China's carbon black market to surpass $7 billion revenues by 2018

Carbon black finds application in manufacturing of a large number of industrial products including tires, industrial rubbers, belts & hoses, paints, inks, batteries, etc. It is a highly porous substance in the size of nanometres that is produced under a well-controlled manufacturing process.  

The fortune of the carbon black industry is closely associated with the automotive industry as it generates the largest demand for carbon black. On average, a normal car tyre contains nearly 3.5 kilogram of carbon black. The global tyre industry is thus the largest consumer of carbon black, consuming nearly 80% of the global carbon black demand in 2012.

Tech Archival’s recent published study on Chinese carbon black market, ‘China Carbon Black Market Assessment & Future Opportunities 2008-2018’ explores that most of the carbon black manufacturing units in western world especially in North America and Europe were being forced to shut down their operations because of the heavy competition they were facing from low cost Asian manufacturers.

This has resulted in shift of global carbon black manufacturing capacities towards Asia, fuelling the growth of new manufacturing capacities especially in China and India. Benefiting from this global shift, the Chinese carbon black market reached a massive market value of US$ 5 billion in 2012.  

Similarly, domestic installed capacity, production and export volumes grew incessantly by 2012 at a CAGR of more than 10%, strengthening China’s position as world’s largest producer and net exporter of carbon black.

In recent times, nearly all leading global manufacturers of carbon black including Cabot, Evonik, Phillips Carbon, etc have continuously invested in China to establish and expand their manufacturing capacities by 2012.  

Currently, China’s carbon black industry comprises more than 60 carbon black manufacturers, which are engaged inAir Jordan