For the Quarter Ending September 2024
North America
In Q3 2024, the North American carbon black market witnessed a decline in prices from the beginning of the quarter, with significant factors influencing this trend. Market conditions were primarily influenced by lower crude oil prices, reduced demand in the automotive sector, and heightened competition from imports, particularly from Asia. The decrease in tire demand domestically, coupled with higher inventory levels, led to a downward pressure on prices.
In the USA specifically, price changes were most pronounced, reflecting overall trends in the region. Notably, there was an 8% drop in the quarter’s ending prices compared to the same quarter last year, while the quarter-on-quarter change in 2024 showed a decline of 4.5%. The prices peaked in the middle driven by higher freight as well as import prices, while the second half observed gradual decline in prices and stabilization. The quarter ended with Carbon Black Hard Grade N220 FOB Texas priced at USD 1850/MT, underscoring the negative pricing environment prevalent throughout Q3 2024.
Cabot faced technical difficulties in the month of September and several plant outages and lower refinery runs has kept the cost pressures up for the next quarter. US will be facing a general election due in Q4 which has kept the suppliers holding on to the present prices.
APAC
In Q3 2024, the APAC region witnessed increasing prices for Carbon Black, driven by a combination of factors. The market was influenced by ample supply, stable production costs due to lower coal tar and crude prices, and sluggish demand from tire and rubber manufacturers. These factors created an oversupply situation, leading to stable prices. However, Japan experienced the most significant price changes in the region. A 10% drop of the quarter ending price compared with last year reflect, price deflationary pressure persists in APAC due to weaker demand and easing RFO, coal tar and other feedstock prices and 1.5% gains in carbon black N220 grade prices from the previous quarter’s ending price in 2024. Japan saw a price drop in the first half of the quarter, followed by a bullish rally in the second half. This trend indicates a mixed sentiment driven largely by plant outages and Autumn festivities celebration in the latter half. The latest quarter-ending price for Carbon Black Hard Grade N220 CFR Tokyo in Japan stood at USD 1380/MT, reflecting a positive sentiment towards increasing prices in the region.
Europe
In Q3 2024, the Europe region witnessed a decline in the prices in the third quarter driven by lower import prices, especially from India and Thailand. Several factors influenced this downward trend. Slowing demand for tires, reduced car sales, and easing crude and naphtha prices were key drivers. In this context, the market in Netherlands saw the most significant price changes, with a 7% decrease from the previous quarter. While the 24% increment in the quarter end price compared to previous year. Elevated Carbon black N220 grade prices were driven largely by EU sanctions on Russia and longer lead times for imports from APAC Seasonality played a role, with the second half of the quarter showing a decline of 8%. The first half remained relatively stable with price bullishness of 1.2% at the peak trading season in August. This overall trend of decreasing prices in the Carbon Black market in Europe reflected a negative sentiment. The latest quarter-ending price for Carbon Black Hard Grade N220 FD Rotterdam in Netherlands stood at USD 1440/MT, indicating supply stabilization. The market outlook suggests continued moderation in prices as demand softens and supply stabilizes, leading to a challenging pricing environment for Carbon Black in the region.
MEA
In Q3 2024, the MEA region witnessed a decline in the prices in the third quarter driven by lower import prices, especially from India and Thailand. Several factors influenced this downward trend. Slowing demand for tires, reduced car sales, and easing crude and naphtha prices were key drivers. In this context, the market in United Arab Emirates saw the most significant price changes, with a 7% decrease from the previous quarter. While the 24% increment in the quarter end price compared to previous year. Elevated Carbon black N220 grade prices were driven largely by EU sanctions on Russia and longer lead times for imports from Russia as well as APAC. Seasonality played a role, with the second half of the quarter showing a decline of 8%. The first half remained relatively stable with price bullishness of 1.2% at the peak trading season in August. This overall trend of decreasing prices in the Carbon Black market in Europe reflected a negative sentiment. The latest quarter-ending price for Carbon Black Hard Grade N220 CFR Jebel Ali in United Arab Emirates stood at USD 1440/MT, indicating supply stabilization. The market outlook suggests continued moderation in prices as demand softens and supply stabilizes, leading to a challenging pricing environment for Carbon Black in the region.
