Core Viewpoint - The carbon black market is experiencing a slight rebound due to rising raw material prices and a decline in industry operating rates, with expectations of price fluctuations in the near term [1][2]. Group 1: Market Dynamics - As of December 4, the mainstream price for N330 carbon black in Shandong, East China, is 5,900 yuan per ton, an increase of 300 yuan since November 3 [1]. - The high-temperature coal tar market has seen multiple rounds of price increases since mid-November, directly raising production costs for carbon black [2]. - The price of high-temperature coal tar, which constitutes 60%-70% of carbon black production costs, has increased, exerting significant cost pressure on the carbon black industry [2]. Group 2: Supply and Demand - The carbon black market is expected to maintain a state of ample supply in 2025, with high inventory levels from the beginning of the year leading to a supply surplus [3]. - Despite a slight decrease in production due to reduced operations among small and medium-sized enterprises, carbon black output remains at a high level compared to the past five years [3]. - The demand for carbon black is showing a mixed trend, with an increase in demand for all-steel tires but a decline in demand for semi-steel tires and related products, limiting the overall consumption growth [3]. Group 3: Industry Performance - The operating rate of carbon black enterprises has slightly increased due to supply guarantee policies, reaching 70.22% as of December 4, up 0.55 percentage points from the previous week [4]. - The profitability of carbon black enterprises is under continuous pressure due to high raw material prices and weak product price increases, with theoretical profits for N330 carbon black in Shandong at -696 yuan as of December 4 [5]. - Despite the intention to raise carbon black prices, strong resistance from downstream enterprises against high quotes is limiting the upward movement of prices, leading to an expanded loss margin in the industry [5].

Market Overview - The carbon black market is closely linked to global economic conditions, industry demand, and supply status, with increasing demand driven by the growth of industrial production, particularly in the rubber and plastics sectors [3][4] - Economic upturns boost demand for carbon black, while downturns lead to oversupply and reduced demand [4] Industry Demand - The rubber and plastics industries are key indicators of carbon black market demand, with emerging sectors like electric vehicles and electronics contributing to new demand [5] - Increased consumer expectations for product quality and safety are driving higher requirements for carbon black in these industries [5] Supply Conditions - The production of carbon black is complex and influenced by raw material and energy costs, as well as environmental regulations [6] - Changes in policies, weather conditions, and competition among suppliers can significantly impact supply and, consequently, market prices [6] Price Trends - Raw material costs, particularly for oil and natural gas, are critical to carbon black pricing, with price fluctuations affecting production costs and sales prices [7] - The balance of supply and demand is a key determinant of long-term price trends, with increasing industrial development expected to sustain upward pressure on prices [8] - Market competition and government policies also play a role in influencing carbon black prices [9]