Asia-Pacific Carbon Black Market Report: Ongoing Oversupply Pressures Prices Downward

　　Asia-Pacific Carbon Black Market Report

　　1) First Quarter of 2024: Decreased Demand and Oversupply Pressure Prices Downward

　　In the first quarter of 2024, the carbon black pricing sentiment in the Asia-Pacific region showed mixed signals. Early in the quarter, carbon black prices dropped due to the Lunar New Year, but this decline was significantly offset by a surge in replenishment in the latter half of the quarter. Demand initially fell by 8% to 10%, but the price rebound in the second half largely mitigated the impact of weak demand.

　　Price changes in the first quarter indicated a 6% decline compared to the previous quarter, with prices dropping another 10% in the latter half of the quarter. These trends illustrate a sustained downward pressure on carbon black prices throughout the quarter.

　　By the end of the first quarter, the CFR price for hard carbon black N220 in Tokyo was $1,460 per ton, reflecting the overall negative market sentiment and continued price declines. Overall, the pricing environment for carbon black in the Asia-Pacific region in the first quarter of 2024 was negative, with decreased demand and oversupply contributing to downward price pressure.

　　2) Second Quarter of 2024: Oversupply Continues, Prices Remain Under Pressure

　　In the second quarter of 2024, the Asia-Pacific carbon black market continued to experience downward price trends, driven by several key factors. Disruptions in the supply chain, particularly inventory adjustments by rubber producers prioritizing exports to the U.S., significantly affected market pricing. Additional tariffs imposed by the U.S. on Chinese rubber products led to oversupply and shipping delays, further pressuring carbon black prices. Furthermore, declining crude oil and natural gas prices eased raw material cost pressures, contributing to bearish sentiment.

　　The carbon black market was also impacted by high inventory levels and weak tire production demand, reflecting a broader slump in the automotive sector. Japan, in particular, saw marked price fluctuations, becoming a focal point of this trend.

　　The overall market situation in Japan for the second quarter was not optimistic, with prices falling 6% compared to the same period last year. Although prices remained relatively stable compared to the first quarter of 2024, the unfavorable price trend persisted. Within the quarter, prices dropped by 3% from the first half to the second half, underscoring ongoing downward pressure.

　　By the end of the second quarter, the latest CFR price for hard carbon black N220 in Tokyo was $1,360 per ton. The continued price decline highlighted the challenging pricing environment, reflecting broader challenges facing the carbon black market in Japan and the Asia-Pacific region in 2024.