August 27,Longxing ChemicalAccording to the release of the 2021 semi-annual report, the company achieved revenue of 1.678 billion yuan in the first half of this year, a year-on-year increase of 73.27%; it was achieved attributable to listed companiesshareholderofNet profit123 million yuan, a year-on-year increase of 4586.51%; the net profit attributable to shareholders of listed companies was 124 million yuan, a year-on-year increase of 9418.91%.
August 27,Longxing ChemicalSecretary of the Board Liu Feizhou told a reporter from the Securities Daily: “The substantial increase in the company’s net profit is due to the substantial increase in the operating rate of downstream tire companies, and the strong market demand. The price of carbon black has remained at a relatively high price. Release the boom in production and sales.”
Hu Qimu, chief researcher of the China Steel Economic Research Institute, analyzed to reporters: “In the first half of the year, driven by the demand for economic recovery and the support of the cost of upstream raw materials, the price of carbon black has repeatedly hit record highs.Longxing ChemicalAs a leading carbon black product manufacturer in the industry, its main business is booming in production and sales, and through technical advantages and a sales-based production model, it has achievedPerformanceSubstantial growth. At present, the cost of upstream raw materials continues to be high, and the profit margin of carbon black manufacturers has been compressed. Since the second half of the year, there are signs of marginal slowdown in downstream demand. It is expected that the carbon black market may experience high volatility. “
Big sales of carbon black products in the first half of the year
The main business of Longxing Chemical is the production and sales of carbon black, white carbon black and coal tar products. In the first half of 2021, the company produced 232,600 tons of carbon black from January to June 2021, and sold 234,300 tons of carbon black, achieving a production-sales rate of 100.73%.
In terms of products, Longxing Chemical’s carbon black products achieved sales revenue of 1.590 billion yuan, an increase of 79.17% over the same period last year.interest rateIs 17.79%; the white carbon black realized sales income of 50,068,900 yuan, an increase of 4.81% over the same period of the previous year, grossinterest rateIt was 17.28%; the sales income of electricity and steam was 37.194 million yuan, an increase of 3.23% over the same period of the previous year.
Pan Helin, executive dean and professor of the Institute of Digital Economy of Zhongnan University of Economics and Law, said in an interview with a reporter from the Securities Daily: “Carbon black is mainly used in pigment coatings, rubber reinforcement, electrical conductivity and other fields. Carbon black is not a new material. , Its use has a long history, and the source is not single, and the industry demand is relatively stable. Longxing Chemical has seized the opportunity of rising commodity prices in the first half of the The double growth of net profit has laid the foundation for the company’s long-term development.”
Regarding the increase in the gross profit margin of carbon black products, Liu Feizhou explained: In early 2020, due to the outbreak of the domestic epidemic, the automobile market sales were weak, the operating rate of tire companies fell sharply, and the weak market demand for carbon black caused the sales volume and price of carbon black to fall. The gross profit margin of black sales remained at a relatively low level. Since the beginning of this year, the large-scale outbreak of foreign tire companies and carbon black companies has led to a sluggish operating rate of foreign tire companies and carbon black companies. At the same time, the domestic epidemic has been steadily controlled, and consumer demand has gradually rebounded. Great improvement.
The carbon black market may still maintain a certain degree of popularity in the second half of the year
In the first half of 2021, the market price of carbon black is on the rise as a whole, with the highest price exceeding RMB 8,000/ton, which is the highest level in previous years. According to data from Jinlianchuang, the price of carbon black is generally adjusted for new orders in June, and the price increase is 300-800 yuan/ton.
From the perspective of supply and demand, carbon black is one of the main raw materials for tires. As a reinforcing agent and filler in the production of rubber, it can effectively improve the strength and wear resistance of rubber. According to the National Bureau of Statistics, from January to May 2021, the cumulative output of rubber tires nationwide was 380 million, an increase of 35.1% over the same period of the previous year.
Regarding the performance of the carbon black market in the first half of the year, Liu Feizhou said, “Benefiting from the steady control of the domestic epidemic, the foreign epidemic has caused some foreign tire companies and carbon black companies to reduce their operating rates. Domestic tire companies have a relatively high operating rate, and the domestic carbon black market The demand is strong and the price remains at a relatively high price. At the same time, as environmental protection inspections and law enforcement have increased in recent years, some small and medium-sized carbon black companies that do not meet environmental protection requirements have been gradually eliminated from the market, and the overcapacity has eased. The above superimposed reasons have made the increase. The carbon black market performed well in half a year.”
In the first half of this year, under the dual effects of upstream and downstream, the carbon black industry ushered in a high boom. Looking forward to the second half of the year, Liu Feizhou analyzed, “In the second half of the year, it is expected that the domestic epidemic will also be under control. There will be no major changes in foreign epidemics in the short term. At the same time, the normalization of safety and environmental inspections will help maintain the stability of the industry order. The market conditions should remain in a more stable state.”
Public data shows that in August, the domestic carbon black N330 price reached around 7,400-7800 yuan/ton. Although it declined compared with the previous month, the increase was still more than 80% compared with the same period last year.
Pan Helin said that carbon black is a chemical product, which changes with the global economic cycle and fluctuations in global demand. The current chemical products are in an upward cycle, so the strength of the carbon black market will continue for some time. achitechive,Automobile industryThe development of the new energy industry is conducive to maintaining a certain degree of popularity in the carbon black industry. Of course, the cycle has its ups and downs. It is very important for enterprises to seize the opportunity of the high cycle.
Shengang SecuritiesAnalystCao Xute believes that the continuous rise in the prices of raw materials such as coal tar and anthracene oil will provide a strong cost support for the price of carbon black. With the arrival of Jinjiuyinshi, tire companies are expected to start operations. In addition, with the gradual control of the global epidemic, the demand for travel in Europe and the United States has increased, and the demand for tires is expected to gradually increase. The continued improvement of both supply and demand will also help the industry continue to pick up.
(Source: Securities Daily)
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