Tire market performance sluggish, carbon black new orders still not placed

14 December 2021 | Source from China Rubber Web

At the beginning of the week, the domestic carbon black market is still cold, few orders for plastic masterbatches in the field; strong price suppression sentiment in the product industry; negative pickup by tire enterprises; slow deliveries from carbon black manufacturers, and new orders for carbon black in December still have not confirmed.

On the supply side, the recent carbon black industry overall start-up load than last month has improved, the overall start-up of carbon black enterprises in Shandong region is stable, Shanxi region, some of the previous shutdown manufacturers have resumed. Affected by the recent slow market deliveries, carbon black manufacturers' inventories have risen, and the market carbon black supply is sufficient.

On the demand side, the plastic masterbatch and product industries are still underperforming. Tire market is currently relatively stable start load, but tire enterprises on carbon black wait and see, bargaining sentiment is strong, as of today, the market mainstream tire enterprises in December new orders still have not agreed, some tire enterprises to stop the carbon black intake to digest inventory; some tire enterprises just demand, in the case of new orders have not agreed, carbon black manufacturers are under pressure not to price and supply.

On the cost side, last week, coal tar prices in Shanxi and northeast China fell sharply, while prices in Shandong stabilized, and the overall coal tar fell significantly compared with the previous high, and the cost of carbon black manufacturers fell. In this month, the delivery of carbon black began to be sluggish. Under the condition of price cuts, carbon black business profit margins shrink significantly.

Future expectations are, tire market performance will become gradually weak, downstream demand downturn situation is difficult to change in the short term, while the supply of carbon black has increased compared to last month, market feedback is that carbon black manufacturers inventory continues to rise, predicted that in the short term carbon black is difficult to improve, the future new orders give a profit concession, so carbon black market low prices will be constantly updated.

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