Recently, domestic listed Carbon Black companies have successively released their first quarter financial reports. Benefiting from the continuous rise in domestic carbon black prices, domestic carbon black enterprises saw a rebound in profits and a significant turnaround in losses in the first quarter.
Black Cat Group's revenue in the first quarter of 2024 was approximately 2.385 billion yuan, an increase of 8.1% year-on-year; The net profit attributable to the shareholders of the listed company is approximately 3.75 million yuan; The revenue for the same period last year was approximately 2.206 billion yuan; The net profit loss attributable to the shareholders of the listed company is approximately 104 million yuan.
Yongdong Group achieved a revenue of 960 million yuan in the first quarter, a year-on-year decrease of 15.69%; The net profit attributable to the shareholders of the listed company was 31.1121 million yuan, turning losses into profits year-on-year.
Longxing Chemical achieved a revenue of 1.001 billion yuan in the first quarter, a year-on-year decrease of 10.62%; Realized a net profit of 27.1951 million yuan, a year-on-year increase of 113.52%.
Jinneng Technology achieved a total operating revenue of 3.387 billion yuan in the first quarter, a year-on-year decrease of 1.61%, with a net profit attributable to the parent company of 24.3126 million yuan and a year-on-year decrease of 82.48% in losses.
Global carbon black prices continue to rise
Recently, Procurement Resources in the United States analyzed the global carbon black market prices, and found that carbon black prices in major regions around the world continue to rise!
Asian region: Carbon black prices in various Asian countries have experienced fluctuations in the first three months of 2024. In China and India, the tire and automotive industries have grown significantly, so carbon black producers expect strong demand for carbon black, thereby increasing production. However, the purchasing rate of this product remains stagnant, causing an imbalance between supply and demand in the market. Given the increasing gap between supply and demand, carbon black inventories have limited the upward trend of its price. However, as the quarter ended, the overall market situation began to improve, giving traders hope.
Europe: In the early first quarter, although the European carbon black market showed some upward momentum at the end of the fourth quarter of 2023, the carbon black market still faced a series of challenges. In the European region, due to the imbalance of macroeconomic fundamentals, the carbon black market has shown a profound demand crisis. In the first quarter of 2024, unexpected increases in crude oil prices, escalating sanctions on Russian imported products, and attacks by Hussain militants on Asian transportation routes have raised concerns among carbon black producers and traders. In addition, rising interest rates and bullish energy prices have also suppressed the terminal consumption of carbon black derivative products. The EU's environmental regulations and recycling tasks have put tire manufacturers at a disadvantage, while global shipping disruptions and container shortages have pushed up transportation costs. Due to the increase in operating costs and shipping costs, carbon black prices in the European market remained in a loss making state throughout the first quarter.
North America: In North America, the carbon black market is typically influenced by changes in demand from downstream industries such as automobiles, plastics, coatings, and printing inks. Among these industries, only the automotive industry has shown positive growth, while other industries find it difficult to sustain under severe market conditions. Due to sluggish demand, carbon black inventories have significantly increased, prompting traders to stimulate destocking activities by offering huge discounts on bulk purchases. The raw material oil industry has only provided limited support to the market, and ultimately, the price trend of carbon black remains at the low end of the entire price spectrum.
