Carbon Black Price Trend and Forecast

Carbon Black Regional Price Overview

Get the latest insights on price movement and trend analysis of Carbon Black in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Carbon Black Price Trend for the Q3 of 2024

Asia

The carbon black market in the Asian market displayed a complex pricing pattern throughout Q3’24, influenced by both crude oil trends and regional market dynamics. The quarter began with price stability due to ample supply and lower feedstock costs from declining crude oil prices.
 

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Mid-August brought temporary price support across the region, driven by Middle East tensions affecting crude oil markets. However, the market fundamentals remained pressured by sluggish tire and rubber manufacturer demand, while autumn festivities in certain regions provided some late-quarter support to prices.

Europe

The European market witnessed a notable decline throughout the quarter, primarily influenced by lower import prices from India and Thailand, alongside falling crude oil prices. While geopolitical tensions and Middle East escalations provided brief support in August, the overall trend remained bearish. The market faced additional pressure from slowing automotive demand and reduced car sales, though EU sanctions on Russia created some supply-side price support. The regional dynamics were further complicated by longer lead times for APAC imports.

North America

The North American market experienced consistent price deterioration throughout Q3, aligned with falling crude oil prices and regional market specifics. The quarter started with declining prices due to lower automotive sector demand and high inventory levels. The market saw brief price support in mid-quarter from higher freight and import costs, but the overall trend remained negative, particularly affected by increasing US commercial crude stocks and weakening demand.

Analyst Insight

According to Procurement Resource, the market for Carbon Black market will demonstrate strong correlation with crude oil trends while maintaining its own regional specificities in the coming months.
 

Carbon Black Price Trend for the Q2 of 2024

Asia

The price trajectory of carbon black displayed a normalizing pattern throughout the second quarter of 2024, following a robust performance in the previous quarter. Despite strong growth indicators from the tire and automotive sectors in China and India, the market experienced price stabilization due to sluggish purchasing activities.

The supply-demand equilibrium showed signs of imbalance, particularly impacted by the election period in India. The slower recovery in international trade further contributed to the tempering of prices in the Asian market, offsetting the positive momentum from industrial growth.

Europe

The European market exhibited a complex pricing pattern during the said quarter. Initially maintaining positive momentum from the first quarter, prices later faced downward pressure due to significant market disruptions. The implementation of enhanced sanctions against Russian imports created substantial supply chain challenges. The market dynamics turned increasingly volatile as the region, historically dependent on Russian, Ukrainian, and Belarusian supply, faced potential shortages. Major industry players began exploring alternative supply sources, indicating a shift in traditional procurement patterns and contributing to market uncertainty.

North America

The North American market demonstrated a declining trend throughout the quarter, diverging from the generally positive market sentiment. The region experienced downward price movement primarily attributed to elevated inventory levels and subdued demand patterns. The market witnessed efforts to balance supply positions despite the overall positive industrial outlook, leading to price adjustments across different grades of carbon black.

Analyst Insight

According to Procurement Resource, the price of Carbon Black is likely to exhibit the current volatility in the global markets. The automotive and tire industries remain key demand drivers, which will pay a critical role in deciding the future trajectories.
 

Carbon Black Price Trend for the Q1 of 2024

Stay updated with the latest Carbon Black prices, historical data, and tailored regional analysis
 

Asia

In Asian countries, the prices of carbon black experienced volatility during the first three months of 2024. In China and India, the tire and automotive sectors reported significant growth, due to which the manufacturers anticipated robust growth in demand for carbon black, too, and thus raised their operational outputs.

However, the procurement rates of the commodity remained stagnant, creating an imbalance between the supply and demand sectors of the market. In view of the growing disparity between supply and demand, the inventories of carbon black stockpiles restrict the upward movement of its price trend. However, as the quarter ended, the market's overall dynamics started to improve, raising the hopes of the trading community.

Europe

In the early days of the first quarter, the carbon black market faced a continuous string of challenges despite some gains in Europe at the end of the last quarter of 2023. In Europe, the carbon black market indicated a deep demand crisis amid an uneven trend in the fundamentals of the region. The unexpected upturn in the cost of crude oil, the increasing number of sanctions on Russian imports, and Houthi attacks on Asian shipments raised the concerns of the producers and traders of carbon black during Q1 of 2024.

