ERJ staff report (DS)
Beijing - China's carbon black industry suffers from low margins, low technology and fierce price competition. The industry also faces increasing costs due to raw materials and higher labour costs.
Despite this, a review of Chna's carbon black industry in 2011 reveals a picture of rapid capacity expansion. A report on the CRIA website suggests China now has 30 percent of global capacity for carbon black. The top producers in China include Black Cat; Hebei Lone Star; Shandong Huadong Rubber Materials Company; Suzhou Baohua.
In 2011 exports reached 488,000 tonnes, worth some $600 million, an increase of 116 percent in volume terms and 152 percent in value.
The export unit price from $ 1.16 in January 2011 / kg rose to $ 1.29 / kg in June 2011, followed by the price quickly dropped to just $ 1.09 / kg in August 2012.
The report says some foreign companies have cut output due to harsh price competition. Domestic suppliers have the advantage in costs.
This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.
News story from CRIA (Chinese language)
Above story auto-translated (from Chinese language)