World Carbon Black

Global demand to rise 4.3% annually through 2013
World carbon black demand is forecast to rise 4.3 percent per year through 2013 to 11.6 million metric tons, bolstered by a healthy global rubber market over the same period. Gains will be exaggerated to some extent by the fact that growth will be rising off a relatively weak 2008 base, when a significant part of the world saw the beginnings of recession. The vast majority of carbon black finds use as reinforcement material in vulcanized rubber goods, including over 60 percent in motor vehicle tires alone. Carbon black demand from the tire sector is projected to increase 3.7 percent per year through 2013 to 6.9 million metric tons. The nontire rubber carbon black market will expand 4.8 percent per year through 2013 to 3.6 million metric tons.

Special blacks to be fastest growing market
The market for special blacks will advance a strong 5.9 percent per year to 1.2 million metric tons. While special blacks comprise less than ten percent of the overall global carbon black market on a tonnage basis, they command considerably higher per-kilogram prices than commodity furnace blacks. Carbon black manufacturers will continue to spend a disproportionate portion of their research and development budget on the special blacks sector. In addition to higher margins, a strong position in special blacks offers suppliers greater protection from cyclicality in the highly interconnected rubber, tire and motor vehicle industries. Although demand for special blacks will remain concentrated in the plastics, inks and paints sectors, other uses such as conductive fillers will hold the best growth prospects through 2013.

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