Carbon Black Weekly Report: Downward Trend Hard to Reverse(Sep 24)
Carbon Black Weekly Report: Downward Trend Hard to Reverse
1.1 Carbon Black Market Price Analysis
This week, domestic carbon black prices maintained a continuous decline. As of Thursday this week: Shandong region at 10,600 yuan/tonne; Shanxi region at 10,400 yuan/tonne; Hebei region at 11,000 yuan/tonne; Guangzhou region at 10,700 yuan/tonne; Zhejiang region at 10,600 yuan/tonne. The carbon black market began entering a downward trajectory this week. Raw material coal tar market new order prices showed a declining trend, with strong bearish pressure from the cost side. Bearish sentiment prevailed in the market, and the raw material market was also expected to continue falling, making carbon black transactions difficult. Resistance to new orders was pronounced, with limited just-in-time replenishment from downstream. Some enterprises postponed procurement plans due to scheduled maintenance. Bearish factors were prominent, and pre-holiday new orders maintained a downward trend.
This week, the high-temperature coal tar market also began entering a decline. New order auction prices in some domestic regions were confirmed lower. At present, downstream product sales faced resistance across the board, with prices continuing to fall. Anthracene oil inventory pressure was particularly severe, and deep-processing enterprises entered a loss-making situation. Coke plant shipment pressure increased this week, adding bearish factors to the coal tar market. With new prices still to be set next week and expected to continue falling, overall downstream buying remained negative. Bearish factors continued to accumulate, and the coal tar market was gradually returning to normal amid the downward trend.
Currently, the anthracene oil market for new orders continued to weaken. Raw material high-temperature coal tar new order prices were successively announced, mostly showing a declining trend. Anthracene oil manufacturers faced increasing shipment pressure and inventory buildup. Some manufacturers continued cutting prices to sustain sales. Under the ongoing resistance from downstream carbon black markets to high-priced anthracene oil, the anthracene oil trend was suppressed, with no market negotiations yet. The anthracene oil market was expected to continue declining in the short term.
Looking ahead to next week, domestic carbon black market new orders were running weak. Raw material coal tar new order declines were significant, with further downside room remaining. Downstream participants were bearish on the future market, with low enthusiasm for recent purchases. Moreover, more downstream enterprises were undergoing maintenance, reducing just-in-time demand. These factors kept new market orders in a weak state.
4. Carbon Black Industry N330 Profit Analysis
Taking the Shandong region as an example, the widening decline in raw material coal tar new order prices pushed the carbon black market into a downward channel. After carbon black new order prices were successively lowered, shipment pressure persisted. Downstream participants were bearish on the market with limited purchases, keeping carbon black new orders weak. Theoretical calculations showed that the carbon black market profit loss widened significantly. As of now, the theoretical weekly profit for the carbon black industry was -375 yuan/tonne, down 404 from the previous period.
5. This Week's Market Operating Rate Statistics
The operating rate of domestic carbon black sample enterprises was 58%, declining from the previous period. Raw material coal tar new order prices showed a declining trend, and previously high raw material prices had led to low raw material inventories. Downstream tire enterprise procurement volumes declined, reducing market operating enthusiasm. This period, a manufacturer in the Shandong region underwent maintenance, and a large North China plant reduced operating loads, leading to a decline in carbon black market operating data.
The operating rate of Chinese semi-steel tires was 63%. The operating rate of Chinese all-steel tires was 59%.
Some all-steel tire enterprises that had previously undergone maintenance remained in maintenance status. Additionally, with the double holidays approaching, some enterprises would successively enter the pre-maintenance wind-down phase, further dragging down tire operating rates. Only a few large enterprises maintained high operating rates to ensure regular product supply. Raw material cost pressure persisted, and with maintenance dates approaching for some enterprises, supply-side expectations pointed to continued weakening.
[New Ethylene Tar/Catalytic Slurry Pipeline Project Acceptance Notice]
Recently, the Quanzhou Municipal Ecology and Environment Bureau released the environmental impact assessment acceptance notice for Fujian Yingtai Advanced Materials Co., Ltd.'s new ethylene tar/catalytic slurry pipeline project.
The project is located in the Nanshan area of the Petrochemical Industrial Park, Quangang District, Quanzhou City, Fujian Province. Total investment is 10 million yuan, with environmental protection investment of 600,000 yuan and an estimated construction period of 6 months. A new ethylene tar/catalytic slurry raw material transport pipeline and accompanying heat-tracing steam pipeline will be constructed from Fujian United Petrochemical Co., Ltd.'s flare area pipe rack column 1466a to Yingtai's plant area Yuanzhong Road pipe rack column 1318, with a pipeline length of approximately 1.7 km. Additionally, a new steam pipeline will be constructed from Quanzhou Quangang District Zhengyuan New Materials Co., Ltd., passing along the outer wall of Fujian Kaimet Gas Co., Ltd.'s Phase II (south side of Tianying Road) in two routes: one to the United Petrochemical flare area pipe rack column 1466a, and the other to the park Yuanzhong Road pipe rack column 1332, with a pipeline length of approximately 1.9 km.
