Price of Masterbatch Shows Mixed Sentiments Across Asia
- 11-Apr-2023 1:44 PM
- Journalist: Kim Chul Son
From the beginning of 2023, the Masterbatch market in Asia, particularly India, and China, has shown mixed pricing trends. The pricing trend for Masterbatch in the Indian domestic market has been bearish because of lower demand from the region's downstream electronics, packaging, and rubber industries. Black Masterbatch (40% Carbon Black) was priced at USD 1977 per tonne in January 2023; however, by February 2023, the price had dropped by 10.5% and was USD 1770 per tonne. Again in March 2023, prices fell 6.9% to USD 1648 per tonne due to falling Naphtha and Coal prices in the domestic Indian market.
In comparison, the prices of Masterbatch in the Chinese market have constantly been growing as domestic market activity has revived following the Chinese New Year. The factories are also operating at full capacity due to a surge in demand from the packaging, electronics, and rubber industries from both domestic and foreign market participants.
Black Masterbatch (40% Carbon Black) FOB Tianjin (China) was quoted at USD 1201 per tonne in January 2023. By February 2023, the price had increased by 4.2% to USD 1251 per tonne. Despite uncertain economic conditions and a gloomy demand outlook worldwide, prices in the Chinese domestic market increased by 5.1% in March, settling at USD 1315 per tonne.
According to the market participants, stable market sentiments are foreseen in the region, and a surge in demand from various segments of industries is anticipated. The use of biodegradable Masterbatch, advancements in the technology of the plastics industry, and the use of plastic in the automobile industry all support the market's growth. For instance, Ampacet, a global Masterbatch leader, designed a high-voltage orange PBT (Polybutylene Terephthalate), a thermoplastic engineering polymer that is used as an insulator in electrical and electronic equipment wherein orange color specifications easily identify high-voltage hazards.