Why Blackmasterbatch prices in Asia Pacific region expected to be lower in the month of May 

 The Blackmasterbatch market in India had seen a slight lowering of demand in themonth of April. Prices of General Purpose Black masterbatch (40% Carbon Black)have been quoted in the range of INR 110 to INR 125 per KG, while those of black masterbatch (50% Carbon Black) have been quoted in the range of INR 155 to INR 170 per KG on an Ex-Location (Delhi-NCR) basis which has since been driving the demand. Carbon Black prices too have seen a dip in the month of April compared to March as feedstock crude oil and natural gas prices softened in the first two weeks of April. Demand from the downstream automotive industry had seen a slight dip in the month of April as production outputs saw a decrease compared to the quarter ending March. 

China too had been witnessing a lowering indemand from the downstream automotive sector. As the pandemic situationworsens, automotive production lines have seen a disruption in production. The price of general-purpose Black Masterbatch (40% Carbon Black) have been assessed at USD 1055/MT on an FOB Tianjin basis as of the first week of April. Lowered prices of upstream crude oil and natural gas in the first two weeks of April in the Asia Pacific region also had a role to play in the lowering of prices in the last couple of weeks. 

Suppliers from across the region (APAC) areof the opinion that prices of Masterbatchare set to further soften in the month of May as feedstock prices will likely easeup. OPEC countries have pledged to up the production of crude oil during thequarter ending June. This could lead to a relaxation in prices of Carbon black and, in turn, the prices of Black masterbatch in the APAC region. Demand from the downstream automotive and packaging industries is also expected to be lower than that in the previous quarter.