The hottest overcapacity forces the carbon black i

2022-10-18
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Overcapacity forced the carbon black industry to adjust its structure in depth

the scale of two listed enterprises, Jiangxi black cat carbon black Co., Ltd. and Longxing Chemical Co., Ltd., ranked first and second in China, but the profit data in 2015 was quite ugly. Some directors, supervisors and senior staff of Longxing Chemical resigned and introduced "professional managers" to deal with the current complex situation of the industry, which caused a shock in the carbon black industry

with the rapid development of China's tire industry, carbon black enterprises have expanded their production capacity. While the industrial concentration has increased, the overall production capacity of the industry has begun to exceed the demand. At the same time, some international carbon black enterprises have also increased their investment in China, making the competition in the high-end carbon black market more intense

according to the statistics of carbon black branch of China Rubber Industry Association, the national carbon black production capacity reached 6.77 million tons in 2015, with an increase (year-on-year, the same below) of 2.81%, while the output decreased by 100000 tons compared with 2014, only 5million tons, with an increase rate of more than 10 percentage points; The capacity utilization rate also decreased by 4.2 percentage points compared with 2014, only 73.8%

China's carbon black industry mainly relies on coal tar series resources (CTO), while the raw oil of the world's major carbon black enterprises comes from oil resources (FBO). The export success of enterprises mainly depends on the oil price difference (CTO and FBO price difference) at home and abroad. Since 2014, the international crude oil price has repeatedly hit new lows, and the domestic coal tar price has been higher than the clarified oil price in the United States, resulting in the narrowing or even upside down of the price difference between domestic and foreign carbon black products, and the price comparison advantage of domestic carbon black is increasingly weakened

in addition, the decline in exports has also intensified the competition in the domestic market. According to the data of the General Administration of customs, in 2015, China's carbon black export volume was 733500 tons, a decrease of 12.86%, and the export amount decreased by 31.88%

the decline of products is higher than that of raw materials, driving down profits

carbon black prices hit record lows in 2015, and the market entered a severe winter. The profit margin of the industry has shrunk significantly, and the enterprise is facing a loss situation, and is suffering from the most severe survival crisis in history

according to the data of carbon black branch of China Rubber Industry Association, in 2013, the profit margin of industry sales revenue was only 0.16%, the lowest level in history; In 2014, the profit margin of sales revenue increased slightly to 1.12%; In 2015, the carbon black industry suffered losses, and the profit margin of sales revenue was -0.31%

according to the annual report data of major enterprises in 2015, the main business income of black cat carbon black decreased by 22.59%, and the net profit decreased by 82.47%, only about 18% of the previous year; The operating revenue of Longxing Chemical fell by 28.76%, and the net profit turned from profit to loss, down nearly 6 times; The operating revenue of Shanxi Yongdong Chemical Co., Ltd. increased slightly by 2%, and the net profit decreased by 11.88%; The operating income of Shandong Lianke new materials Co., Ltd. decreased by 9.38%, and the net profit decreased by 55.19%

the price of carbon black is closely related to the price of main raw materials. "A year ago, the price of coal tar was about 1800 yuan/ton, and last year, the lowest price per ton was 134 yuan. In the past oneortwo months, the price of coal tar has risen rapidly, from 1560 yuan to about 2000 yuan/ton, with a rebound trend." The chief engineer of a Shandong carbon black enterprise provided a set of figures

according to the data of Shandong Lianke company, the purchase price of raw coal tar and carbon black oil was about 1680 yuan/ton in June last year, and 1400 yuan/ton in December

according to the calculation of Longxing Chemical, the average purchase price of the company's main raw oil (tar and anthracene oil) fell by 15.74% in 2015. Although the unit cost of carbon black fell by 23.20% that year, the average sales price of products fell by 32.71% in the same period, which was significantly higher than the decline of average cost. In order to avoid greater losses from loss making operations, Longxing Chemical cancelled low price orders in India and Southeast Asia on the one hand; On the other hand, the main attention of the main plant and Jiaozuo Longxing production plant was to shut down the main motor source production line and the unit for a wide range of maintenance

the price of carbon black is also affected by many factors, such as the operating rate of downstream tire enterprises and the demand of tire export market. It is understood that about 2/3 of the output of carbon black for rubber is used to produce tires, so carbon black manufacturers are highly dependent on the tire industry. In 2015, the operating rate of tire enterprises was insufficient, the pace of eliminating backward production capacity was accelerated, and industry fluctuations had a great impact on the demand for carbon black. In particular, the increase of "double anti" cases is not conducive to the indirect export of carbon black products

