According to data monitored by Business Society, on April 28th, the domestic carbon black N220 quotation was 10066 yuan/ton, and the raw material price continued to decline. The cost support performance of carbon black became increasingly weak, and the domestic carbon black market declined this month.

Cost: The market price of raw material coal tar has fluctuated and declined this month. The market of high-temperature coal tar major downstream deep processing coal tar pitch products has gradually weakened. Some downstream deep processing enterprises have stopped for maintenance, and the demand for raw materials has decreased significantly compared with the previous period. At present, downstream factories are still passive in receiving goods. Overlapping enterprises have a large inventory backlog, which depresses the market price of coal tar. In the short term, the market is still difficult to find good support, and the market is pessimistic.

Supply and demand side: Currently, the overall operating rate of carbon black enterprises remains stable, with most carbon black enterprises maintaining normal operating levels. Some factory equipment maintenance is affected by the downward price of raw materials, and the carbon black market continues to fluctuate. Downstream procurement enthusiasm is not high, and many are bearish on the future market of carbon black, resulting in weak supply and demand in the carbon black market. Because most carbon black enterprises still have some high priced raw material inventory and carbon black produced by high priced raw materials in the early stage, although the price of raw materials has bottomed out, the cost of carbon black production is still high, so most carbon black enterprises are still under cost pressure, and the business offer is relatively firm, and the downward range of carbon black market price is limited. Carbon black enters a dilemma.

In terms of downstream tire companies, the overall operating rate remains stable, but due to the weak fluctuations in carbon black prices, there is currently no significant positive trend on the market. Recently, the inventory level of finished products has been reasonable, but the demand in the terminal tire industry is weak. The enthusiasm of enterprises to purchase goods is generally cooled, and the market may still operate weakly.

Overall, there has been a significant decline in raw material prices, weakened support for carbon black cost prices, and intensified bearish sentiment at the end. Both supply and demand sides are dominated by bearish sentiment, and there are currently no positive signs on the market. Overall, it is expected that carbon black will operate in a weak position in the short term.