China is the world’s largest carbon producer, production capacity of nearly 7 million tons, accounting for about 42% of global output accounted for nearly 46%. After the early after the rapid expansion of China’s carbon black production capacity growth rate of decline is expected in about 230 thousand tons this year. In addition, the supply side reforms will accelerate the process of integration of the tire industry, small scale, high energy consumption and serious pollution of enterprises will be eliminated, and the large scale and comprehensive utilization of energy, good environmental governance standards of the enterprise will further expand the development space.

Carbon black is the main downstream tire industry

Car sales this year than expected, tire demand increased significantly, which will play an important supporting role in the upstream of carbon black. Data show that in November this year, China’s automobile production and sales continue to maintain growth, the growth rate of the production and marketing chain and rose more than 10%, production and sales record. In addition the overseas market demand to pick up will also enhance the export volume of domestic tire.

Shandong as China’s tire production and export of a large province, the first 11 months of this year exports of inflatable rubber tire 210 million, growth of 14.7% over the previous year. Tire exports in November 19 million 465 thousand, the monthly export rebound again, growth of 17%, an increase of 38.3%.
Recently several tire enterprises issued a notice that, from January 1, 2017 2% increase to 3%, including Bridgestone, Goodyear and other international brands. Bridgestone is part of all steel tire product price increase of 3%, Dalian Goodyear parts truck tire specifications prices rose 3% to 5%, Fengshen TBR tire price increase of 2% to 3%.