Recently, China’s carbon black listed companies have released half a year’s performance.
It is found that in the first half of the year, the main carbon black enterprises in China were in good condition and their profits increased significantly.
Carbon black producers make big profits
On August 9, Jiangxi Black Cat Carbon Black Co., Ltd. released a half-year performance report. In the case of lower profit margin, black cat carbon black profits in the first half of the year are still growing substantially.
Data show that in the first half of 2018, the company produced 482,600 tons of carbon black and sold 483,300 tons, with a production and sales rate of 100.15%.
Over the same period, black cat carbon black business income reached 3.898 billion yuan, an increase of 26.99% over the same period last year; net profit attributable to shareholders of listed companies was 306 million yuan, an increase of 42.18% over the same period last year.
It is worth mentioning that the gross profit rate of carbon black products of this enterprise is 19.85%, which is 1.77% lower than that of the same period last year.
On August 10, Longxing Chemical (002442) Co., Ltd. disclosed its first half performance. While carbon black sales declined, Longxing Chemical’s revenue and profits kept growing.
Data show that in January-June, the company achieved a sales volume of 2037,000 tons of carbon black products, down 8.65% from the same period last year, and the sales revenue of carbon black was 1.367 billion yuan, an increase of 20.48% over the same period last year.
On August 17, carbon black producer Jinneng Technology (603113) Co., Ltd. released its first half results.
Data show that from January to June, the company’s operating income was 4.039 billion yuan, an increase of 28.74% compared with the same period last year; the net profit of shareholders belonging to listed companies was 523 million yuan, an increase of 43.57% compared with the same period last year.
Price increase is the main reason for profit
In the first half of 2018, in response to the “Blue Sky Defense” battle, environmental protection policies in Beijing, Tianjin, Hebei and surrounding areas were upgraded again.
It is understood that due to the intertwined influence of environmental protection, rectification, supervision and transportation restriction, the upstream coking enterprises have partially staggered peak production, and the coal tar market has maintained a high level shock under the support of production restriction.
Affected by this, the price of carbon black products is high. In the second quarter of 2018, the purchase price of carbon black from a large tire manufacturer in China increased by 14.01% year on year.
Carbon black producer Jinneng Technologies bluntly said in the report that the rising price of carbon black products is the main reason for its increased profits.
According to the statistics of carbon black branch of China Rubber Industry Association, from January to June, its 34 member enterprises completed 2.2 million tons of carbon black production, an increase of 3.37% compared with the same period last year.
According to the analysis, benefiting from the sustained impact of supply-side reform and environmental law enforcement policies, mainstream carbon black enterprises still maintained a high start-up rate in the first half of the year, and the supply and demand pattern of carbon black industry further improved.