India & China Fuelling Increased Carbon Black Demand

According to the US market research organisation the Freedonia Group, worldwide demand for carbon black is forecast to rise by 4.2 per cent per annum, reaching an annual consumption of 11 million tonnes in 2011. Consumption is predicted to particularly grow in the Asia-Pacific region, thanks to the continuing expansion of China and India’s automotive and tyre industries. These two countries also saw the largest increases in new carbon black capacity between 2001 and 2006. In contrast, Freedonia states that it expects demand in developed regions to “post below-average gains through 2011, with the large US and Japanese markets holding particularly weak prospects.”

Two-thirds of this anticipated demand will come from the tyre industry, which is expected to account for 7.1 million tonnes by 2011. And with little construction of new carbon black production facilities, utilisation rates in developed markets is predicted to remain at 95 per cent or higher.