Carbon Black Price Trend

Carbon Black Prices December 2023

In the last month of Q4 2023, the prices for carbon black in the United States showcased a bullish trend, reaching 2085 USD/MT. This is due to factors such as heightened consumer spending, decreasing mortgage rates, carbon black shortage, and the rising replacement tire market.

The price of carbon black in China witnessed a subdued trend with the price reaching 1415 USD/MT in December 2023, due to oversupply and weaker demand from end-use industries. The export market also experienced lower price rates due to decreased export volumes and protectionism.

In the Middle East, carbon black prices witnessed stability throughout the last quarter of 2023, reaching 1450 USD/MT in December. The market experienced continued subdued demand because of oversupply and the European Union’s (EU) limit on imports. Moreover, the market was also affected by adverse weather and high water levels, which led to complications in logistics activities and seasonal and transportation challenges in the UAE.

Carbon black prices in India witnessed a mixed trajectory in Q4 of 2023. In October and November, the price remained stable, while it started decreasing in December due to cold weather and diminished rural demand, reaching 1185 USD/MT towards the end of the year.

Carbon Black Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Carbon Black Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” offers an in-depth analysis of carbon black pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of carbon black at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of carbon black price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing carbon black price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Carbon Black Market Analysis

The global carbon black market size reached USD 17.2 Billion in 2023. By 2032, IMARC Group expects the market to reach USD 24.2 Billion, at a projected CAGR of 3.80% during 2023-2032.

• As the demand for vehicles and replacement tires is expanding, the market for carbon black is also expected to grow. For instance, India's market for two-wheelers and passenger automobiles accounted for 76% and 17.4%, respectively. In addition, the EV industry is expected to rise fivefold to USD1,318 billion by 2028. Consequently, the market for tires is expected to reach USD 256.8 Billion by 2032, projecting a growth rate of 4.9% between 2024 and 2032.
• The surge in demand for rubber products in manufacturing, construction, and machinery industries that utilize carbon black is driving market expansion. The rubber industry is projected to grow at a rate of 4.5% annually and will reach a value of 68.2 billion by 2032. Furthermore, the growing construction activities in emerging economies due to escalating foreign direct investment (FDI) and economic growth are fueling the market expansion. For instance, it is estimated that the construction industry in India will reach USD 1.47 trillion by 2025. On a regional level, the Asia Pacific region continues to remain the key construction and real estate market, accounting for nearly 40% of the global industry's output value by 2030.
• Carbon black is also utilized in packaging, automotive components, and consumer electronics. The consumer packaging market for electronics is anticipated to reach USD53.1 billion by 2032, indicating a growth rate (CAGR) of 9.95% during 2024-2032. Also, India's domestic electronic production increased at a rate of 13% from USD49 billion in FY17 to USD101 billion in FY23, and the country's electronics exports are expected to reach USD120 billion by FY26, which increases the need for efficient packaging solutions.
• The demand for carbon black in inks and coatings because of its deep black color and conductive properties, is also playing a vital role in expanding the market growth. According to the World Paint & Coatings Industry Association, China dominated the regional market for paints and coatings in 2022, with a growth rate of 5.8%. In 2022, China's total sales of paints and coatings crossed USD 45 billion. It has the largest market, with a 78% share in East Asia. Meanwhile, the North American market value reached USD 33.92 billion, and Europe’s market was valued at USD 42.37 billion.
• Moreover, the carbon black demand is amplified due to its use in the energy sector for renewable energy and energy storage solutions. According to the International Energy Agency (IEA), over USD 2.8 trillion was invested in energy in 2023, and more than USD 1.7 trillion was invested in clean energy, including renewable power, storage, low-emission fuels, efficiency improvements, and end-use renewables. Also, India saw the highest year-on-year growth in renewable energy additions of 9.83% in 2022. The installed solar energy capacity increased by 30 times in the last nine years and stands at 75.57 GW as of February 2024.
• The aerospace and defense sectors are adding to the market expansion of carbon black for composites and coatings production. In the Union Budget of India for the years 2023 and 2024, the budget for modernization and infrastructure development of the defense services was increased to INR 1,62,600 Cr, showing a rise of 6.7% over 2022 and 2023. The industry received INR 5.94 Lakh Cr in Budget 2023-24, a jump of 13% from the previous year. This trend provides a steady demand for carbon black. Also, the Indian aerospace & defense (A&D) market is anticipated to reach USD 70 billion by 2030, boosting the demand for carbon black in the near future.
• Carbon black is also becoming popular in the textile and apparel industry because of its black color and ultraviolet (UV) protection. In 2022, China showed a 2.53% increase in its exports of textiles and apparel, reaching a total value of USD 323 billion. Over the year, China's exports in textiles, apparel, and clothing accessories amounted to USD 323.344 billion, showing a modest growth of 2.53%. Also, India holds a 4% share of the total trade in textiles and apparel. The domestic apparel and textile industry contributes an average of 2.3 % to the country's GDP, 13% to industrial production and 12% to exports. In June 2023, the Government of India (GOI) approved R&D projects worth USD 7.4 million in the textile sector. Huge funds were released in schemes, such as Rs. 900 crore (USD 109.99 million) for the Amended Technology Upgradation Fund Scheme (ATUFS) in the 2023-24 budget to encourage more private equity investments and provide employment.

