CHEMICAL PROFILE Carbon black

29 May 2006 00:00  [Source: ICB]

CHEMICAL PROFILE - Carbon Black

USES

Carbon black is used mainly as a reinforcing filler for rubber, which accounts for more than 90% of demand. Tyres accounted for 68% of total carbon black volumes in 2005, while non-tyre rubber goods, primarily mechanical rubber goods, accounted for 24% of demand. The remainder is taken by special blacks, which includes all carbon blacks used in non-rubber applications. The largest non-rubber use is as a colorant and performance additive for plastics, followed by inks and paints

SUPPLY/DEMAND

Global demand grew by 4% in 2005 to 8.9m tonne and capacity utilisation was strong at nearly 91% of nameplate (about 98% of effective capacity). Europe accounted for 25% of world demand in 2005, equal to 2.2m tonne. Demand in European Union (EU) countries grew 2.1% in 2005, although production fell 6% based on higher imports. Suppliers have been rationalising capacity in the EU in recent years, and this trend continued in 2005 when Columbian Chemicals closed a line in the UK. One bright spot is Poland, where demand grew 9%/year over the last decade.

Russia, the world’s fourth-largest producer, has emerged as the world’s largest volume exporter. Omsktechuglerod bought Volgograd Carbon Black from Amtel in January, and this, plus expansions in 2004 and 2005, puts it in control of about half of Russian capacity.

PRICING

As of the first quarter of 2006, prices in the EU averaged €0.82/kg. Prices may range from the mid-€0.70s/kg for standard carcass grades to the mid-€0.80s/kg for tread grades. Despite persistently high feedstock costs and a move to more formula-based contracts, price increases are being stymied by both the particulars of formula pricing and continued cost-cutting efforts by tyre companies. These trends have pressured profit margins, despite high use rates and strong demand.

TECHNOLOGY

Carbon black is derived from the incomplete combustion of petroleum feedstocks, mainly decant oil obtained from fluid catalytic cracking of gasoils to produce gasoline; ethylene tar or ethylene cracker residue from the steam cracking of naphtha/gasoil; and raw coal tar oil, creosote and anthracene oil from coal coking.

The furnace black process dominates, accounting for 98% of global production, because it offers higher efficiency and precise control over the combustion parameters. Thermal black and acetylene black account for most of the remainder.

HEALTH AND SAFETY 

Carbon black is a very fine, black, odourless powder. Pure material can only be ignited with difficulty. It is considered to be a possible human carcinogen and mutagen.

OUTLOOK

Producers continue to shift capacity from high cost regions such as North America and the EU, toward emerging markets, particularly Brazil, China, India, Russia and Thailand, as they follow their major customers. Major expansions onstream in 2006 include Cabot, Tokai Carbon and Degussa in China, and Cabot, Degussa and Columbian in Brazil. The industry will require at least 11.5m tonne/year of nameplate capacity by end 2010, an increase of 1.6m tonne/year from the end of 2005. Based on projected growth of 3.9%/year, global demand is forecast to reach 10.8m tonne in 2010.

 

EUROPEAN CARBON BLACK CAPACITY ’000 TONNE/YEAR
Company	Location	Capacity
Cabot	Ellesmere Port, UK	70
	Port Jerome and ?Berre L’Etang, France	200
	Ravenna, Italy	90
	Rotterdam, Netherlands	85
	Valasske Mezirici, Czech Republic	100
Columbian Chemicals	Hanover, Germany	50
	San Martino di Trecate, Italy	80
	Santander, Spain	60
	Tiszaujvaros, Hungary	65
Degussa	Ambes, France	45
	Jaslo, Poland	40
	Kalscheuren, Germany	125
	Malmö, Sweden	40
	Ravenna, Italy	75
	Rotterdam, Netherlands	80
	Sines, Portugal	35
Deutsche ?Gasrusswerke*	Dortmund, Germany	116
Nizhnekamsk Carbon Black Plant	Nizhnekamsk, Russia	100
Omsktechuglerod	Omsk, Russia	240
	Volgograd, Russia	100
Yaroslavl ?Technichesky Uglerod	Yaroslavl, Russia	180
Other Producers**		284
Total European capacity	2335
* Consortium majority-owned by Degussa
** Severgazprom, Tuimasy, Kremenchug, Stakhanov & Petrokemija d.d. Kutina
Source: Notch Consulting

Data from Carbon Black World Data Book 2006 by Notch Consulting

E-mail: info@notchconsulting.comProfile 

 

 

 

 

 

Get an entire year’s worth of chemical profiles
The chemical profiles published in ICIS Chemical Business/ECN during 2005 (plus some extras) are now available on CD. For more details or to order e-mail: elaine.burridge@icis.com

By: Elaine Burridge
+44 20 8652 3214

< previous article(VIDEO - ICIS news Asia Lunchtime Bulletin 16 October 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly