For the Quarter Ending March 2022
North America
In the US, Carbon Black market fluctuated in the first quarter of 2022 as prices declined in January and February to USD 2555 per MT on FOB basis while market rebounded in March as prices rose to USD 2645 per MT. In the first half of the quarter, sluggish demand, and stable supply paved way for price deterioration however increased cost pressure towards H2 of the quarter along with flattening of supply dynamics resulted in strengthening of prices. Meanwhile, demand from downstream tire industry remained stable during the first three months of 2022. Replacement tire segment has been leading the tire industry as stable to weak automotive output hindered Original Equipment (OE) tire demand. Imports of Carbon black from Asia and Europe remained weak as freight charges rose persistently during the first quarter after observing some stability in later stage of December 2021.
Asia Pacific
Carbon Black market has been termed as firm owing to strong demand and supply fundamentals after sluggish start to the first quarter of 2022. Production levels have been optimum as none of the manufacturers reported any major production disruption. Cost pressure has been healthy from upstream coal tar and other feedstock which increased the overall prices of downstream Carbon Black. Meanwhile, exports of the material remained on the higher side given the growing demand of tires in neighbouring nations including Vietnam, Sri Lanka, Thailand, and others. Hence, prices have been firm and were assessed on last week of February at INR 133900 per MT Ex-Mumbai for Hard Grade Carbon Black. In China, Carbon black started the quarter on a lacklustre note owing to sluggish demand fundamentals and ample supply in the domestic market. However, a drastic change in market sentiment has been observed in the later stages as Chinese market witnessed similar market pattern where Carbon Black prices started the quarter on a sluggish note however pricing sentiments accelerated on the back of firm feedstock coal tar prices and healthy demand. Therefore, Carbon Black prices increased to USD 1520 per Mt on FOB basis during Q1 of 2022.
Europe
During the first quarter, Carbon Black market witnessed firm pricing dynamics in the European region owing to strong cost pressure from feedstocks and stable to firm demand from downstream tire industry. LNG and crude oil, upstream for Carbon Black, have been termed as volatile throughout the quarter therefore, Carbon Black prices gained significantly and were assessed at USD 1710 per MT on FD basis. Imports from Russia remained weak as the political and economic differences grow firmer between Russia and the West since the beginning of Ukraine invasion. On demand side, tire industry output remained stable to firm and replacement tire segment witnessed hefty growth during the first quarter of 2022 meanwhile original equipment tires consumption remained sluggish due to the underwhelming performance of automotive industry.
For the Quarter Ending December 2021
North America
Goodyear, Michelin Tyres and other manufacturers enjoyed significant growth during 2021 however Q4 showed mixed results. Tire industry weakened in the last quarter owing to sluggish demand from automotive sector which struggled with global semiconductor shortage. Replacement tire growth from heavy vehicles, particularly trucks slowed down which remained strong in the earlier quarter. Consequently, prices of carbon black dropped to USD 2530 per MT in December.
APAC
Carbon black prices continue their upward trend in India throughout Q4, gaining from the strong consumption intakes from downstream tire manufacturing as manufacturers enjoyed strong performance throughout the year in the wake of rapid economic recovery in the Indian sub-continent. Prices of Carbon Black N220 Hard Grade were assessed in December at INR 152000 per MT Grade Ex-Depot Mumbai. Supply fundamentals have improved as Continental Carbon increased production rates availing ample material in the market after a product slump during the quarter. Declining raw material coal tar prices and weakened downstream demand from tire industry have culminated into bearish Q4 for Carbon Black where prices fell to USD 1430 per MT in December 2021 on FOB basis.
Europe
Carbon black market in Europe weakened in the last quarter where prices in December declined to USD 1670 per MT on FOB basis. Feedstock prices stabilized in the quarter after a volatile Q3. Tires consumption across Europe declined in Q4 as automotive industry struggled with global chip shortage which plagued the key sector of growth worldwide throughout the year. Both replacement tire and original equipment tire demand stagnated towards the Q4 owing to traditional off season consumption decline in the last quarter.
For the Quarter Ending September 2021
North America
The North American market witnessed a significant rise in the prices of Carbon black in the 3rd quarter of 2021. Orion Engineered Carbons, a global supplier of carbon black products announced on 16th August that effective September 15, 2021, the company will be increasing prices on all Carbon black products produced in North America. Higher operating costs correlated with recently installed emissions control systems and associated capital investments led to the increment in the base prices and environmental surcharges for carbon black. In addition, higher logistics costs further raised price assessments across the North American region. FOB USGC price for Carbon Black were averaged around $800 per MT in July.
Asia
In the Asia Pacific region, the prices of Carbon Black rose effectively during the third quarter of 2021. In the Indian market, the prices demonstrated another major climb towards the end of September due to bullish demand from the downstream automotive industry and an abrupt plant closure. A respondent mentioned temporary closure of a Carbon Black unit in India in September which led to some tightness in available supplies. The abrupt closure stressed several buyers over the availability of Carbon Black at the peak time of its favourable downstream demand. Carbon black high-grade prices escalated from USD 1414/MT to USD 1485/MT from July to September. However, since all other plants have been running at maximum capacities, the supply is likely to restore soon.
Europe
During Q3 2021, the overall market outlook of Carbon Black demonstrated an upward trajectory across the European region. Effective for all shipments on or after August 26, 2021, Cabot Corporation increased the prices of all Carbon Black products sold across Europe and rest of the world. This price hike was necessitated by the rapid increase in costs including raw material, transportation and logistics, and operational costs across all products and regions.