Carbon Black News

The report covers the latest developments, updates, and trends impacting the global carbon black market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in carbon black production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the carbon black price trend.

Latest developments in the carbon black industry:

• In February 2023, Balkrishna Industries Ltd (BKT) intensified its carbon black production activities and expanded its capacity by almost 20%. BKT aims at an annual tire production of 600,000 metric tons (MT) and envisages achieving a turnover of 2 billion dollars in three years.
• In April 2023, Phillips Carbon Black Ltd. (PCBL) announced that it has commissioned a new facility in Tamil Nadu, India worth USD 96 million or INR 800 crores. The plant will add 63 thousand tonnes of carbon black production capacity along with 24-Megawatt green energy after completion of its first phase. The company also mentioned that the facility will start the second stage of the 147 thousand tonnes per annum project in the same year.
• In March 2023, Tokai Carbon Co., Ltd. signed a strategic partnership with Sekisui Chemical Co., Ltd. for the real-world application of the Carbon Capture and Utilization (CCU) technology, which converts carbon dioxide (CO2) in exhaust gas to carbon monoxide (CO) using chemical looping reaction technology. It will further convert CO to carbon for manufacturing carbon products. The process will result in a reduced amount of CO2 generated from the carbon manufacturing process and a higher conversion efficiency by the two-step conversion method (CO2→CO→Carbon) compared to the direct conversion method (CO2→Carbon).

Product Description

Carbon black refers to a form of paracrystalline carbon that consists of fine particles with an amorphous structure. It is produced by the incomplete combustion of heavy petroleum products such as tar, coal tar, ethylene cracking tar, and vegetable oils. Carbon black is known for its intense black color, and exhibits unique properties, such as high tensile strength, resistance to abrasion and wear, electrical conductivity, and the ability to absorb ultraviolet (UV) light and heat. It is available in several types, including furnace, channel, thermal, and acetylene black, each differing in production process and properties such as particle size, structure, and surface area.

It is commonly used in tire manufacturing, mechanical rubber goods, inks, coatings, plastics, and as a UV stabilizer. Moreover, carbon black is utilized in electrodes, batteries, paint formulations, carbon paper, and as a conductive agent in a wide range of electronic applications. It offers numerous benefits, such as enhanced longevity and performance of products, improved safety features, and increased resistance to physical and chemical degradation. Additionally, it provides economic advantages by providing cost-effective solutions for reinforcing materials, improving the efficiency of production processes, and contributing to the durability and color depth of pigments in various applications.

Regional Coverage

The report provides a detailed analysis of the carbon black market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the carbon black price trend.

Global Carbon Black Price

The report offers a holistic view of the global carbon black pricing trends in the form of carbon black price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price of carbon black but also provides insights into historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed carbon black demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Carbon Black Price

The prices for carbon black in the European region encountered a mixed trajectory in the last quarter of 2023. In October and November, the product price witnessed a decline due to lower demand for downstream industries, such as replacement tires and high fuel and energy costs. However, in December, the market experienced an upward swing as mortgage rates declined drastically. In addition, the growing demand for replacement tires and the substantial decline in energy prices during the last month of the year contributed to the market growth.

This analysis can be extended to include detailed carbon black price information for a comprehensive list of countries.

North America Carbon Black Price

In North America, the carbon black prices witnessed an increasing trend owing to falling mortgage prices and increasing consumer spending. The market encountered a hike in price in October due to rising demand for deliveries of past orders that were stuck due to US Auto Union strikes. Along with this, the energy, crude oil, electricity, and consumer gasoline prices started decreasing in November and December, favoring the market growth. However, the end of December saw a decline in price trends due to supply constrictions and low demand for electric vehicles (EVs).

Specific carbon black historical data within the United States and Canada can also be provided.

Middle East and Africa Carbon Black Price

In the last quarter of 2023, the Middle East and Africa (MEA) region showcased a constant subdued price trend for carbon black. This is due to oversupply of the product and low demand from end-use industries. Along with this, the falling demand for tires in the UAE and disruptions in logistics activities contributed to the downward trend.

In addition to region-wise data, information on carbon black prices for countries can also be provided.

Asia Pacific Carbon Black Price

Carbon black pricing in the Asia Pacific region experienced a bearish trend owing to increased product supply and weak demand from end-use industries, like tire replacements. Moreover, the declining scope of exports due to heightened protectionism and the low volume of exports are also impacting the price trend. Along with this, rising interest rates and inflation in the food and energy sector are contributing to the falling prices.

This carbon black price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Carbon Black Price

The analysis of carbon black prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of carbon black pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting carbon black price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The carbon black price charts ensure our clients remain at the forefront of the industry.