For the Quarter Ending June 2024
North America
The second quarter of 2024 for the North American Carbon Black market has been characterized by a mixed trend driven by a combination of factors. Prominently, rising crude oil prices have cascaded through the supply chain, inflating production costs. Additionally, labor strikes, particularly in railway sectors, have disrupted supply routes, thereby constrained availability and fostering a tighter market. Increased global freight costs have further exacerbated the situation, deterring imports and compelling local suppliers to adjust prices upwards. Moreover, robust demand from tire manufacturers, buoyed by a recovering automotive sector, has enhanced market dynamics.
Focusing on the USA, the market has experienced significant price volatility. Seasonal factors such as increased travel demand during the summer months have inherently bolstered tire sales, thereby escalating the demand for Carbon Black. Concurrently, market sentiment has been influenced by inventory adjustments and speculative buying in anticipation of further supply disruptions. Despite a 6% decrease compared to the same quarter last year and a -2% change from the previous quarter, the market environment has remained positive, with prices stabilizing towards the latter part of the quarter.
A comparative analysis within the quarter shows a 2% price increase from the first to the second half, reflecting heightened demand pressures and constrained supply. The quarter concluded with Carbon Black Hard Grade N220 prices at USD 1890/MT FOB Texas, underscoring a stable yet bullish pricing environment. Overall, the second quarter of 2024 has seen prices progressively stabilizing after initial fluctuations, setting a firm foundation for subsequent market movements.
APAC
During Q2 2024, the Carbon Black market in the APAC region has experienced an overall downward trend in pricing, primarily driven by several pivotal factors. Supply chain dynamics, notably inventory adjustments by rubber producers prioritizing exports to the US, have significantly influenced market prices. The imposition of additional tariffs on Chinese rubber goods by the US has led to regional oversupply as shipments are delayed, further pressuring prices. Additionally, easing feedstock price pressures, driven by lower crude and natural gas prices, have contributed to the bearish sentiment. The market has also been affected by high inventory levels and subdued demand for tire production, reflecting a broader sluggishness in the automotive sector. Japan, in particular, exhibited pronounced price changes in Carbon Black, making it the focal point of this trend. The overall market sentiment in Japan this quarter has been negative, with a 6% decline compared to the same quarter last year and a stable yet unfavorable price movement from the previous quarter of 2024, showing 0% change. Within the quarter, a further 3% price drop from the first to the second half underscores the persistent downward pressure on prices. Seasonal factors, such as weaker consumer demand and heightened inventories, have exacerbated this trend. The latest price for Carbon Black Hard Grade N220 CFR Tokyo at the quarter's end is USD 1360/MT. This persistent decrease in prices underscores a negative pricing environment, reflecting the broader challenges faced by the Carbon Black market in Japan and the APAC region during Q2 2024.
Europe
In Q2 2024, the European Carbon Black market experienced significant price increases, driven by multiple influential factors. The primary driver was heightened demand, especially from the tire manufacturing sector, which saw a seasonal uptick as automotive production geared up for summer. Additionally, geopolitical tensions and subsequent trade disruptions, particularly affecting supply routes and logistics from Russia, further tightened market availability. Crude oil price inflation also exacerbated cost pressures, leading to higher production and transportation costs for Carbon Black. Focusing on Germany, this quarter witnessed the most pronounced price changes within the region, reflecting an overall bullish sentiment. The replacement tire market's recovery, coupled with a robust industrial production rate and positive economic indicators, has sustained high demand levels. This strong demand was complemented by supply constraints due to geopolitical instability, which created a perfect storm for escalating prices. The price trend within the quarter showed a marked increase, with a 4% price differential between the first and second halves, highlighting the accelerating upward trajectory. Year-over-year, prices surged by 9%, while the increase from the previous quarter was a notable 14%, signaling a sharp rise in costs within a relatively short timeframe. By the end of the quarter, the price for Carbon Black Hard Grade N220 FD Hamburg closed at USD 1530/MT. Overall, the pricing environment for Carbon Black in Q2 2024 has been overwhelmingly positive, characterized by strong market demand and constrained supply, leading to sustained upward pressure on prices.