For the Quarter Ending June 2021
North America
North American market encountered a steep rise in prices of Carbon Black during Q2 2021, backed by rising production and firm demand from downstream sector. During this quarter, prolonged production hindrance played an important role in raising the cost of several raw materials used in tire manufacturing segment in USA. Tire sector showcased a firm rise in offtakes in the meantime following the recovery in automotive sector, which increased the demand for downstream products across the region. In addition, jump in crude oil prices and rising production cost also left additional impact on the prices of Carbon Black in the North America region. Therefore, the price of Carbon Black grade N-351 rose from USD 1415/MT to USD 1686/MT during this timeframe.
Asia
Asian market faced mixed sentiments during this quarter, where price trend varied country by country. In China, prices of Carbon Black reached its peak during the month of May. The price rise was backed by rising production cost, freight, logistics issues along with limited product availability after plant shutdowns of Jinneng Science & Technologies, and Shandong OCI Jinyang. Meanwhile, Indian market battled with second wave of pandemic, which reduced the demand for Carbon Black from tire manufacturers in India, especially during May. Later, during second half of June, prices started rebounding, as the demand improved with gradual resumption in market activities. Therefore, by the end of quarter, prices of Carbon Black hovered around USD 1343/MT and USD 1312/MT for hard grade N-220 in China and India, respectively.
Europe
During this quarter, European Carbon Black manufacturers raised their product prices, backed by revival in demand from tire manufacturers after pandemic. European tire manufacturers experienced an effective recovery from pandemic, which increased the demand for Carbon Black across the European region. Major manufacturers like Orion and Cabot announced increment in their prices for EMEA, effective from 1st of July 2021. Where Orion increased their average price by USD 130/MT. The rise was primarily influenced by global hike in freight, logistics and production costs.
For the Quarter Ending March 2021
North America
The Carbon black market of North America remained moderate to firm during Q1 2021. Freezing weather across Texas halted the production activity and created global shortage of almost all prime petrochemicals. Meanwhile, the demand for Carbon black from tyre manufacturers remained mild to low during this period, due to constrained production of tyres. Thus, the prices took a short leap of 3.34% and settled at USD 1390/MT till March end. On the other side, South Korean carbon black giant Hankook tire & technology announced a plan to double their plant capacity by investing USD 91 million in their Tennessee-based production unit, this will improve the supply activity of Carbon black across the region.
Asia
The Asian Carbon black market remained consistently strong throughout the quarter, where market sentiments of tyre manufacturers remained uplifted. Chinese manufacturer’s sentiments were enhanced after the announcement from the Indian government after they decided to not impose antidumping duty of USD 494/MT on Carbon black imports from China. Although shortage occurred after Chinese Lunar year which led to prices to rise effectively. The average price of carbon black increased from USD 1330 per MT (January 2021) to USD 1365 per MT (March 2021). Meanwhile in the Indian market carbon black giant, Birla Carbon announced to increase their Carbon Black prices by 9%, with effective from 19th April.
Europe
Europe had witnessed mild to low demand for Carbon black from the tire manufacturing sector. Although feeble supply supported the prices to rise effectively, lower domestic supply and lower imports from US amidst freezing weather forced local manufacturers to raise their Carbon black prices. Responding to the global surge in Carbon black rates, Orion Engineering carbon, a big market player of Europe, increased its high-performance Carbon black prices by 20% globally, which came into effect starting 1st March 2021.
For the Quarter Ending September 2020
Asia
Against the backdrop of continued global recession in the automobile industry, the Asian Carbon Black industry registered substantial gains compared to its Q2 performance. Sharp pick-up in demand for replacement tires seemed potentially significant to negate the impact of COVID-19 outbreak on the automotive supply chain. The demand for Rubber Carbon Black & Specialty Carbon Black in China has recently gained traction because the COVID recovery rate in China turned in favor. Producers reported considerable benefits from a sudden consumer shift towards personal mobility as economies opened to lift lockdown restrictions. With ASEAN and China being important markets in terms of tires and Carbon Black trading, Carbon Black prices picked up in India to assess around USD 1250 per MT CFR.
North America
The North American Carbon Black markets witnessed back-to-back increment in the product prices during Q3 2020. The uptrend seemed strongly supported by increasing cost of operations, labor, and tightening environmental regulations in line with the revision of sustainable manufacturing standards. Cabot announced upwards revision in the Carbon Black pricing in mid-August equivalent to USD 66 per tonne, amid better capacity utilization on the back of recovering rubber tire manufacturing in the US. In addition, Tokai Carbon – the largest carbon black producer in North America, announced rise in prices for all its Carbon Black products in the US by USD 40-50 per tonne during the quarter. This was primarily due to tighter regulations imposed on the bunker fuel oil Sulphur content by international Marine Organization (IMO). On the demand front, manufacturers observed that demand for Carbon Black recovered rather well in Q3, versus the historic plunge experienced during the second quarter.
Europe
The European Carbon Black market was struggling to maintain its margins as the economy battled to stand against the COVID-led headwinds. The third quarter outlook however, seemed to gain strength from the tyre applications as driving remained the preferred mode of transportation with people preferring to maintain stringent physical distancing amid surging cases. Demand for Carbon Black for manufacturing ink for printed materials remained an area of weakness, keeping the specialty Carbon Black sales largely pressured.
