Carbon Black Market Trends: Contrasting Fortunes in Europe and North America Amidst Global Dynamics

　　According to "Chemical Analyst" reports, although European carbon black prices rose slightly in November 2023, the European market will continue to remain bearish from the end of 2023 to the beginning of this year due to weak demand for the eighth consecutive month. In contrast, the North American carbon black market remained strong and stable amid subdued global sentiment, despite negative cost pressures during the specific time period. Compared with prices during the epidemic, carbon black prices are still relatively high.

　　In the European market, carbon black trades at about $850 per ton. Market quotations show that prices fell by 2% within a week at the end of December, while the cumulative decline throughout December was approximately 5%, and has fallen by 40% so far. Europe usually relies on imported carbon black, but with the ban on Russian imports of carbon black and elastomers taking full effect, Europe will add new production capacity and plans to start production from mid-2024. The European carbon black market remained stable in November, with incremental demand offset by oversupply, amid heavy exports from Russia via "shadow tankers" and other means. Further dynamic analysis of the European carbon black market shows that the downstream tire market remains sluggish, especially the replacement tire market. Market participants revealed that bulk carbon black procurement activities in Northern Europe, especially the ports of Rotterdam, Hamburg and Antwerp, were forced to be postponed due to suppression of river shipping and supply chain disruptions, especially purchases from the United Arab Emirates.

　　Despite the decline in global carbon black prices, sales prices in the North American market have remained strong due to strong market purchasing power and a significant cooling of inflation, which has boosted consumer demand and business confidence. The Federal Reserve announced three interest rate cuts in fiscal 2024 as core inflation cooled significantly in economic activity, mainly due to the continued destocking of raw chemicals and the implementation of the Inflation Reduction Act of 2022. Demand sentiment in the U.S. battery carbon black market improved in December, while the tire market is currently weakening, offsetting gains in October. In the U.S. market, carbon black trading prices have returned to pre-COVID-19 levels, but market trading volumes are still below pre-COVID-19 levels.