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Downstream Market Pressure Uplifts Global Carbon Black Value

Downstream Market Pressure Uplifts Global Carbon Black Value

  • 31-May-2022 5:51 PM
  • Journalist: Nicholas Seifield

As per the latest report of ChemAnalyst, the Carbon Black prices have significantly increased during the last few weeks due to increased demand from end-use industries. The analysis also shows that the price of Carbon Black has surged in India and Germany due to high demand from the automobile sectors coupled with rising inflationary pressure on convertors.

Recently, the price of tyres and automobiles has increased in India's domestic market due to the hike in cost of natural rubber, hiked by about 20% on year for FY 2022, and that of crude-based catalysts such as Carbon black and nylon tyre cord increased by 40-50%. These together report for about 70% of the raw materials used in the production of tyres. Moreover, the shortage of raw materials, Carbon Black and natural rubber disrupted the stability in the supply-demand chain and triggered a rise in raw material prices, increasing product prices.

In Germany, the price was hiked by 1.3% as of 27th May 2022 on weekly basis for the Carbon Black market due to the Russia-Ukraine war, which resulted in challenges to the global tyre industry concerning increased fuel prices and raw materials; this, in turn, has impacted the supply chain across the Black Sea. Furthermore, Russian exports of Carbon Black has been reduced into the European market on the back of growing geopolitical gulf between the two regions.

On the other side, China experienced stability in the prices of Carbon Black because of the increased price of Crude oil globally. As per the ChemAnalyst report, it is noted that the downstream domestic demand for the product remained dull, while ample queries from other Asian economies and trade disbalance driven the overall price stability. However, the tyre industry moderately recovered in May, there is still a gap contrasted with the normal situation, and the overall start-up load of the industry is low.

As per ChemAnalyst analysis, it is anticipated that global Carbon Black prices are likely to remain steady during the forthcoming month, as the current market scenarios are not going to vanish soon, and other raw material price remains unpredictable.

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