What Are Reasons for the Increasing Carbon Black Market ?

The carbon black market started to be firm in Q4, 2016. Increasing prices of raw materials, tight supply and high operating rate in the Chinese tire industry all support the carbon black market. Influenced by the stricter environmental protection, some carbon black producers cannot run normally. Detailed reasons are as follows:

Decreasing Operating Rate Boosted the Coal Tar Prices

Influenced by the haze in China, some coking producers in Hebei and Shanxi cut their operating rates down 30%-50%. The overall operating rate in East China also slides down.
However, most carbon black producers run at full loads. The demand for coal tar is strong. The coal tar price may continue the uptrend on the tight supply.

The Operating Rate at Chinese Tire Industry Remains High.

After the new regulation published on September 21, the demand for new vehicles has increased. Hence, the demand for all-steel is expected to be high.

On the whole, the strong demand from the tire industry and tight supply of raw materials ensure the firm carbon black market.