Escalated Automotive Sales to Increase the Carbon Black Prices in the USA
- 18-Oct-2022 6:24 PM
- Journalist: Timothy Greene
Houston, USA: The market value of Carbon Black is likely to increase in the upcoming weeks in the USA market on the back of increased downstream demand from the automotive industry. The prices of Carbon Black, which had been declining for the past few weeks, finally stabilized during the week ending on 14th October 2022 and showcased positive market sentiments. The assessed price value of Carbon Black Hard Grade N220 was USD 3310/MT FOB Texas. As the USA domestic market has been experiencing strong automotive sales for a long time, the prices of commodities like Carbon Black are likely to rise.
Unexpectedly, sales of automobiles, particularly light vehicles, rose in the USA market in September 2022. Before August, the automobile sector had low inventory levels and was experiencing slow sales and productivity. Before, one of the key reasons why the production of automobiles was halted was the chronic scarcity of semiconductors, which led to low inventories. The inventory level in the automotive industry has increased as semiconductor supply has expanded and supply chains have strengthened. Strong customer demand and improved availability are the key elements driving auto sales. The country undoubtedly welcomed the news that September saw the most prominent auto sales since June 2021.
Furthermore, the USA has recently been experiencing barge traffic at Mississippi and Ohio rivers due to the persistent drought conditions. The water level on the Ohio and Mississippi rivers has been touching record lows, resulting in barge traffic and vessel berth delays. The low water level of these rivers halts the shipments from and to the USA, causing supply chain disruption for Carbon Black in the country.
As per ChemAnalyst anticipations, “The Carbon Black prices would increase significantly in the forthcoming weeks in the USA market backed by surged downstream demand from automotive industries and supply chain disruption owing to low water level at essential rivers causing vessel bunching.”