MEA
The second quarter of 2024 has witnessed a notable escalation in Carbon Black pricing within the Middle East and Africa (MEA) region, primarily driven by a confluence of supply chain disruptions, geopolitical tensions, and increased domestic production costs. The global supply tightness, exacerbated by logistical challenges and elevated freight costs, has been a pivotal factor influencing the market prices. Furthermore, rising energy costs and the strategic pricing by suppliers in response to robust demand have compounded the upward pressure on Carbon Black prices. In the United Arab Emirates (UAE), the impact has been particularly pronounced, with Carbon Black N220 Grade CFR Jebel Ali experiencing significant price volatility. The overall trend in the UAE has been characterized by a consistent upward trajectory, influenced by seasonal demand fluctuations associated with the summer travel and tourism surge. The correlation between heightened transportation needs and increased tire production has been a key driver of price increments. From a year-on-year perspective, the prices have surged by 22%, reflecting a substantial escalation from the same quarter last year. Compared to the previous quarter in 2024, there has been a recorded price increase of 13%, indicative of persistent upward momentum. Additionally, the price differential between the first and second half of the quarter stands at 4%, underscoring the sustained price elevation.
Conclusively, the latest quarter-ending price for Carbon Black N220 Grade CFR Jebel Ali in the UAE is USD 1550/MT, marking a robust pricing environment. The overall sentiment in the MEA region has been undeniably positive, characterized by a bullish market outlook driven by supply constraints and unwavering demand.
For the Quarter Ending March 2024
North America
The first quarter of 2024 has been a challenging period for Carbon Black in the North America region, as prices continued to decrease. Several factors have influenced the market, leading to a negative pricing environment. In the USA, which has experienced the most significant price changes, overall trends have shown a consistent decline in prices. One of the main reasons for the price decrease is the weakening demand for Carbon Black, particularly in the EV and battery markets. Technical glitches in EV vehicles, such as those experienced by Tesla, have resulted in recalls and reduced procurement of carbon black components. Additionally, high fuel costs and declining consumer sentiment have led to a slowdown in the replacement tire market.
Supply has remained stable, although there have been some challenges with delayed deliveries due to the Suez Crisis and the need to cut inventories to remain financially viable. However, the overall supply situation has not been enough to counter the decreasing demand. Looking at the price changes, there has been a significant decline compared to the same quarter last year, with prices down by 13%. From the previous quarter in 2024, prices have fallen by 15%. There has also been a decrease in prices between the first and second half of the quarter, with a 6% decline.
As the quarter comes to an end, the latest price for Carbon Black Hard Grade N220 FOB Texas in the USA stands at USD 1870/MT, reflecting the continued downward trend in prices. Overall, the pricing environment for Carbon Black in the North America region has been negative, with decreasing prices driven by weak demand and stable supply.
Europe
The first quarter of 2024 has been a period of increasing prices for Carbon Black in the Europe region. Several factors have influenced the market prices during this period. Overall, there has been positive sentiment in the pricing environment, with prices showing a consistent upward trend. In the Netherlands, which has seen the maximum price changes, the market has experienced overall positive trends. Demand for Carbon Black has been strong, driven by recovering demand in the replacement tire market and the rebound in the construction sector. Additionally, the transition to sustainable practices and the increasing demand for energy storage solutions have further boosted the demand for Carbon Black in the country.
In terms of price changes, there has been a significant increase compared to the same quarter last year, with prices rising by 20%. From the previous quarter in 2024, prices have increased by 23%. Moreover, there has been an 8% price increase in the second half of the quarter compared to the first half. As of the end of the quarter, the price of Carbon Black Hard Grade N220 FD Rotterdam in the Netherlands stood at USD 1360/MT.
Overall, the pricing environment for Carbon Black in the Europe region during Q1 2024 has been positive, with increasing prices driven by strong demand and market trends in the Netherlands.
