Under the attack of rising raw material prices and reduced downstream demand, the carbon black industry faces industry wide losses, and the related listed companies’ performance in the first three quarters declined.
On October 14, domestic carbon black enterprises Longxing Chemical and Yongdong Co., Ltd. issued the performance forecast for the first three quarters.
Data shows that the net profit attributable to shareholders of listed companies of Longxing Chemical is expected to be 18 million yuan – 26 million yuan, down 81.64% – 73.48% year on year. In the same period last year, the profit was 98.0242 million yuan.
The net profit of Yongdong shares attributable to the listed shareholders is expected to be 65.4757 million yuan – 75.4757 million yuan, down 71.38% – 67.01% year on year. The profit of the same period last year was 60.8606 million yuan.
On October 15, black cat Co., Ltd. issued the performance forecast for the first three quarters of 2019: it is estimated that the highest net profit loss is 136 million yuan, and the profit of the same period last year is 440 million yuan. According to the announcement, during the period of performance forecast: from January 1, 2019 to September 30, 2019, the net profit loss attributable to shareholders of the listed company is 116 million yuan – 136 million yuan, and the profit of the same period of last year is 440 million yuan.
| poly gamma glutamic acid |
Black cat carbon black, Longxing Chemical, Yongdong shares, profitability has declined to varying degrees.
From January to February 2019, due to the sharp decline in the early stage of raw coal tar, the price of raw coal tar has increased since then, but due to the Spring Festival holiday, there are many downstream overhauls, and the purchase volume of carbon black has decreased, which makes the price increase of carbon black unrealized and the market price temporarily stable. From March to June, due to the high price of raw materials, the high cost pressure of carbon black, and the rising market price of carbon black, but due to the reduction of downstream demand, the market price of carbon black was severely depressed, coupled with the low price competition in the market, the increase of carbon black price was limited. In the second half of the year, due to the decrease of downstream demand and the off-season of downstream demand in July and August, the trend of easy falling and hard rising of carbon black will continue.
The whole carbon black market profit in the first three quarters of 2019 is in the situation of more loss and less gain. In particular, in the first quarter, a number of listed companies released news that carbon black suffered serious losses and corporate profits fell more than last year.
Why carbon black market loses so much depends on the most important downstream tire market.
| Poly glutamic acid |
Recently, the National Bureau of statistics released the first half tire sales data. In the first half of 2019, the sales volume of rubber tire outer tubes in China totaled 404679000, down 5.4% year on year compared with 42755600 in the same period of last year; the production and sales rate increased 100.4%, down 3.6% compared with that in the last quarter; the ending inventory decreased 3% compared with the beginning of the year. Destocking has become an industry consensus.
In the first half of 2019, the start-up of the terminal tire market is lower than that of last year. In the first half of the year, due to the decrease of terminal automobile sales and factors such as trade, the start-up of tire factories declined. Due to the decline of construction, the demand for carbon black in the tire market in the first half of the year decreased by 706600 tons compared with last year, which greatly reduced the demand, limiting the growth of the whole carbon black market and causing serious losses.
| Polyglutamic acid |