Analysis of upstream and downstream industrial chain, industrial market pattern and key enterprises of carbon black in China in 2022

Overview

Carbon black also known as carbon black, is formed by hydrocarbon compounds (mainly petroleum derivatives) through incomplete combustion or thermal cracking of approximately spherical colloidal particles of quasi-graphite structure material, exists in the form of aggregates, apparent pure black powder or granular. The particle size, structure and surface activity of the products vary greatly according to the raw materials and production processes. According to the different application fields, carbon black can be mainly divided into rubber carbon black and non-rubber carbon black two categories.
 
Industrial chain analysis

1. Industrial chain

The upstream of carbon black industry chain is raw materials, mainly coal tar, anthracene oil, ethylene tar and other raw oil; The middle reaches are the production and supply links, mainly divided into rubber carbon black and non-rubber carbon black; Downstream mainly used in tire, rubber products, plastics, paint, ink, battery and other industries.

2. Analysis of upstream end

The main raw materials of carbon black production are coal tar, anthracene oil, ethylene tar and other raw oil. Among them, coal tar and anthracene oil are the byproducts of coking, accounting for more than 80% of raw oil, and are the most important raw oil. Ethylene tar is a by-product of petroleum refining to produce ethylene, which accounts for 16.6% of raw oil.

3. Analysis of downstream end

From the perspective of downstream consumption structure of the industry, tire is the largest consumption area of carbon black  in China, accounting for 66.7% in 2021. Followed by other rubber products and plastics, accounting for 22.2% and 6.3%, respectively.

Current situation of the industry
 
1. Output

In recent years, Chinese rubber and automobile industries develop well, which promotes the rapid development of black industry and the overall industry output is rising. In 2020, due to the impact of COVID-19, such factors as lack of construction and shortage of raw materials, production decreased significantly. As the outbreak was effectively contained, production began to recover. According to the data, the output of black carbon in 2021 will be 5.2 million tons, a year-on-year increase of 7.9%.
 
From the perspective of production process distribution, new production capacity of dry granulation was banned after 2004 and traditional production capacity was gradually phased out. Currently, wet granulation has become the mainstream granulation process. In 2020, the yield of wet granulation carbon black accounted for 99%, and that of dry granulation carbon black accounted for 1%.

2. Production capacity

Thanks to the continuous expansion of the industrial scale, China’s carbon black production capacity has also increased in recent years. Specifically, in 2021, China’s carbon black production capacity will reach 8.2 million tons per year, up 3.1% year on year.

3.Price situation

From the situation of carbon price, recent years, with the increase of upstream raw material price, the price of our carbon black has been rising. Specifically, the average price of carbon black in China increased from 7,348 yuan per ton in January 2021 to 9,998 yuan per ton in August 2022.

4. Import and export trade

From the perspective of carbon black import and export trade, carbon black is mainly exported, and the export volume is much larger than the import volume. Specifically, the import volume of carbon black in 2021 is 102,200 tons, with an import amount of 317 million dollars. The amount of exports amounted to 721,700 tons and 936 million dollars.
 

5. Export distribution

In terms of export distribution, Thailand, Vietnam and Indonesia will account for the top three regions in terms of export amount of carbon black in 2021, accounting for 32.69%, 21.9% and 15.05% respectively.

Import and export trade

From the perspective of carbon black import and export trade, carbon black is mainly exported, and the export volume is much larger than the import volume. Specifically, the import volume of carbon black in 2021 is 102,200 tons, with an import amount of 317 million dollars. The amount of exports amounted to 721,700 tons and 936 million dollars.
 
1.Export distribution

In terms of export distribution, Thailand, Vietnam and Indonesia will account for the top three regions in terms of export amount of carbon black in 2021, accounting for 32.69%, 21.9% and 15.05% respectively.

2. Key enterprises

Jiangxi Black Cat Carbon Co., Ltd. was established in 2001. It is the first company controlled by state-owned assets to market a single carbon product in our country. At present, the production and sales volume of carbon black, the company’s main product, has been ranked first in China’s carbon black industry for 19 consecutive years and ranked top 4 in the world. According to the data, in 2021, the revenue of the company’s carbon black business reached 6.836 billion yuan, an increase of 47.78%, and the gross profit margin was 14%.

Development trend

At present, the carbon black industry has shifted from the stage of high-speed growth to the stage of high-quality development. With the increasing constraints of resources and environment on the industry, the development of the industry is full of complexity and uncertainty, and the low-end market is highly competitive and seriously homogenized, so the industry is facing more challenges.
 
In recent years, the state has issued a series of relevant policies and regulations, such as Catalogue for the Guidance of Industrial Structure Adjustment and Catalogue for the Elimination of Backward Production Capacity, Processes and Products, which point out the direction for the development of the carbon black industry. Energy conservation and emission reduction, comprehensive utilization of resources, development of circular economy, efficiency of scale and development of green products have become the key points for the future development of the industry.
 
For enterprises with advanced technology and comprehensive utilization of resources, such as extending the industrial chain and high value-added utilization of coke oven gas, the encouragement and support of national policies provide favorable opportunities for their rapid development. Moreover, the carbon black industry belongs to the high energy consumption industry specified by the National Development and Reform Commission, and the country will strictly restrict the development of the high energy consumption industry in the future.
 
China is the main producer of carbon black in the world, accounting for nearly 50% of the global total production capacity. Under the supply-side reform driven by the dual control regulation of energy consumption, it is expected that the domestic small production capacity may face the clearing pressure in the future, and the market share of large-scale enterprises is expected to rise steadily.