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There is a continuing long-term trend toward concentration and consolidation among suppliers of carbon black. Petroleum companies have exited the business, which is now dominated by chemical companies for whom carbon black is a core product. All major producers are global in the scope of their operations. The four largest producers are Cabot Corporation, Evonik Industries (formerly Degussa AG), Columbian Chemicals, and China Synthetic Rubber Corp.
The leading application for carbon black is as a reinforcing agent in the production of rubber goods, accounting for more than 90% of total carbon black consumption. In 2007 use in tires accounted for 72% of world consumption, with other rubber goods (hoses, belts, etc.) accounting for an additional 20%; consumption for nonrubber goods (plastics, inks, paints, etc.) accounted for the remaining 8% of world consumption. While specialty carbon blacks account for only 8% of the total market in tonnage, they command a significantly higher selling price than commodity furnace black, and thus will be the focus of future research and development activities.
The growth of carbon black is closely tied to the automotive industry and the production of tires. With the global automobile industry moving east to China, India and Eastern Europe, the tire industry has followed, and with it the carbon black producers. (The availability of natural rubber in Southeast Asia is also a factor in the tire industry’s investment pattern.) As stringent environmental laws are forcing the closure of some older carbon black capacity in developed regions, much of the future investment is taking place in developing economies.
The following pie chart shows world consumption of carbon black:
The price of crude oil has an overriding influence on carbon black markets by affecting such factors as the cost of carbon black, type of vehicles sold and total miles driven, and even tire design (e.g., high performance tires, super-abrasion-resistant tread stock and the “green” tire). A major issue facing the carbon black industry is the cost of carbon black feedstocks, which is tied to the price of oil.
The feedstocks for carbon black production are generally viscous aromatic hydrocarbons consisting of branched polynuclear aromatics with smaller quantities of paraffinic and unsaturated chemicals. These oils are often by-products of refinery and petrochemical operations and have the lowest energy of cracking, providing the highest yields.
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