European Carbon Black Maintains Stability, Q4 Outlook may Turn Bullish

The European Carbon Black market showcased an overall stability during the week ending October 25^th, with limited spot trading activity and a continued ample supply. This price stability was largely driven by a lack of significant market disruptions and feedback from consumers indicating slow trading activity. Many consumers were focused on reducing their inventories as the end of the year approached, which contributed to the subdued demand for spot cargoes.

Spot market activity for Carbon Black was particularly slow, as consumers planned to destock ahead of the holiday season. With the extended Christmas break in Europe on the horizon, some tire industry players, a key sector for Carbon Black demand, were expected to shut down operations for the holiday period. One participant was expected to halt production for much of December. As a result, demand for spot Carbon Black cargoes remained limited throughout the week, with many buyers opting to postpone their purchases. At the same time, market participants were busy negotiating supply contracts for 2025, which further reflected the cautious market sentiment. In these contract negotiations, the pricing of Carbon Black was linked to various factors, including upstream energy prices, carbon costs, and logistical expenses.

The European Carbon Black market continued to benefit from the availability of imported material, especially from India and China. Throughout October, offers from these countries were heard, further easing supply concerns in the region. These imports helped sustain market stability despite the slower domestic production activity. On the upstream side, crude oil prices, which directly influence the cost of producing Carbon Black, remained volatile amid ongoing geopolitical uncertainties in the Middle East. Although this volatility could potentially affect future Carbon Black prices, the European N220 Carbon Black spot price for the week was also assessed at USD 1,490 per ton FD Hamburg, mirroring the stability in the market.

In conclusion, the European Carbon Black market for the week ending October 25 remained stable, supported by ample supply and limited demand. The slowdown in spot market activity, driven by year-end destocking and holiday shutdowns in the tire industry, helped keep prices unchanged. The import of material from India and China further contributed to maintaining supply levels. Ongoing negotiations for 2025 supply contracts, alongside the uncertainty in crude oil prices, suggest that the market will remain cautious in the near term. Despite these challenges, the European Carbon Black market is expected to remain steady or rise marginally on regular intervals in the short term.