Asia Pacific
The first quarter of 2024 has seen a mixed sentiment in Carbon Black pricing in the APAC region. The downward movement in carbon black prices triggered by Lunar New year induced slump early in the quarter was significantly offset by restocking in the latter half of the quarter. Demand initially fell by 8 to 10% in volume terms, while the gains in the latter half offset demand situation significantly
Looking at the price changes within Q1 2024, there has been a 6% decrease compared to the previous quarter. Additionally, there has been a 10% decrease in prices between the first and second half of the quarter. These trends indicate a consistent decline in Carbon Black prices throughout the quarter.
As of the end of the first quarter, the price of Carbon Black Hard Grade N220 CFR Tokyo in Japan stands at USD 1460/MT. This reflects the overall negative sentiment in the market, with prices continuing to decrease. Overall, the pricing environment for Carbon Black in the APAC region has been negative in Q1 2024, with declining demand and oversupply leading to downward pressure on prices.
Middle East and Africa
The first quarter of 2024 has been a period of increasing prices for Carbon Black in the MEA region. Several factors have influenced market prices during this period. Firstly, there has been a tightening of global supplies, leading to limited availability and higher prices. Exporters have also strategically adjusted their pricing to take advantage of the tightening market conditions. Additionally, demand for Carbon Black has remained positive overall, although there has been a slight slowdown in certain markets, possibly due to seasonal factors such as Ramadan festivities. In the United Arab Emirates (UAE), Carbon Black prices have seen the maximum price changes. Prices have been on an upward trend, although at a slower pace. This increase is driven by tightening global supplies and strategic pricing by exporters. Despite the slight slowdown in demand, suppliers have held firm in their pricing strategy.
Looking at the overall trends for Q1 2024, there has been a 5% decrease in prices compared to the same quarter last year. However, there has been an 18% increase in prices compared to the previous quarter in 2024. Furthermore, there has been an 8% price increase between the first and second halves of the quarter.
As of the end of the quarter, the latest price for Carbon Black N220 Grade CFR Jebel Ali in the UAE stands at USD 1380/MT. The pricing environment for Carbon Black in the MEA region has been positive, with increasing prices driven by tightening supplies and strong demand.
For the Quarter Ending December 2023
North America
Prices of Carbon Black showed bullish market sentiment in Q4FY23 largely owing to falling mortgage rates and increased consumer spending. In the month of October, price rise in the carbon markets was largely due to past deliveries of orders as US Auto Union strikes ended, depleting the carbon black inventories with the major tire suppliers. Alongside, EV demand also remained stable.
Energy and crude oil prices started declining amidst strong inventory reserves by EU for the winter and delayed requirements for heating oils. Consumer gasoline and electricity prices started deflating, while mortgage rates remained on the higher end, consumption and private vehicular movements remained restricted keeping down the consumer driven carbon black markets.
In the month of November and December, energy prices depleted further, mortgage rates fell, demand for private vehicular movement went up with consumers willing to spend for leisure and travel activities. Replacement tire markets showed uptick reflected which pulled up the prices of carbon black in the given months. By the end of December, demand of carbon black turned down amidst rising supply challenges due to Houthi attacks, slowing of demand from EV section and falling replacement tire demand as Winter surged subduing carbon black markets and overall demand sentiment. US Federal Reserve signaled a delayed rate cuts program largely owing to global uncertainties and inflationary pressure in energy and food prices.
Europe
Prices of Carbon Black in Europe showed mixed sentiment in Europe in Q4FY23. Prices fell in the month of October and November while showed uptick in the month of December. In the months of October and November, prices were largely guided by the imports from Russia and Middle East for Carbon Black. Replacement tire markets largely remained subdued due to high fuel and electricity charges. Carbon Black market was largely driven by new EV and conventional vehicle sales subsidized by the European governments for transition economies. Mortgage rates continued to fall in the entire quarter hitting lowermost in December as inflation premium declined significantly. While inflationary pressure still remained, consumer movements showed uptick reflected in improvement in demand for carbon black for replacement tire markets. Energy prices dropped significantly while still remained higher than pre-pandemic levels. By the mid of December, speculative destocking of Carbon Black began by the suppliers as major EU zone States to cut down state subsidy for sustainable transition. Demand for new EVs showed bearish trends. By the last week of December, prices recovered amidst speculative stocking up by European suppliers as Houthi attacks in Red sea continued. European sanctions on Russian imports to become affective by July 2024.
