China top 3 Carbon Black companies post profit diving in 2019

On April 29, China's top 3 carbon black companies all released their annual reports. 

Annual report showed that Black cat sold 960,000 tons of production in 2019.

As the dragon company in carbon black industry, the company realized 6.5 billion yuan of sales revenue in 2019, year-on-year increasing 17.09%, and 276 million yuan of net profit, yearly diving 168.89%

Shanxi Yongdong Chemicals Co.,Ltd. posted 2.86 billion yuan of sales revenue, yearly increasing 10.4%, and 91,036,000 yuan of net profit, yearly decreasing 67.24%.

It is the first time for Yongdong Chemicals to realize sales revenue surpassing Longxing Chemicals.

The company sold 330,000 tons of carbon black in 2019, yearly increasing 19.1%.

Meanwhile, Longxing Chemicals posted 2.8 billion yuan of sales revenue in 2019, yearly decreasing 9.07%, and 19,221,200 yuan of net profit, yearly declining 85.52%.

The annual report said Longxing Chemicals sold 450,000 tons of carbon black, listing China's second carbon black producer.

The three companies said that over-supplied carbon black production led to the companies' revenue decrease.

In 2019, China's carbon black production was over supplied, which led to low price competition in China and producers' gross margin largely decline.