Two elements boost carbon black price
Industry insiders attributed rising carbon black prices to higher coke tar prices and environmental protection pressure in the first half of this year.
“To reduce losses caused by rising coke tar prices, carbon black producers lifted their prices,” says Ding Liping, secretary general of the Carbon Black Division of China Rubber Industry Association.
In the first quarter, China’s coke tar price grew rapidly and once hit 3,200 yuan/ton, according to figures released by Longxing Chemical.
As a result, carbon black prices rose 800 – 1,500 yuan/ton, hitting new record highs in recent years.
The coke tar prices in China decreased since the second quarter, and carbon black price also went down, but key carbon black producers maintained strong profitability.
In addition, strict environmental monitoring also boosted carbon black prices.
Producers without environmental protection equipment required had hard times.
There are nine loss-making producers with an overall deficit of 29.76 million yuan, according to the Carbon Black Division.
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