How carbon black prices influenced the Asia Pacific Black Masterbatch Market

Prices of Black masterbatch have seen a surge in the month of March on the back of a sharp increase in the prices of carbon black since the first week of March in the APAC region. Demand from the agriculture sector remained sluggish throughout Q1 as the period coincides with the off-season for cropping. The other major downstream sectors such as aviation and automotive sectors have been lurching for growth in the new year as soaring oil and gas prices have dented new investments into these sectors.

Rising natural gas and crude oil prices have burdened the producers of carbon black as feedstock costs have risen through the roof causing processing margins to be squeezed to historical lows in the month of March. This prompted the producers to pass on higher costs to the downstream compounding market. Black masterbatch (40% carbon black, universal grade) prices have been heard in the range of INR 110/KG to INR 120/KG in the month of March while the prices of Black Masterbatch (50%) have been assessed in the range of INR 160/KG to INR 170/KG in the month of April.

Chinese market too had seen a commensurate price trend with prices of Black masterbatch rising in the month of March on the back of a sharp rise in the carbon black prices. The average price for the month of March for Black masterbatch (40% carbon black) was assessed at USD 900/MT to USD 950/MT on an FOB Ningbo basis. Further upward revision in contracts offered by producers is expected in the early April period as crude oil and natural gas prices are expected to find higher range limits during that period which could mean higher carbon black prices.