Market Research Reports - Ken Research Global Carbon Black Industry Market Future Outlook

Speciality carbon black experiences rapid increase in demand: Ken Research
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