China carbon black business is in process of transformation
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.
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News story from CRIA (Chinese language)
Above story auto-translated (from Chinese language)
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