Carbon Black Market Intelligence

Industry Outlook

Carbon Black Market Size and Global Outlook

• The global carbon black capacity stands at 15.78 MMT. Demand is expected to grow at a CAGR of 3.5–4.0 percent until 2024

• Demand from the tire and rubber industry is expected to lead the carbon black industry growth

• About 0.91 MMT of capacity is expected to be added in Asia and Russia during 2019–2022. Environmental regulations and low profit margins are the major reasons for capacity reductions. Impact of these capacity reductions is expected to be minimal, as there is enough capacity available

• Asian producers have an advantage in the carbon black industry over the western players, due to the abundant availability of feedstock (coal based)

• Western producers have low operational cost, due to their better process technology, which gives 35 percent reduced input cost than the Asian players in the carbon black market

• Areas like North America, Europe and APAC have a high supply and high demand of carbon black market share

Demand Market Outlook

• Carbon black pricing and availability are highly driven by the CBFS in the region. The US and Europe carbon black market have balanced dependence on crude and coal-based CBFS, while the Asian market is highly dependent on coal-based CBFS

Supply Market Outlook

The level of consolidation of each supply market varies greatly. The supply market capacity for the major markets is described. The differences in the availability of the raw material as well as the better use of technology in certain countries create cost structure variations. These variations and the causative factors are also stated. 

Demand Market Outlook

Carbon black prices and availability have different drivers regionally. Some countries depend on crude and others depend on coal-based CBFS. The technological advancement levels also vary. This section of the report highlights information about the demand trends, pricing, capacity addition, and other important demand market facts and figures for each region. 

Carbon Black Industry Best Practices

The industry pricing practices and the calculation of the carbon black price are stated. The individual components of the pricing calculations are also described. Carbon black pricing is tracked from the feedstock right up to the yield.

Global Market Size - Carbon Black

The growth pattern and CAGR over the recent years are illustrated along with the forecast for the future growth of the market. 

Global Capacity–Demand Analysis

The global carbon black world capacity stands at 15.8 MMT in 2017. Market is oversupplied on a global scale, with about 2.4 MMT of excess capacity in 2017
Demand is expected to grow at a CAGR of 3.5–4.0 percent until 2022, driven by tire in Asia and specialty carbon black industry across the globe

Capacity: 

• On the capacity front, about 1.02 MMT of capacity is expected to be added to the global carbon black supply base from 2020 to 2022

• Operating rates are expected to be in the range 80–85 percent for the next five years

• Growing environmental regulations against carbon emissions have led to carbon black producers in the US focusing on adding capacities at their plant locations in Asia to meet their domestic demand

Demand Outlook: 

• Carbon black consumption is expected to increase at a steady pace over the next five years, largely spearheaded by the demand from the tire industry

• China dominates the global carbon black demand with about 41 percent of the market share in 2018. This demand is expected to grow, along with other Asian economies, like India, Indonesia, and other emerging economies

• Specialty carbon black applications are expected to pose strong demand growth until 2024

Global Demand by Application 

The applications for carbon black are many and it is the growth of these industries that drives the demand for carbon black. The global demand by application is illustrated in this section of the report. The downstream demand outlook is also detailed with forecasts of the sector likely to create the largest demand in the near future. 

Global Market Outlook 

The carbon black market dynamics in each country are different. The supply, demand, and market nuances of each region are detailed in this section of the report. It gives an at-a-glance analysis of all the major regions.  

Regional Market Snapshot

This section examines each regional market in detail. It provides vital information about each market and the maturity of the suppliers and buyers in the market. The report analyses the capacity vs demand of each region as well as the market share of the key suppliers. The demand trends, supply, and capacity are explained. The trade dynamics report of each region details the import and export share by country. This export and import pattern is analyzed with the reasons for the existing trade dynamics.

Global Trade Dynamics

• Specialty grades and price of the material have been the major drivers of trade in the carbon black market

• North America carbon black market: There has been marginal fall in the imports during 2016, due to the surplus availability of the domestic material

• Europe: Exports have increased marginally in 2016, due to increased distribution of carbon black through the European ports

• Asia: Net exporter, mainly exporting to other Asian countries

Market Overview

• The production cost of carbon black is lowest in Asia, due to availability of cheap feedstock and low labor rates. The use of distilled coal tar, due to vast resources of coal is the key reason for the low production cost. Feedstock holds ~60 percent share in the cost structure of carbon black production.
• About 0.91 MMT of carbon black capacity is expected to be added to the global production base by 2022. Except for Russia, all the other capacities are concentrated primarily in the developing regions
• Currently, the demand for carbon black continues to be positive, supported by the automobile industry with a sufficient supply in place. The carbon black market witnessed expected change in price levels
• Tire industry is expected to remain as the major demand driver
• Environmental regulations are affecting the carbon black business growth

Industry Analysis

The carbon black market industry analysis section examines and analyses the industry from all perspectives to present a well-rounded report on each of the major regions. 

Industry Drivers and Constraints

It is very important to learn the industry drivers and constraints to fully understand the carbon black market. The report describes the major downstream applications that drive the sector. It also enumerates the emerging new applications that can drive demand in a big way. The growth of existing applications will also cause a cascading increase in carbon black demand.

As with every industry, there are constraints and challenges to the carbon black industry. This section of the report tells us about factors such as government regulations and customer preferences among others that could dampen the demand. The challenges offered by substitutes are also explained.

Why You Should Buy This Report

• Details on the Carbon Black market ize, the demand analysis, imports and exports, carbon black market news and carbon black world outlook.

• It gives the trade dynamics, Porter’s five force analysis and demand-supply trends and outlooks of the North American, Europe and APAC region (which includes the India carbon black market) 

• The report lists out the key industry drivers and constraints

• Overview of key suppliers like Aditya Birla carbon, Cabot corporation, Orion Engineered Carbon, etc, their profiles and SWOT analysis.