[Two Projects Simultaneously Announced! Yongdong Deepens Coal Tar-Carbon Black Industry Chain]
On September 16, the Jishan County People's Government official website released two construction project planning approval notices for Shanxi Yongdong Chemical Co., Ltd.: the coal tar fine processing and special carbon black comprehensive utilization project, and the 2x100,000 tonnes/year anthracene oil deep-processing project. Both projects are located within Yongdong's existing plant area in the Xishe Park of the Jishan Economic and Technological Development Zone. They belong to the downstream and upstream segments of the industry chain respectively, with coordinated linkage, further improving the company's integrated coal tar deep-processing and special carbon black industry chain layout.
Coal Tar Fine Processing and Special Carbon Black Comprehensive Utilization Project
This is a plant renovation and expansion project with a total investment of 293.89 million yuan, environmental protection investment of 30.75 million yuan, and a total footprint of 62,765.74 square meters. The main construction includes a 15,000 tonnes/year crude phenol refining production line, a 20,000 tonnes/year impregnating pitch production line, and a 70,000 tonnes/year special carbon black production line, along with energy-saving retrofits of existing plant equipment, and supporting workshops, tank farms, warehouses, utility facilities, and environmental treatment facilities.
The project primarily produces low rolling resistance carbon black, conductive carbon black, high color carbon black, and high-end product carbon black. Among these, high-performance low rolling resistance carbon black has a designed capacity of 40,000 tonnes/year; conductive carbon black and high color carbon black have a combined capacity of 30,000 tonnes/year; high-end product carbon black relies on existing production lines for flexible production conversion, without dedicated production lines or fixed capacity.
In addition to special carbon black products, the project simultaneously establishes production capacity for phenol, o-cresol, m/p-cresol, carbon black oil, and impregnating pitch, effectively extending the coal tar deep-processing value chain. The core raw materials required for production can be supplied internally from the de-crystallized anthracene oil output of the company's new anthracene oil deep-processing project, achieving in-plant self-supply. Upon completion, the project is expected to achieve annual sales revenue of 700 million yuan, tax revenue of 60.16 million yuan, and create over 100 new jobs. The main construction of the carbon black production line was completed by the end of 2024 and has gradually entered the trial production stage.
This is an expansion project with a planned total investment of approximately 200 million yuan, environmental protection investment of 6 million yuan, planned land area of 31,788.03 square meters, and total building area of 13,829.54 square meters. Two 100,000 tonnes/year anthracene oil deep-processing production lines will be constructed, with supporting anthracene oil crystallization, refined anthracene-carbazole separation, anthraquinone synthesis, and other core systems, as well as tank farms, utility facilities, and environmental treatment facilities. The project relies on anthracene oil output from the company's existing coal tar processing units, with no additional external coal tar procurement.
Upon completion, the project will produce 190,000 tonnes of de-crystallized anthracene oil, 5,000 tonnes of anthraquinone, and 2,000 tonnes of carbazole. The high-quality de-crystallized anthracene oil will be entirely used internally as the core raw material for downstream special carbon black production lines. Anthraquinone and carbazole are high-value-added fine chemical raw materials, widely used in dyes, photosensitive materials, PCB electronic inks, and high-end masterbatches.
As disclosed in the 2026 semi-annual report, the project's overall construction progress reached 45.69%, with main facility construction expected to be completed by the end of 2026, followed by trial production.
Project Synergy: Building a Coal Tar Fine Chemical Closed Loop
The two projects were simultaneously approved for construction planning, forming a clear upstream-downstream linkage system. The anthracene oil deep-processing project produces high-quality de-crystallized anthracene oil through purification and refining, addressing from the source the issues of unstable special carbon black raw material quality and high external procurement costs, ensuring the stability and cost advantages of high-end carbon black products.
Leveraging the internal raw material self-supply system, the special carbon black project can focus on high-growth sectors such as green tires, new energy lithium batteries, high-end coatings, and rubber-plastic products, continuously optimizing the company's product structure. This weakens the impact of cyclical fluctuations in traditional general-purpose carbon black, significantly enhances the added value and market risk resistance of the company's coal tar deep-processing and high-end carbon black business, and consolidates Yongdong's leading position in coal tar fine chemicals and special carbon black.
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