Carbon black is an essential product that is obtained when heavy petroleum products fail to burn completely. It has several industrial uses, and its strong coloration properties are used in ink toners, tires, and several industrial rubber-based products. Today, you can also see carbon black used in plastics, electronic and electrical products.
If your business uses any forms of carbon black in your products, you need to keep an eye on the market trends. Luckily, this article will go through a list of trends that you shouldn’t miss in the Europe carbon black market.
- The market for carbon black is expected to grow in great amounts in the European continent. The reason is carbon black has a good effect on the dynamic and mechanical properties of performance tires. As the demand for cars rises, it will simultaneously increase the demand for carbon black.
- The increasing popularity of self-driving cars and electric cars in Europe and across the globe will further push the demand for carbon black.
- The Asia-Pacific region dominates the carbon black market.
- Due to the COVID-19 pandemic, the demand for carbon black across the globe has dropped significantly. If you look at the latest industry stats, the carbon black market demand fell by 4.9% from December 2019 to January 2020. This shows the market is heavily affected by the pandemic, and this situation will stay for many more months ahead.
- China is the largest exporter of carbon black, with a market share of 15.9%. The Chinese government has shut down many plants in the country amidst an intensive environment protection campaign. Hence, the country is experiencing a carbon black shortage, which has caused the prices to rise.
- Carbon black is one of the primary components in the tires. Any impact on the tire industry directly affects the Europe carbon black market. The tire industry in China has been experiencing a steep decline in recent years. The negative trends in the China local automotive industry are one of the reasons for the market decline.
- China has the largest plastics industry, which accounts for 30% of world production. The demand for plastics has increased worldwide, which has inherently increased the demand for carbon black in China.
Trade Figures From 2012 to 2016
The world has changed rapidly in the last decade. Studying past trade figures gives you an idea of where the market is heading. If you look at the 2012 trade figures, the carbon black exports reached $5030 million. A look at the trade figures of 2016 reveals that the carbon black market shrunk, and the exports dropped to $3380 million.
The year 2014 was good for the carbon black market as the exports reached $5200 million and imports reached $5278 million. The trade figures were dismal for 2015 and 2016, and the carbon black market shrunk consistently.
The world carbon black market can be differentiated by grade and process. According to experts, furnace black is the fastest-growing segment. The furnace black segment was way ahead than channel black, lamp black, and acetylene black segments.
The carbon black market is further divided into two types conducive and specialty. The specialty grade carbon black market is expected to show better growth than a conducive quality.
Despite the current decline, the rubber segment’s carbon black market is expected to show higher growth than toners, coatings, printing inks. The plastics carbon black segment is smaller than the rubber segment. However, it is expected to grow at a 4% compound annual growth rate from 2018 to 2026.
The Asia Pacific market segment is the most significant contributor to the carbon black market. The material has got broader acceptance in the construction industry due to its unique properties. Asia region is expected to invest $8 to $9 trillion to build infrastructure to sustain the economy’s growth. This massive investment will also increase the demand for carbon black.
A few players dominate the carbon black market. Some of the leading companies with a large market share are Birla, Asahi, Phillips, and Dominion. These large manufacturers have a comprehensive product portfolio and have invested heavily in R&D of carbon black.
These are some of the critical carbon black market trends you should know. Studying the current trends gives you a clear idea of the market and future business opportunities. Suppose you need detailed information about the market. In that case, you can search for market reports that can give you details of existing and future trends.