Additionally, rising interest rates and bullish energy prices dampened end-use consumption of carbon black-derived products, too. The EU regulations and recycling mandates have strained producers, while shipping disruptions and container shortages globally drove the cost of transportation. Even with the rise in operational and freight charges, the prices of carbon black remained under the red zone throughout the first quarter.

North America

In North America, the carbon black market was typically driven by the demand scenario from the downstream industries such as automotive, plastics, coatings, and printing inks. Among these sectors, only the automotive sector showed a positive growth rate, while the other industries struggled to sustain amid challenging market conditions.

As a result of this subdued demand, the stockpiles of carbon black rose significantly, prompting the traders to adopt destocking activities by offering huge discounts on bulk purchases. The feedstock sector also extended only limited support to the market, and eventually, the price trend of carbon black remained on the lower end of the pricing spectra.

Analyst Insight

According to Procurement Resource, the price trend of Carbon Black is expected to struggle with the short term outlook of the downstream industries and fluctuating cost of raw materials.
 

Carbon Black Price Trend for the October - December of 2023

Asia

The Asian carbon black market experienced variations in price trend during the fourth quarter of the year 2023. Prices were observed to be inclining in the first half of the quarter. However, the latter half exhibited borderline retardation in the carbon black price trend. Since the production of carbon black requires the combustion of long-chain hydrocarbons, which are usually sourced from feedstocks like natural gas and gas oil, the availability and the prices of these materials also influence carbon black prices. Other than this, the market demands from the ink, pigment, and automobile industries also drive the carbon black market prices.

The market sentiments were largely positive at the beginning of the quarter in October as the demand curve was still inclining, especially from the automobile industry that uses carbon black as a reinforcing agent. However, during the latter part, the gap between the supply and demand outlooks rose, and the oversupplied inventories started dominating the carbon black price trend. Overall, mixed market sentiments were observed.

Europe

The European Carbon Black market trend followed the Asian market trend, during the said period of Q4’23. However, the overall market performance for carbon black was largely positive in the European region during the discussed span. The Netherlands’ carbon black market witnessed a swift incline of about 2% as the monthly average prices shifted from around 1050 USD/MT (FOB, N550) in October’23 to about 1080 USD/MT in December’23.

North America

The North American market, too, saw an upsurge in carbon black prices during the fourth quarter. This incline could be easily gauged as the associated companies significantly raised product prices during this time. Like, the American company, Cabot announced a rise of at approx. 9% in the prices of its carbon black associated products.

Analyst Insight

According to Procurement Resource, with rising demands, the Carbon Black prices are projected to upsurge even more in the coming months. A positive performance is anticipated in the carbon black price graph.
 

Carbon Black Price Trend for the July - September of 2023

Asia

The third quarter of the year 2023 turned out to be very positive for the carbon black market index. The regional carbon black prices consistently climbed up during the said period in Asia. Both Indian and Chinese markets expressed positive price dynamics. This splendid performance by carbon black reflected the surge in demand for one of the most sought-after reinforcing agents.

Automobiles, machinery, and other manufacturing industries registered higher demands for carbon black to enhance the physical properties of their materials. Offtakes from paints, adhesives, ink, color, and other pigment-related industries were moderate. Overall, positive market sentiments were observed for carbon black in the Asian markets.

Europe

With some temporary and occasional reverse fluctuations, the carbon black market outlook in the European region was positive in general. Since the inflationary pressures started easing, the end consumer purchasing power has gradually revived, and thus, a large amount of sales queries were registered from the manufacturing sectors during the said period. With an approximate quarterly rise of around 12%, the monthly average prices for carbon black went from about 905 USD/MT (FOB, Netherlands) in July’23 to about 1015 USD/MT (FOB, Netherlands) in September’23.

North America

Following the demand fluctuations, the carbon black prices in the American market mostly wavered high. After starting positively at the beginning, the demands subsided in August; however, soon the market demands again picked up, and the price graph again started rising by the end of the 3rd quarter. The gloomy economic outlook of the region had buyers become a little hesitant with their purchases. Overall, the general market sentiment was still positive.

Analyst Insight

According to Procurement Resource, though the price forecasts suggest a positive market behavior for Carbon Black going forward, occasional fluctuations are anticipated as per consumer demands.
 

Carbon Black Price Trend for the First Half of 2023

Asia

The carbon black market witnessed bearish sentiments for most of the first half of 2023. The major reason was slow, steady demands and decreased upstream costs. The inventory stocks were high and were easily able to cater to the existing limited demands, so the prices swung low for most of the said period.

