In the first half of this year, China’s export of carbon black totaled 351,645.95 tons, lessening 9,107.43 tons or 2.52% from the same period of 2015, and was down by 62,222.04 tons or 15.03% from the same period of 2014, showing a declining trend.
China's carbon black exports had been serious over the past few years and export-oriented companies suffered severely.
Export destinations mainly in Southeast Asia
In the first half of this year, the export destinations of carbon black from China were mainly in Asia, particularly in Southeast Asia, in which accounted for 59% of total carbon black exports.
Thailand was the largest carbon black export destination of China with an export volume of 84,728.75 tons; the second largest one was Indonesia with 60,094.2 tons.
Japan and Republic of Korea were also key export destinations, in which accounted for 15% of the exports.
Southeast Asia being the major carbon black export destination of China for a few reasons.
Firstly, it closes to China geographically and the export is convenient and cheap.
Secondly, it is a major producer of rubber and related products where has large demand for carbon black.
Thirdly, tire companies have established or expanded their plants in Southeast Asia and transferred their capacities there.
Tianjin, Qingdao and Shanghai customs were the primary ports of departure for carbon black exports in the first half of this year, while most carbon blacks were shipped from Tianjin customs, accounting for about 39% of the total, and the volume from Qingdao and Shanghai customs took up 18% and 12%, respectively.
Producers in passive situation
In the first half of this year, China's carbon blacks were largely exported through general trade. Only a few were exported via small border trade, free trade zones or other means.
The major shipping addresses of carbon black from China were Jingdezhen of Jiangxi province, Xingtai of Hebei province, Yuncheng of Shanxi province, and Dezhou of Shandong province.
China's leading carbon black producer Black Cat Carbon Black locates in Jingdezhen, which ensured the city's carbon black export staying the first place with an export volume of 100,535.852 tons, accounting for about 37% of the total; the export volumes from Xingtai and Yuncheng took up 13% and 10%, respectively.
In the second half, China's export of carbon black was predicted to decline further.
Raw oil producing carbon black in China has been coal tar added with anthracene oil, ethylene tar, or other deeply processed oil, while in other countries, they produce carbon black with FCC oil.
As international oil price stayed low, the price of FCC oil is much lower than coal tar in China, which becomes an obstacle for China's carbon black export.
Except rigid demand, if oil price keeps low in the second half of this year, China's carbon black exporters will be trapped in a passive situation and the exports can hardly increase.