Asia Pacific
Prices of Carbon Black in Asia-Pacific showed bearish sentiment in Q4FY23. Prices remained subdued largely owing to oversupply and weak demand sentiments from the Chinese markets. Chinese private consumption remained subdued amidst largely owing to large contributions of private investments in real estate sector which currently in doldrums. Export demand of Carbon Black from China remained subdued due to protectionism and lower export volumes. Destocking of Carbon Black was observed in Chinese, Thai and Malaysian markets largely owing to oversupply. South Korean and Japanese markets remained largely stable with demand for exports of EV picked up in November. High interest rates coupled with high food and energy inflation pulled down domestic demand sentiments in Asia Pacific region. Production and Manufacturing index remained subdued with consecutive contraction observed in newer orders and output due to overstocking of carbon black and derivatives. Indian markets remained resilient in October and November while demand subdued due to cold weather and lower rural demand in December leading to further destocking in APAC markets. Towards the end of December, Houthi attacks on Red Sea vessels triggered rising freight charges and overseas importers of Carbon Black started reducing newer orders as Europe and American markets observed seasonal demand slump amidst cold spell. Thai markets destocked in the regional markets due to lower tourism and petrochemical exports by December last week.
Middle East Asia (MEA)
Carbon Black prices in the MEA region remained stable in Q4 2023. The market witnessed oversupply and weak demand due to EU's limit on imports, leading to a subdued replacement market in Europe. Logistics activities were affected by adverse weather and high water levels, leading to lower capacity utilization. Natural gas and crude prices remained low, cooling off cost pressures. The UAE market saw a decline in tire demand due to seasonality and transportation challenges, leading to a significant inventory buildup and lower demand sentiment. The country's SBR demand also showed a decline, while the downstream rubber and tire industries' demand sentiment remained weak due to affordability issues. The Russian carbon black market faced export restrictions in Europe, leading to oversupply and lower prices. UAE's dependence on Russian carbon black imports also affected the market. The currency remained stable against the US dollar. The trend for Carbon Black in the UAE was bearish, with moderate to high supply and low demand. The quarter ending price of Carbon Black N220 Grade CFR Jebel Ali in the UAE was USD 1122/MT.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, Carbon Black prices in the USA showed fluctuating trends throughout the entire quarter. Prices increased in the first and last months, while a decline was observed in the second month. These fluctuations were primarily driven by shifts in downstream demand, feedstock prices, and seasonal factors. July marked the start of the quarter with an upward trend in Carbon Black prices. Notably, the construction and tire industries played a significant role in driving this surge in demand, resulting in higher prices. August witnessed another price increment in Carbon Black, primarily attributed to the growing demand from the downstream industry. Additionally, the rising feedstock, Naphthenic oil, played a pivotal role in contributing to the overall price increase during this month. In September, prices surged due to several factors. As the winter season approached, there was increased demand from the tire industry. The prices fluctuate from USD 1143 per MT FOB Texas to USD 1190 per MT FOB Texas during the timeframe of July to September.
APAC
In Q3 2023, Carbon Black prices increased in South Korea, China, India, and Japan, while it decreased in Malaysia. This price surge was primarily driven by robust demand from downstream industries, competitive pricing within the Asian region, and the impact of rising crude oil prices on the cost structure of Carbon Black production. These factors converged to establish a dynamic pricing environment that consistently favored higher prices throughout the quarter. In South Korea the prices increased due to high demand from the downstream derivatives. There was also a high demand from the construction and tire industry, which increased the demand and price as well. However, the prices fell in the second month of the quarter while increasing in the first and last month. Rising feedstock Naphthenic oil also contributed to the rising price of carbon black. In September 2023, the prices of natural gas increased due to the coming winter season, and demand from the tire industry continued. As the vehicle sales increase, the demand from the tire industry increases. The prices fluctuate from USD 1325 per MT FOB Seoul to USD 1368 per MT FOB Seoul during the timeframe of July to September.
