Speciality carbon black experiences rapid increase in demand: Ken Research

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Carbon black is a fine, deep black coloured powder that is formed by burning hydrocarbons in insufficient air. It is used in various sectors due to its reinforcing, conducting and tinting properties. The tyre industry is the biggest consumer of carbon black. It increases the tensile strength and abrasion resistance of the automotive tyres and provides longevity and strength. There has been a rise in demand for carbon black for paints and coatings and inks. It is expected that this demand will continue to rise in the future. Speciality carbon blacks enhance conductivity, viscosity and UV protection and provide sharp colour. The contribution of speciality blacks to the industry has been on a rise as they from a major portion of non-rubber application of carbon black.

Metallurgy is yet another emerging consumer market for speciality carbon black. Apart from this, the suppliers also favour them as they have a higher profit margin than the furnace blacks because of being higher priced. In addition, the cyclicality in the rubber and motor vehicle industries do not affect the demand for special blacks, which is a major advantage. Industrial rubber compounds and other equipment that are used in the construction and manufacturing sectors demand high quantities of carbon black to provide strength. The industry faces threat from other materials that may substitute carbon black such as Silica, which may affect the demand for carbon black. The rising concerns for environment are also a constraint for the growth of the industry. The prices of raw materials for production of carbon black have also been fluctuating which has caused uncertainty in the market.

According to the market research report “Global Carbon Black Industry Situation and Prospects Research report 2017“, in 2016, the world economy expanded by just 2.2 per cent, the slowest rate of growth since the Great Recession of 2009. Underpinning the sluggish global economy are the feeble pace of global investment, dwindling world trade growth, flagging productivity growth and high levels of debt. World gross product is forecast to expand by 2.7 per cent in 2017 and 2.9 per cent in 2018, with this modest recovery more an indication of economic stabilization than a signal of a robust and sustained revival of global demand. Given the close linkages between demand, investment, trade and productivity, the extended episode of weak global growth may prove self-perpetuating in the Carbon Blackence of concerted policy efforts to revive investment and foster a recovery in productivity. This would impede progress towards the Sustainable Development Goals (SDGs), particularly the goals of eradicating extreme poverty and creating decent work for all. The competition in the global carbon black market is very high. Birla Carbon, Cabot Corporation and Orion Engineered Carbons is the top three companies present in the market. The other significant companies having good market presence include Bridgestone Corporation, Phillips Carbon Black Ltd., China Synthetic Rubber Corporation, Mitsubishi Chemical Holdings Corporation, Columbian Chemicals Co., Continental Carbon Company, Evonik Industries AG, Sid Richardson Carbon & Energy Co. and Tokai Carbon Co. Ltd. among others. All the companies have been making heavy investments in research and development to improve their product quality and earn a competitive edge. Many of the companies are now increasing their production of speciality carbon black or shifting their current production from standard carbon black to speciality carbon black due to the higher price and increasing demand for the same.

The largest carbon black market in the world remains to be the Asia-Pacific region. The developing countries like India and China have been the major contributors to carbon black market because of the growth in tyre manufacturing facilities as well as the expansion of the construction sector. Many of the tyre manufactures are also shifting their manufacturing units to these countries, which will further lead to an increase in demand for carbon black. The region forms about 37% of the global demand of the industry and is expected to increase in the coming years. Latin America and Eastern Europe are also expanding their construction sector and hence a rise in demand for carbon black. The demand for speciality black is anticipated to grow in developed economies like Western Europe and USA while the demand for carbon black may remain stagnant.

Key Topics Covered in the Report

Global Carbon Black Industry Market Research Report

Global Carbon Black Industry Market Size

Global Carbon Black Industry Market

Global Carbon Black Industry Production Output

Global Carbon Black Industry Import Volume

Global Carbon Black Industry Export Volume

Global Carbon Black Industry Market Future Outlook

Global Carbon Black Industry Market competition

For further reading click on the link below:

https://www.kenresearch.com/metal-mining-and-chemicals/chemicals/global-carbon-black/84795-101.html

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Ken Research

Ankur Gupta, Head Marketing & Communications

query@kenresearch.com

+91-124-4230204

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