The annual report announced that the carbon black industry was suffering from “Waterloo”!
Recently, listed companies in the rubber industry have publicly disclosed their business in 2018. In addition to Jinneng Technology, the mainland carbon black listed companies Black Cat, Longxing Chemical and Yongdong Chemical have released detailed performance information. International China Rubber also revealed its annual operating income and other data.
According to China Rubber, four large carbon black listed companies have achieved significant growth in operating income in 2018. Among them, Yongdong Chemical has increased by more than 30%, and these companies have all contributed to the growth of revenue. As the price of the product continues to rise.
From the perspective of net profit distribution, only the performance of black cat carbon black has declined in the three companies that released detailed results. In fact, Yongdong Chemical achieved a profit of 229 million yuan in the first three quarters, with a profit growth rate of 63.16%. That is to say, its profit rate slowed down in the fourth quarter; Longxing Chemical’s high growth rate was based on the profit of 0.49 billion yuan last year, and 133 million yuan is still lower than the industry average. .
In the fourth quarter, the carbon black industry suffered from “Waterloo”
Some people in the industry told China Rubber that China's carbon black industry entered a boom period in 2017, and all companies have made a fortune. The good situation has continued until September of 2018, and carbon black products began in the fourth quarter. The prices of raw materials for manufacturing have been upside down. The losses after October have reduced the annual profit of carbon black enterprises, and some even suffered losses.
He added that since August, the price of coal tar, the main raw material of carbon black, has started to rise. With the arrival of the more stringent heating season, the coal tar has risen rapidly from 2,800 yuan (ton price, the same below) to 11 4200 yuan in the middle of the month, an increase of nearly 50%.
At this time, the price increase of carbon black products on the market is far from keeping up, and some enterprises have already incurred losses. By mid-November, the international crude oil price had fallen off the cliff, the market supply of coal tar was far greater than the demand, which led to a sharp decline in the price of coal tar. The carbon black industry was shaken by the price, “high price to buy, low price to sell” "Most of the companies complained in the fourth quarter."
From the first three quarters of Black Cat Carbon Black, we can see that the company's performance in the first nine months of 2018 is still in a hot trend. The net profit of the company has reached 439 million yuan, an increase of 37.95% over the same period of the previous year. That is to say, the company suffered a net loss of 37 million yuan in the fourth quarter due to fluctuations in the price of carbon black feedstock.
Several other companies have also revealed that fluctuations in raw material prices have made it difficult for companies to make profits in the fourth quarter, and their annual net profit has been affected.
Analysis of changes in corporate performance
Black Cat Carbon Black said that its carbon black business operation was better in the first three quarters, and the profitability of its products was relatively stable. It can be said that the production and operation conditions are hot, but since the fourth quarter, the price of raw oil has fluctuated greatly and the domestic economic growth rate has been accelerated. The combination of slowdown and increased trade friction has caused a certain degree of operating loss and price loss, and the annual profit level has declined.
Longxing Chemical's performance growth is mainly attributed to the substantial increase in gross profit. The company mentioned that with the adjustment of the “one size fits all” policy by the government, the main carbon black enterprises have maintained a high operating rate and absolute market share. Rate, corporate profitability increased, and business conditions are good.
Yongdong Chemical pointed out that in the past year, the company has achieved further improvement in internal management level, and the continuous increase in product prices has also led to an increase in profit margins. At the same time, in 2018, the company's new construction projects have been put into production, and the product supply capacity has been greatly improved.
In addition, the above companies all expressed their concerns about overcapacity in the carbon black industry. Many companies began to expand their production capacity on a large scale in 2017. According to the China Rubber Association Black Carbon Branch, the newly added capacity in 2018 is close. 600,000 tons, at present, the national carbon black production capacity has exceeded 7.5 million tons, while the carbon black demand is only more than 5.5 million tons, the large excess capacity is still a "big mountain" in front of enterprises.
As the most direct and important downstream industry of carbon black products, the rubber tire industry has suffered from the tightening of production capacity and the slow sales of products due to frequent trade frictions. In recent years, the growth of the downstream automobile industry has lost momentum. The demand for carbon black may shrink, which is a complete problem for the carbon black industry with oversupply.