Europe
In Europe, Carbon Black prices saw an increase in the first month of the third quarter. However, they began a consistent decline in the latter two months of the quarter. The first month saw a surge in demand from the tire industry, which led to increased demand pressure and, subsequently, a rise in prices. In Germany, prices declined primarily due to the weakening euro currency, steady demand from the downstream industry, slowing construction activity, and reduced demand in coatings, adhesives, lubricants, and other industrial markets, a sentiment reiterated by Dow Chemicals. Despite the robust performance of the automotive industry in Europe, the tire industry did not grow at the same pace, largely attributed to steady exports from non-ETRMA (European Tire and Rubber Manufacturers' Association) members throughout the year. Additionally, ample inventories were available in the market, and weak prices of imports from neighboring Russia further influenced the downward trend. The prices declined from USD 1143 per MT FD Hamburg to USD 1190 per MT FD Hamburg during the timeframe of July to September.
MEA
In the backdrop of dropping prices in the Exporting countries, the pricing sentiment of Carbon Black in the UAE market declined consistently throughout the quarter. Russia, a key producer of Carbon Black in the European region, has witnessed a constant decline in the prices as the consumption rates in the European market remained largely stable. This prompted the producers to moderate the prices in favor of the buyers to ease the inventory levels in the domestic market as well as in the ports. Thus, the imports into the Middle East Asian region, specifically in the UAE, remained on a declining trend. Hence, after the conclusion of the third quarter of 2023, Carbon black prices in the UAE market were assessed at USD 1105 per MT on a CFR basis.
For the Quarter Ending June 2023
North America
Following the shadow of the bearish movement of the first quarter, the prices of Carbon Black in the US recovered towards the second half of Q2 in 2023 from mid-May to June. The sales of automobiles witnessed a consistent drop in May, thereby guiding the substantial drop in bulk inquiries. However, the automotive sector had abundant supply throughout the month to meet the demand. Because the availability of the material forced in narrowing the gap between the demand and supply of Carbon Black. Meanwhile, stability in the cost of energy in that region had further ceased the cost of input, which had resulted in a lowering in the prices of carbon black. Nevertheless, the export prices of Carbon Black stabilized after continuously declining for over a month at Texas port. As of June 2023, Carbon Black prices observed improvement on the back of stable cost support and firm demand pressure from the downstream tire and rubber industry. Additionally, feedstock natural gas prices improved as well, which helped in strengthening the cost support. Consequently, arresting the bearish trend of the last few weeks, the US Carbon Black prices were assessed at USD 1960 per metric ton on an FOB basis.
APAC
In the Asia Pacific market, the prices of carbon black in Q2 of 2023 observed an overall downswing. However, the prices remained constant at a slightly upper-value region throughout June in the presence of the limited availability of feedstock coal tar, thereby resulting in increased cost of production for carbon black and, on top of that, improved demand from the downstream industry further provided the cost support to the carbon black prices during the mid-June. However, the overall bearish trend during the entire second quarter is the result of low buying enthusiasm from the end-use tire and rubber industry market in the sight of the underwhelming performance of the automotive industry. Furthermore, the Carbon black prices declined slightly in the last week of June as a result of the weak demand from the downstream along with the fall in the feedstock coal tar prices owing to the improvement in upstream Pet coke availability after the persistent drop in its inventories. Thus, after the conclusion of the second quarter, Cumene prices in China were assessed at USD 1100 per MT on the FOB basis.
Europe
In the European market, the prices of carbon black witnessed a surge in April and the first half of May, which later declined slightly and followed a steady wave in the second half of Q2 from mid-May to June. This slight boost is because the imports from Russian markets have remained costly on Russian shores. The Carbon Black prices seemed promising in the German and Dutch markets as the demand from the downstream tire and rubber industry increased. The automotive industry regained momentum as a result of an increase in the supply of semiconductors. However, in the second half of the quarter, stagnancy in demand from the end-use industry resulted in limited queries and further pulled down the carbon black prices. The domestically traded price of Carbon Black was assessed as declining with a slump of around 3.5% week on week basis as the market participants reported the availability of cheap imports in the surplus from the Asian markets. Thus, after the conclusion of the second quarter, Cumene prices in Germany were assessed at USD per MT FOB basis.
