New prices for chemicals such as carbon black, barium sulfate, coal tar, and lithium iron phosphate will be implemented in August.

Upstream bulk raw materials such as coal, barite, feedstock oil, and coal tar have continued to rise in price, causing a significant climb in corporate production costs. This has have become the core driver of this round of concentrated price adjustments across multiple categories, with cost pressure being fully transmitted throughout manufacturing chains such as rubber, lithium batteries, and chemical fillers.

Carbon Black: Cabot raises rubber carbon black by $100/ton; crude oil cost inversion forces price adjustment

Cabot (China) Investment Co., Ltd. officially issued the "Notice on Price Adjustment to Rubber Carbon Black" on July 27, 2026, specifying that the price adjustment will be efficiently from August 1, 2026. The rule to this adjustment is a uniform increase of $100/ton based on the July execution price of rubber carbon black produced in China, equivalent to a RMB increase of 650 to 700 yuan per ton.

Cabot explained the reason to the adjustment in the notice: the prolonged selling price of carbon black has been at a low level, and the recent increase in feedstock oil has far exceeded the room to carbon black price hikes, placing pressure on the company's operations. To stabilize product condition and ensure the sustainability of prolonged supply services, the company initiated this price adjustment. Specific details can be confirmed by contacting the customer manager.

Precipitated Barium Sulfate: Shaanxi Fuhua raises price by 100 yuan/ton; barite and coal drive up costs

Shaanxi Fuhua Chemical Co., Ltd. issued a price adjustment letter on July 29, 2026, stating that starting from August 1, 2026, the supply price of precipitated barium sulfate to cooperative customers will be increased by 100 yuan per ton based on the original pricing.

This round of price increases is driven by two major upstream raw materials: first, the supply of barite raw materials is tight, and market prices continue to rise; second, coal prices are operating at a high level. With the combination of these dual factors, corporate production costs continue to rise, and the increased costs can only be digested through price adjustments.

Coal tar and lithium battery raw materials follow suit with price hikes; costs rise across the entire chemical sector chain

In addition to the two filler categories of carbon black and barium sulfate, coal tar and lithium battery cathode materials are also seeing widespread price increases:

1. Coal Tar: Multiple refineries under PetroChina concentrated on price adjustments, with Fushun coal tar rising by 300 yuan/ton; coal tar prices in Daqing, Jinzhou, Jilin, Jinxi, and other regions increased within the range of 100-300 yuan/ton. The price hike on the energy end is being transmitted to downstream rubber, carbon, and chemical deep-processing industries.

2. Lithium Iron Phosphate: Hunan Yowneng announced an across-the-board increase of 2,000 yuan/ton in lithium iron phosphate processing fees. Currently, companies are in a state of full production, yet capacity still cannot meet market orders. The tight supply and demand, coupled with rising upstream auxiliary material prices, has simultaneously driven up processing costs.

Summary of sector Status

The window period to this round of concentrated price hikes to chemical raw materials is uniformly locked to implementation on August 1. The logic behind the price hikes is highly consistent: upstream energy and mineral raw materials have seen substantial price increases, and the original pricing of downstream chemical manufacturing sectors can no longer cover production costs.

This concentrated price increase across multiple categories implies that the procurement costs to mid-to-downstream manufacturing industries such as rubber items, lithium battery manufacturing, coatings, and plastic fillers will rise overall. Cost pressure in the manufacturing chain is transmitted level by level from top to bottom, and there is a possibility that subsequent terminal product costs might follow suit with an upward float.