due to overcapacity in the carbon black industry, some enterprises want to communicate with tire customers to solve the imbalance between raw material costs and product pricing, which has become empty talk and lost the initiative of price adjustment

the decline of raw oil price cannot cover the decline of product sales price, and the operating rate of the downstream tire industry is insufficient, resulting in a sharp decline in the sales price and profit of the whole carbon black industry. Based on this, black cat carbon black company judged that the carbon black industry has formed a buyer's market pattern and is currently in the transition stage from the late stage of the long-term to the early stage of the mature period

facing the dual test of de capacity and structural adjustment

entering the second quarter of 2016, the prices of main raw materials showed signs of recovery. Although the prices of carbon black products stabilized, the situation of overcapacity has not been significantly improved. The fierce competition and low profit status of carbon black products for rubber will become the new normal for a long time in the future

"it is estimated that the economic growth in 2016 will be sluggish, with carbon black output of 4.9 million tons, down 2% from 5 million tons in 2015, continuing the pattern of negative growth." Dingliping, Secretary General of the carbon black branch of China Rubber Association, told

according to the prediction of Jiangxi black cat company, the company's loss in the first half of the year was at least 55 million yuan, compared with a profit of more than 42 million yuan in the same period of last year. Yongdong Chemical Co., Ltd. predicts that the net profit in the first half of the year will rise by 2.65% under the best conditions and decrease by nearly 30% at the worst

it is understood that Shanxi Hongte Coal Chemical Co., Ltd. was forced to stop production due to the breakage of its capital chain due to the bankruptcy of mutual insurance enterprises; The machinery and equipment and special railway lines and other assets of Shanxi HEMA carbon black Co., Ltd. were disposed of. The two companies withdrew from market competition, alerting the carbon black industry. Some enterprises have taken effective measures in product research and development, sales policies, management means, market development and other aspects, and have the courage to accept the dual test of reducing production capacity and adjusting structure

experts suggest that we should abandon low-end production capacity and turn to high-performance pigment carbon black, conductive carbon black, carbon black for industrial rubber products and other varieties with higher profits. The conductive carbon black, a high-end product independently developed by Yongdong chemical, has reached the international advanced level after being identified by the Department of science and technology of Shanxi Province, breaking the monopoly of foreign companies, and the product has been widely recognized by shielding material manufacturers and other customers

in 2015, black cat carbon black timely adjusted its market policy, revised the previous sales policy focusing on market sales, and further strengthened the management of sales expenses. When the sales volume was basically flat, the business development expense of the largest expenditure item decreased by 49.89%

Longxing Chemical, whose business conditions were greatly affected, had the flavor of a family business at the beginning of its establishment. With the expansion of the enterprise and the development of the industry, it began to attract industry talents from Tianjin, Jiangsu, Shandong and other places, but focused on technical experts. With the industry situation getting worse and worse, the company realized that only by introducing professional managers into the top management and looking for new profit growth points can it ensure the long-term stable development of the enterprise

whether the introduction of professional managers can change the world of Longxing Chemical Industry, insiders told China Rubber magazine that the effect is worth looking forward to. "Because they should have a process of understanding the carbon black industry and enterprises. Although they have a set of management ideas and methods, if they are careless, they will ruin their reputation."

Guangdong Haiyin Co., Ltd. divested its carbon black business from listed companies through asset replacement in May 2013, and the changes of its subsidiary Maoming Huanxing carbon black Co., Ltd. will no longer have an impact on the performance of listed companies

as an equipment supporting enterprise, it also feels the warmth and coldness of the carbon black industry. In 2015, although the sales revenue of carbon black equipment of Qingdao degut energy saving equipment Co., Ltd. increased by about 20%, its proportion in the current operating revenue decreased by 23 percentage points to 46.00%. In view of the reduction in the number of new projects in the carbon black industry, the company actively expanded its overseas market and undertook projects from companies such as Richardson of the United States and Colombian of Brazil. The international market sales revenue increased by 4.5%

facing the situation of intensified trade frictions in the tire industry, both tire exports and carbon black exports have made our buildings safer and more uncertain. Industry insiders believe that in order to expand China's carbon black industry, in addition to domestic production, "going out" and building factories abroad is also a way out

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