Adhesives Magazine

Carbon Black Production Continues Shift to Asia

March 3, 2014

Most of the carbon black manufacturing units in the western world, especially in North America and Europe, are being forced to shut down their operations because of the heavy competition they are facing from low-cost Asian manufacturers, according to Tech Archival analysts. This has resulted in shift of global carbon black manufacturing capacities toward Asia, fueling the growth of new manufacturing capacities, especially in China and India. It is expected that by 2015, nearly 65% of the global carbon black demand will come from Asia, which will only further strengthen the region’s position as the largest producer and consumer of carbon black.

Benefiting from this global shift, the Chinese carbon black market reportedly recorded total sales volumes of more than 3 million tons and generated nearly $5 billion in revenues in 2013. Likewise, the total domestic production volumes and export volumes continued to grow, continuing China’s presence as the world’s largest producer and net exporter of carbon black by 2013.

With an abundance of resources, significant foreign investment, and a favorable business climate, China has rapidly transformed itself into world’s fastest-growing economy. Benefiting from this positive environment in the country, a large number of players entered into carbon black manufacturing and have been successful in operating scale economies, which allows them to offer large quantities of low-priced carbon black.

Since Chinese manufacturers are receiving good profit margins, it is also driving the market growth to reach higher levels. Performance of the Chinese carbon black market is expected to continue growing steadily through 2018, reaching annualized revenues close to $7 billion in 2018.

For more information, visit www.techarchival.com.