For the Quarter Ending March 2023
North America
Amidst shifting supply and demand dynamics, the Carbon Black market displayed mixed sentiments in the first quarter of 2023. The cost of Carbon Black became stable in February as compared to January before falling once more as the end of the quarter drew near. As soon as the supply of semiconductors began to grow, the automotive sector began to recover, but it was soon negatively impacted by the financial instability brought on by the failure of two major US banks. Because the economy's downturn had a particularly detrimental impact on the automobile industry, less Carbon Black was being used, which finally caused the price to drop. As a result, Carbon Black Hard Grade N220 was evaluated at USD 2268/MT FOB Texas in the USA in March.
APAC
Prices for Carbon Black decreased in the Asia-Pacific region throughout the first quarter of 2023, which was supported by a drop in downstream demand. Even though the Asian market for the downstream automotive and tire industries showed signs of improvement multiple times throughout the quarter, demand for Carbon Black did not significantly increase. There were also a lot of Carbon Black inventories, which caused the price to drop because there wasn't as much demand for the product as there was supply. The supply rate was further increased by the absence of supply chain bottlenecks and crowded ports, which contributed to the decline in Carbon Black prices. Consequently, the assessed price of Carbon Black Hard Grade N220 was USD 1715/MT CFR Tokyo in Japan during March.
Europe
Throughout the first quarter of 2023, Carbon Black prices fell in the European market, which was aided by a decline in downstream demand. The demand for Carbon Black did not significantly rise throughout the quarter, despite many instances throughout which the European market for the downstream tire and automobile industries showed signals of improvement. Additionally, there were a lot of Carbon Black inventories, which led to a decrease in price because of a mismatch between supply and demand. The lack of bottlenecks in the supply chain and busy ports further enhanced the supply rate, which led to a decrease in the price of carbon black. As a result, the assessed price of Carbon Black Hard Grade N220 in Germany during March was USD 1371/MT FD Hamburg.
For the Quarter Ending December 2022
North America
The market value of Carbon Black declined consistently in the North American Market during the fourth quarter of 2022, backed by poor market sentiments and decreased production costs. As the market performance of the downstream tire and automotive industries was not that good in terms of sales and industrial output, the demand for Carbon Black from these industries reduced during the quarter. Furthermore, amidst falling natural gas and crude oil prices, the upstream cost involved in Carbon Black manufacturing decreased, which eventually led to its dropped value in the domestic market. Hence, the assessed price of Carbon Black Hard Grade N220 in the USA was USD 2615/MT FOB Texas in December, which was 23% lesser than the value in September.
APAC
In contrast with the North American pricing trend, the prices of Carbon Black rose significantly throughout quarter 4 of 2022 in the Asia-Pacific region on the back of strong downstream demand. As the downstream tire and automotive industries revived in the Asia-Pacific region during the quarter, so did the offtake of Carbon Black from these two industries. The market was mainly demand-side tilted; hence strong market sentiment dominated the market during the entire quarter. Consequently, In China, the price of Carbon Black Hard Grade N220 assembled at USD 1734/MT Ex-Tianjin in December, which was 16.5% higher than its market value in the month of September.
Europe
Unlike North America and APAC, the European countries witnessed stability in the Carbon Black market during the start of Q4 2022, which later turned into a consistent decline as soon as October ended. Two major factors which drove down the Carbon Black market value in Europe were weak demand and falling energy prices. As the tire and automotive industries were not performing well in the market, the inquiry for Carbon Black from these industries dropped, which eventually resulted in its decreased value. Furthermore, as Europe saved itself from the predicted energy crisis with the help of proper planning and actions, the energy prices fell during the quarter, which caused the lesser price for Carbon Black as well. Hence, In Germany, the price of Carbon Black Hard Grade N220 was Settled at USD 2197/MT FD Hamburg in December, which was 19.6% lower than in September.
