Waterproof honeycomb activated carbon

Market Intelligence on Waterproof Honeycomb Activated Carbon

I. Price Trends
1. Domestic Market
- East China: Prices range from 12,500 to 13,800 CNY/ton, up 2.3% week-on-week, primarily driven by rising raw material costs.
- North China: Prices remain stable at 12,000 to 13,200 CNY/ton, with steady downstream procurement demand and limited price fluctuations due to supply-demand balance.
- South China: Prices have slightly increased to 13,000 to 14,000 CNY/ton, as stricter environmental policies have led to localized supply tightness.

2. International Market
- Southeast Asia: FOB prices have risen to 1,850 to 2,000 USD/ton, influenced by China's export restrictions and increased shipping costs.
- Europe and the US: Prices remain at high levels (2,200 to 2,500 USD/ton), with sustained strong import demand driven by increased environmental projects.

II. Supply and Demand Dynamics
1. Supply Side
- Domestic capacity utilization is approximately 75%, with some enterprises temporarily halted for maintenance due to environmental inspections, leading to a short-term supply reduction.
- The price of raw coal-based activated carbon has increased by 5% week-on-week, pushing up the cost of waterproof honeycomb activated carbon.
- The rollout of new production capacity is delayed, and it is expected that effective supply increments will not be available before Q4.

2. Demand Side
- The environmental sector accounts for over 60% of demand, with the accelerated implementation of VOCs treatment projects driving growth in industrial-grade product demand.
- The civilian market has seen a slight increase in demand for air purification equipment due to high summer temperatures, but its overall share remains below 15%.
- Export orders have grown by 12% year-on-year, primarily flowing to emerging markets such as India and Southeast Asia.

III. Cost and Profit
1. Cost Structure
- Raw material costs have risen to 65% of the total, with prices for coal-based activated carbon and binders increasing by 8% and 3%, respectively.
- Energy costs (electricity, natural gas) account for 18% of total production costs, with minimal recent fluctuations.

2. Profit Levels
- The industry's average gross profit margin has decreased to 18-22%, down 3 percentage points from last month, intensifying pressure on small and medium-sized enterprises.

IV. Policy and Industry Trends
1. Domestic Policies
- The Ministry of Ecology and Environment has issued the 'Guidelines for the Operation and Management of Volatile Organic Compound Treatment Facilities', strengthening supervision of activated carbon adsorption devices and driving demand for high-end products.
- Local governments have introduced supporting policies for 'dual carbon' goals, encouraging enterprises to adopt low-energy consumption production processes.

2. International Trends
- The EU's Carbon Border Adjustment Mechanism (CBAM) pilot scope has expanded, imposing cost pressures on Chinese export enterprises, with some orders shifting to Southeast Asia.
- The US Environmental Protection Agency (EPA) has updated air quality standards, stimulating demand for high-efficiency adsorption materials in the North American market.

V. Analysis and Forecast
1. Short-term (1-2 months)
- Price Trends: Supported by costs and tight supply, domestic prices are expected to remain high with oscillations (an increase of 2-5%).
- Demand Changes: With the approaching concentrated delivery period for environmental projects, industrial-grade product demand may see a phased increase.

2. Medium-term (3-6 months)
- Price Risks: If raw material prices fall or new production capacity is released earlier than expected, prices may face downward pressure.
- Demand Structure: The civilian market's share may increase due to autumn and winter haze treatment policies, but the growth rate will be limited.

3. Long-term (6-12 months)
- Industry Trends: With continuous strengthening of environmental policies, the demand share for high-end waterproof honeycomb activated carbon (e.g., high iodine value, low ash) is expected to rise to over 40%.
- Competitive Landscape: Leading enterprises will consolidate their market position through technological upgrades and capacity expansion, while small and medium-sized enterprises face integration pressure.

VI. Key Risk Points
1. Significant fluctuations in raw material prices (e.g., adjustments in coal market policies).
2. Environmental policy enforcement falling short of expectations, leading to slowed demand growth.
3. International geopolitical conflicts affecting export logistics and exchange rate costs.