Market Perspective: An Overview of the Current Situation of Global Carbon Black Manufacturers in Terms of Layout and Production Capacity

Carbon black, derived from the pyrolysis process of ethylene pyrolysis tar, coal tar and FCC tar, is mainly used in the tire manufacturing industry. In addition, it has also shown a wide range of application potential in the fields of rubber products, plastic products, inks, coatings and new energy.

*The top 10 carbon black companies in the world account for more than 60% of the share

The major brands in the carbon black market include Cabot Carbon Black, Birla Carbon Black, Orilon, Black Cat Carbon Black, Tokai Carbon, and others. From the perspective of production capacity ranking, Cabot of the United States topped the list with a production capacity of 2.292 million tons, occupying 12.2% of the global market share, highlighting its leading position in the field of carbon black production. It was followed by India's Birla Carbon, which reached 2.125 million tonnes, accounting for 11.3% of the global production capacity, becoming the market leader in Asia. Germany's Orion ranked third with a production capacity of 1.371 million tons, demonstrating the strong strength of European companies in the carbon black industry.

*China's carbon black industry is rising rapidly, with a number of Chinese companies at the top of the list

In the global carbon black industry, the performance of Chinese companies is particularly bright. Jiangxi Black Cat ranked fourth with a production capacity of 1.14 million tons, accounting for 6.1% of the global production capacity, becoming the leader of China's carbon black industry. As a representative of enterprises in Taiwan, China, China Rubber ranks fifth with a production capacity of 882,000 tons. In addition, Chinese companies such as Jinneng Technology, Shanxi Anlun, Shanxi Sanqiang, Longxing Chemical, Shanxi Yongdong and Suzhou Baohua are also on the list, jointly demonstrating the strong strength and diversified development of China's carbon black industry.

*The competition pattern of the global carbon black industry is diversified

Other key players include companies from Japan, Russia, South Korea, and other countries and regions. In the future, the global carbon black industry will present a more diversified and professional competition pattern, and major companies need to continue to innovate, improve technical level and service quality to cope with market changes and challenges.

Looking at the data, the Asia-Pacific region dominates the carbon black market, with China and India having the largest consumption, followed by Europe. In 2023, the Asia-Pacific region accounted for more than 50% of the global carbon black market. Among them, China topped the list with a production capacity of 8.68 million tons, accounting for 46.2% of the world's total production capacity. This data not only demonstrates China's absolute advantage in the field of carbon black production. China is followed by India, with a capacity of 1.882 million tonnes, accounting for 10% of the world's total capacity. India's carbon black production has shown rapid growth in recent years, with a year-on-year growth rate of 22.36%. This figure not only reflects the strong demand in the Indian domestic market, but also means that its share of the global carbon black market has been further increased. In the Asia-Pacific region, the booming tire and rubber industries are driving the expansion of the carbon black market. Governments in developing countries such as China and India are committed to achieving universal EV adoption by 2030, such as India's adoption of the National E-Mobility Mission, which is expected to boost demand for automobiles in the coming years, which in turn will boost the growth of ancillary industries such as tires, which have carbon black as the core raw material. At the same time, the continuous improvement of the market penetration rate of specialty carbon black and the continuous growth of applications in the battery field have become the main driving forces to drive the market in the short term. However, increasing investment in recycled carbon black and volatile raw material prices are also challenging for the market growth. Looking ahead, the increasing penetration of electric vehicles is expected to bring new development opportunities to the carbon black market.

*The total production capacity of the industry increased slightly, and the market demand continued to be strong

China dominates the Asia-Pacific market, with a higher share in both carbon black production and consumption. In 2023, the total production capacity of China's carbon black industry will reach 8.863 million tons, an increase of 3% from 2022. This growth is modest, but it is still significant given the widespread use of carbon black in tires, rubber products, paints and coatings, and the textile industry. Especially with the growing demand for tires in domestic and foreign markets, China's tire industry is experiencing substantial growth, which further boosts the market demand for carbon black. According to the data released by the National Bureau of Statistics, the output of rubber tire tires in 2023 increased by 15.3% from the same period of the previous year to 987.754 million, and the cumulative export volume also achieved a year-on-year increase. At the same time, China's automobile production and sales will also exceed 30 million units for the first time in 2023, hitting a record high. Behind these data is the strong demand for automobiles and tires in the domestic and foreign markets, and it is also a strong driving force for the sustainable development of the carbon black industry.

*Diversified applications boost China's carbon black industry, and multiple challenges need to be solved

China's carbon black industry has shown vigorous development potential under the influence of multiple factors such as stable production capacity and growth, continuous strong market demand, double growth in tire production and automobile production and sales, and diversified application promotion. However, while the industry is ushering in broad prospects, it is also facing many challenges and problems.

In recent years, the problem of overcapacity in the carbon black industry has become increasingly prominent, and the average operating rate has hovered around 70%, far below the ideal level. This structural overcapacity, coupled with the recession of the international market and the slowdown of domestic demand, has led to the serious compression of the overall profit margin of the industry, the limited innovation ability of enterprises, and the obvious lack of development stamina. How to find a breakthrough in the fierce market competition has become an urgent issue in front of the industry.

It is understood that as the core cost factor of carbon black production, the price fluctuation of raw oil is directly related to the profitability of enterprises. At present, the carbon black industry has lost the initiative in market pricing due to the high proportion of raw oil, and the profit margin of enterprises has become extremely limited, and even often faces the risk of loss.

In addition, with the improvement of global environmental awareness and the acceleration of the "dual carbon" goal, the carbon black industry is facing huge environmental pressure. With CO₂ emissions of up to 10.3 million tonnes per year and the same amount of fuel consumption, the traditional production model with high energy consumption and high emissions is unsustainable. In this context, the carbon black industry urgently needs to explore the path of green and low-carbon transformation, accelerate independent technological innovation, promote industrial technology upgrading, and lead the industry to a new path of green development in line with China's national conditions with scientific and technological strength.