It was only in the latter half of the second quarter that some reverse fluctuations were observed as the inventories started depleting and the demands from downstream sectors started to grow, causing the carbon black prices to move upwards.

Europe

The price trend for carbon black observed fluctuating patterns throughout the first two quarters of 2023. In Q1, the prices were low as stocks were high and demands were steady. But the prices started picking up during the quarter shift owing to a rise in downstream demands and a decline in inventory supplies. The carbon black grade N550 price averaged around 995 USD/MT (FOB, Netherlands) in June’23.

North America

Suppliers in the North American market suffered from low inquiries for most of the period. The market had an almost stable start at the beginning of Q1, but the downstream demands declined sharply from mid-Q1 as the interest rates escalated after failing of two major banks, altering the purchasing sentiment for automobiles. Prices decreased and wavered on the lower end for most of the discussed period; it was only in later Q2 that the market showed signs of recovery, and the carbon black prices started normalizing again.

Analyst insight

According to Procurement Resource, the price trend for carbon Black prices are expected to continue fluctuating in a similar manner given the market volatilities in demand and supply dynamics.
 

Carbon Black Price Trend for the Q4 of 2022

Asia

Q4 witnessed an almost complete revival of downstream demand in the Asia-Pacific region. As the government-mandated covid restrictions were uplifted in China, the operating rates grew substantially. In the wake of this new-found supply, the downstream demand grew equally, thereby, maintaining the market equilibrium. Hence, the prices of carbon black kept on the higher side of the scale during the last quarter of 2022.

Europe

The price trend for carbon black declined throughout the European region in the fourth quarter. Since Russia was the major exporter of carbon black to Europe, the Western sanctions against Russian exports hampered the market supply. Asian imports were called in, but the supply chain disturbances and freight mismanagement complicated the situation which eventually hampered the downstream demand. The dwindling demand aided the fall in the prices of carbon black, thus disturbing the pricing fundamentals.

North America

After the initial uproar in Q3, the production costs settled in the American region. The demand subsided amid the stabilizing feedstock supply and prices, thereby preserving the market equilibrium. The prices inclined but within reasonable limits maintaining a healthy outlook in the market.

Analyst insight

According to Procurement Resource, the carbon black markets are expected to stabilize further. As the international situation settles, the interplay between supply and demand will likely dictate the price trend for carbon black provided no unprecedented event occurs.
 

Carbon Black Price Trend For the Q1, Q2 and Q3 of 2022

Asia

The price trend for carbon black had a sluggish start during the first quarter. There was a healthy equilibrium between supply and demand, hence the prices remained firm. However, the prices inclined towards the end of Q1 as the cost pressure from feedstock increased averaging 1520 USD/MT FOB.

The carbon black prices continuously increased as the second quarter started due to raised feedstock coal tar prices along with expensive logistics and stable demand from the tire industry. The prices declined towards the end of June averaging 10,100 RMB/MT as the market sentiment weakened given such inflated prices.

The market demand rebounded during Q3 especially from the automotive sector causing the prices to incline again. With the lack of new products from the manufacturers, a mismatch was created in the market supply and demand further raising the prices. The carbon black prices averaged 11,100 RMB/MT towards the end of September 2022.

Europe

Carbon black prices kept firm during the first quarter averaging 1710 USD/MT owing to stable market dynamics. However, the prices inclined drastically in Q2 owing to the economic downturn unleashed by the Russia-Ukraine conflict.

The raised feedstock prices among rising demand from the downstream sector caused the manufacturers to raise quotations to support their profits. With the western sanctions against Russian exports, Europe turned to importing carbon black from Asian nations at much higher prices. At the end of Q3, the price of carbon black Hard Grade N220 averaged 2732 USD/MT.

North America

During the first quarter, the price trend for carbon black was on the lower end of the scale owing to stable demand and healthy upstream cost pressure. However, the changing geopolitical climate heavily impacted the pricing pattern in the US domestic market.

With high feedstock prices, expensive logistics, labour shortages and robust demand, the prices inclined drastically in the second quarter. The same pricing patterns continued in Q3 owing to solid demand from the automotive and tire industries. The carbon black prices averaged 3395 USD/MT FOB Texas (Hard Grade N220) towards the end of Q3.

Procurement Resource provides latest prices of Carbon Black. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.