting in low trading volumes on the market.

Overall, the analysis suggests that while price stability may be supported over time, the short-term outlook remains uncertain until additional developments occur regarding consumer behaviour towards these products, which will ultimately determine future trends within this sector.