Jiangxi Blackcat Carbon Black Inc. Ltd. lately released the financial report for 2015.
The report shows that the operating profit, total profit and net profit attributable to listed shareholders in 2015 dropped 81.36%, 61.88% and 81.97%, respectively, from 2014.
The company reckons that the profit plunge was triggered by low oil price, which led to narrowing, even reversed, price differential between domestic and foreign carbon black products, foreign carbon black imports somewhat exacerbated overcapacity in China’s carbon black market.
Since the second quarter of 2015, tire producers had strong willing of de-stocking, raw material prices decreased fewer than tire prices, gross profit margin of carbon black dropped considerably.
In addition, sliding carbon black products and RMB depreciation were also primary factors result in the company’s losses.
Blackcat Carbon Black said the company had taken actions addressing the situation, but failed in stopping the profit plunge.
