Carbon black is an ultrafine chemical manufactured by the burning of hydrocarbons in a limited supply of air. This finely divided chemical in the size of nanometres offers vast industrial importance to a range of industries i.e. as a reinforcing agent for rubber, as a colorant for printing ink, paint, paper, plastics, etc. Carbon black is well renowned as world's best reinforcing material for rubber related products. The global tyre manufacturers consume nearly 80% of the total carbon black demand. Recent changes in global carbon black market indicate that most of the carbon black manufacturing units in western world including North America, Europe are being forced to shut down their operations because of the heavy competition they are facing from low cost Asian manufacturers. As a result, global carbon black manufacturing capacities started shifting from western countries towards Asia especially in China, which strengthened China's position as world's largest manufacturer and supplier of carbon black in 2011.
According to "China Carbon Black Market Forecast & Opportunities, 2017" the demand for carbon black in China is expected to grow at the compounded annual growth rate of more than 10% by 2017 which is anticipated to drive the market to a market value of nearly US$ 7 Billion by 2017. China is home to world's largest automobile and chemical manufacturers which mostly determine the carbon black demand. The large abundance of requisite raw materials and inexpensive labour has attracted leading global manufacturers to establish their capacities in China. Also, it has provided an attractive stage for domestic manufacturers to grow incessantly, resulting in burgeoning numbers of small to mid-sized carbon black manufacturers. There are now more than 60 registered carbon black manufacturers who are actively planning to expand their capacity, production levels and geographical reach. Benefitting from this positive outlook, China will continue leading the contest as world's largest manufacturer and supplier of carbon black by 2017. "China Carbon Black's Market Forecast & Opportunities, 2017" includes:
The information contained in this report is based upon both primary and secondary sources. Primary research included interviews with stakeholders of carbon black industry such as manufacturers, distributors and industrial customers. Secondary research included an exhaustive search of relevant publications like newspapers, websites, and proprietary databases.