Continuing the declining aggregate indicators on economy in carbon black industry in 2019, from January to February this year, profits in China’s carbon black industry continued falling sharply.

According to the statistics from the China Rubber Industry Association Carbon Black Branch, from January to February, 21 of 33 major member enterprises lost money, and the scale of losses increased from 21.21% at the end of last year to 64% with the amount of loss reaching 100.13 Million Yuan.

1. Output Continuing Declining

The total carbon black output of major member enterprises from January to February was 640,000 tons, with a year-on-year (the same below) decrease of 2.58%.

Fig. 1: Outputs and Year-on-year Changes of Carbon Black from January to February 2020

Fig. 2: Outputs and Year-on-year Changes of Carbon Black in 2019

In 2019, the total carbon black output of major member enterprises was 4.43 million tons, with a decrease of 1.93%; the sales volume of carbon black was 4.42 million tons, basically the same as the previous year. Among them, the output of wet granulated carbon black was 4.39 million tons, with a decrease of 1.57%; and the output of dry granulated carbon black was 36,000 tons.

Note: The data are all statistics from major member enterprises of China Rubber Industry Association Carbon Black Branch, the same below.

2. Decreasing Amplitude in Main Business Income Expanding

According to statistics from the Carbon Black Branch, from January to February, the main business income of carbon black industry was 2.9 Billion Yuan, with a decrease of 30%.

In 2019, the main business income was 28.3 Billion Yuan, with a decrease of 12.48%. The sales price of carbon black has dropped somewhat due to various factors such as market factors, increased production capacity, raw material prices, etc.

Fig. 3: Sales Revenues and Year-on-year Changes of Carbon Black Industry from January to February 2020

Fig. 4: Sales Revenues and Year-on-year Changes of Carbon Black Industry in 2019

3. Scale of Losses of Industry Continuing Expanding

From January to February, due to the multiple effects of raw materials and the market, more than half of the major member enterprises counted by the Branch lost money, and the scale of losses further expanded to 64%.

A profit of -95 Million Yuan was achieved in 2019; and seven enterprises suffered losses, with a loss of 236.94 Million Yuan.

Fig. 5: Total Profits and Year-on-year Changes of Carbon Black Industry from January to February 2020

Fig. 6: Total Profits and Year-on-year Changes of Carbon Black Industry in 2019

4. Export Decreasing, and Import Increasing

According to statistics from China Customs, from January to February, China’s carbon black export volume was 120,000 tons, with a decrease of 16%; the export value was USD 100 Million, with a decrease of 31%; carbon black import volume was 14,000 tons, with an increase of 32%; and import value was USD 30 Million, the same as the same period last year.

According to statistics from China Rubber Industry Association Carbon Black Branch, the export of carbon black in 2019 was 590,000 tons, with a decrease of 12.11%; and the export value was 3.8 Billion Yuan, with a decrease of 20.91%.