For The Quarter Ending September 2022
North America
With production barriers remaining in place and demand driving prices upward, the market for Carbon Black experienced volatility throughout the 3rd quarter of 2022. Additionally, producers were obliged to choose a price increase because of the huge spike in crude prices and the rise in raw material prices. In addition, price hikes for all main grades of Carbon Black were announced by Orion Engineered Carbons and Cabot Corporation. Depending on the grade and packaging, price increases in the range of USD 200 to USD 400 per MT were announced. The price increase was accompanied by growing feedstock costs, operating expenses, investments in environmental protection, and new investments made to maintain a steady supply of the commodity on the market. Hence, the assessed price value of Carbon Black Hard Grade N220 was USD 3395/MT FOB Texas (USA).
APAC
The Carbon Black prices increased consistently in the Asia-Pacific region during the third quarter of 2022, backed by strong downstream demand from tire and automotive industries and escalated raw material prices. In the market under consideration, the price of coal tar as a raw material was skyrocketing with significant cost-side support. Due to most Carbon Black manufacturing companies’ losses and their lack of motivation to begin new productions, there was a shortage of the substance. Although the supply side of the market dominated and increased the price of Carbon Black, demand from the tire industries was weak due to their poor performance in the domestic market. Conclusively, the assessed price value of Carbon Black Hard Grade N220 was USD 2100/MT CFR Tokyo (Japan).
Europe
Due to the high price of imports from South Korea and the USA, the market value of Carbon Black increased consistently in the German market during Q3 2022. Due to the Russia-Ukraine war, Russian Carbon Black supplies ceased in the European nations. As a result, Europe began importing Carbon Black at considerably higher prices from South Korea and the USA, which finally increased its value on the German domestic market. In addition, the supply chains were hindered by congestion, berth delays, and vessel bunching in various German ports during September, which reduced the amount of stock available on the market. Meanwhile, In addition, price increases for all main grades of Carbon Black were announced by Orion Engineered Carbons. Additionally, the rise in energy costs was a factor in the price increase for Carbon Black. Hence, the price value of Carbon Black Hard Grad N220 was USD 2732/MT FD Hamburg (Germany).
For the Quarter Ending June 2022
North America
The USA Also witnessed an increasing trend in the second quarter of 2022, where prices continued their uptrend journey throughout the three months of Q2. Cabot Corporation increased the prices of Carbon black by a significant amount as the company remarked that rising operating costs due to climbing feedstock prices, investments towards carbon neutrality, and other expenses to maintain consistent supply in the region. Cabot Corporation increased the prices by USD 132 per MT in May, and another substantial price jump was announced in June 2022. Carbon black prices have remained firm and are likely to continue on their uptrend in Q3.
APAC
During the second quarter of 2022, Carbon Black prices rose sharply in South Asia owing to high feedstock prices and stable to firm demand in the region. In China, Carbon Black prices rose sharply during the first two months because of rising feedstock coal tar prices. Inventories remain low as the demand from the downstream tire industry. However, towards the end of the quarter, Carbon Black prices shifted the balance and dropped after months of a bullish rally. In India, Carbon Black prices have also shown a similar market trend where prices increased in the first half of the quarter on the back of stable demand and strong feedstock costs, while prices declined towards the second half of the quarter owing to declining demand and stability in feedstock prices.
Europe
Carbon black remained high throughout the quarter due to the stable demand dynamics and rising feedstock prices along with the logistics costs, which were termed as strong due to uncertainty around the European supply chain. Cabot, Orion, and other companies opted for a significant price increase during the second quarter. The price increase has been made inevitable due to rising manufacturing costs, environmental control investments and operating costs, and continued investments to ensure reliable supply. Several European countries, including Germany, the UK, and France, moved ahead from relying overtly on Russia as the geopolitical gulf between Russia and Europe widened since the beginning of the Russia-Ukraine war. Sanctions on Russia galore where imports of several Russian commodities faced a stringent ban from European authorities, including Carbon black.
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
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.
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.
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.
