[Hot Focus]: Upstream negative shows weak carbon black prices

Upstream negative shows weak carbon black prices

Lead: As of the receipt of the manuscript, the prices of N330 mainstream products in the carbon black market are 7,700 - 7,900 yuan/ton in Shandong; 7,600 - 7,800 yuan/ton in Shanxi; 7,900 - 8,300 yuan/ton in Hebei; 7,600 - 7,800 yuan/ton in Guangzhou; 7,500 - 7,700 yuan/ton in Zhejiang, all maintaining a relatively stable state.

Recently, some areas of the upstream raw material prices in the carbon black market have fallen, cost-side support has become slightly weak, and negative factors remain relatively strong; some companies in downstream demand have recently controlled production, and the overall enthusiasm for purchasing goods is insufficient. The market trading atmosphere is relatively deserted, and some factories have high spirits of lowering prices and purchasing goods. The weak supply and demand situation is difficult to change. The carbon black market has a weak mentality of supporting prices. Recently, carbon black prices have been weak.Maintain a weak state.The following is a brief description of the current carbon black market conditions and trends:

1. The trend of raw materials declines and cost support weakens

Judging from the upstream supply situation, the bearish sentiment in the high-temperature coal tar market has been relatively strong recently, and the actual trading atmosphere in the market has been relatively deserted. As Linhuan auction prices continue to fall, it has laid the foundation for the recent downturn in the high-temperature coal tar market to a certain extent., coupled with poor shipments of downstream products, strong terminal price suppression sentiment, and full of negative factors in the market, the coal tar market will continue to decline in the short term. Raw material prices fell within a narrow range, and cost-side support showed signs of fatigue, suppressing carbon black prices to a certain extent.

2. The downstream sentiment of purchasing goods is not high, and the main reason is to use them at will.

At the terminal level, semi-steel tire companies have started to maintain stability at a high level. There is still a shortage of some domestic specifications of the company. Some companies have gradually entered the final stage of snow tires. The overall situation is still in short supply, and the inventory is low. In terms of the market, terminal demand in China is insufficient, and downstream purchasing sentiment is not high, so it is mainly used and purchased at any time. The semi-steel tire market maintains bulk shipments, and agents continue to lack pressure. They mostly replenish goods appropriately based on their own inventory conditions, mainly focusing on completing tasks.

To sum up, carbon black companies will still maintain firm offers in the short term, and the market is still in a low and weak state.

Looking at the market outlook, in terms of raw materials, upstream coke companies at the raw materials end are expected to remain under pressure in the short term, and high-temperature coal tar output will decline. However, downstream deep processing companies at the raw materials end have insufficient rebound potential, terminal demand is weak, and upstream cost end is under pressure. Significant pressure, raw material prices may be expected to fall within a narrow range, and cost-side support is relatively limited; On the downstream demand side, semi-steel tire companies will still operate at a high level when starting operations to supply seasonal supplies. However, in terms of the spot market, China's terminal demand is insufficient, and downstream purchasing sentiment is not high, and the main choice is to buy as soon as possible. Judging from the current upstream and downstream supply and demand situation, the weak supply and demand situation is difficult to change in the short term, and the carbon black market has a weak attitude towards supporting prices. It is expected that some carbon black quotations may remain weak in the near future.