Jingdezhen, China – Jiangxi Black Cat, China’s largest carbon black maker, posted 57 million yuan (€7.6 million) net loss in H1 2016, compared with €5.4 million net profit in H1 2015.
Revenue over the same period declined by 22 percent to €259 million. With 1.06 million tonnes carbon black annual capacity, the company produced 509,000 tonnes in H1 2016 and sold 505,000 tonnes.
“In the first quarter, due to factors such as accelerated falling of global oil price, tire makers’ low capacity utilization and de-stocking activities, carbon black price dropped to a decade-low, putting the whole sector in the red,” said Black Cat’s H1 report.
In the second quarter, with oil price bouncing back and coal tar price increasing, and on account of government policies such as tightened environmental regulation, “smaller carbon black makers’ production shrank while large scale companies took over a bigger market share,” said the report.
China’s tire makers’ production started regaining momentum since April, leading to rise in carbon black demand, the report added, but overcapacity is still dragging down the bargaining power.