Carbon Black Prices

Carbon Black Prices December 2023

The carbon black prices in the United States for Q4 2023 reached 2085 USD/MT in December. The market saw upward pressure on prices, largely due to depleted inventories following the Auto Union strikes. Although energy prices eased and consumer costs declined, limited private vehicular movement and supply challenges impacted demand. The tire market saw a short-lived boost, but overall demand remained restricted towards year-end.

The price trend for carbon black in China for Q4 2023, reached 1415 USD/MT in December. The market remained sluggish primarily due to oversupply and low requirements from the private sector. The downturn in the real estate sector and limited export opportunities further constrained market activity. While demand for electric vehicles picked up, the subdued domestic market and lower export volumes kept prices low, prompting destocking across multiple industries.

The carbon black pricing in the Middle East for Q4 2023 reached 1450 USD/MT in December. The product prices remained stable due to oversupply, and weak demand dominated the market. European import restrictions increased supply, while the UAE's tire market faced reduced demand due to seasonality. Logistical challenges and falling crude prices eased cost pressures, but demand in downstream industries, particularly for tires, stayed weak.

The price trend for carbon black in India for Q4 2023, reached 1185 USD/MT in December. India's market showed resilience in the early part of the quarter, supported by steady demand. However, cold weather and subdued rural consumption dampened market activity toward the end of the quarter. High inflation rates and destocking in the Asia-Pacific region added pressure on the Indian market, leading to a slowdown in demand and lower inventory levels.

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 the current price but also provides insights into carbon black historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into carbon black 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 European market experienced mixed trends in quarter four of 2023. While prices softened initially due to imports from Russia and the Middle East, they rebounded in December. The replacement tire market struggled under spiked fuel and electricity costs, but government subsidies for electric vehicles (EVs) kept new vehicle demand strong. Declining mortgage prices provided some consumer relief, which marginally supported replacement tire demand. Energy prices remained elevated but below pandemic highs, contributing to market instability. By mid-December, suppliers began destocking as EU states planned to cut subsidies for sustainable modifications. Despite weak demand for electric vehicles, speculation around future supply challenges triggered a late-quarter price recovery.

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

North America Carbon Black Price

In Q4 2023, the North American carbon black market displayed a bullish trend, driven by rising customer spending and declining mortgage rates. The tire industry, particularly after the resolution of the U.S. Auto Union strikes, saw depleted stocks, further propelling the price rise. Energy and crude oil rates were pioneered to ease due to strong EU winter reserves, which led to a decline in customer electricity and gasoline costs. However, the continued high mortgage rates restricted the movement of private vehicles, which in turn kept the product demand low. By the close of the quarter, a surge in travel activities bolstered replacement tire demand, although supply challenges and a slowdown in EV demand dampened the market sentiment.

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

Middle East and Africa Carbon Black Price

In the Middle East and Africa, the market remained largely constant during quarter four of 2023, with moderate supply levels and low demand. The oversupply, driven by reduced European imports, kept prices steady despite logistical challenges from hostile weather and elevated water levels. Seasonality and transportation problems caused a distressed demand in the UAE market, which resulted in a large accumulation of inventory. Russian export restrictions in Europe further increased supply in the region, resulting in lower prices. Additionally, the rubber and tire sectors in the UAE faced weaker demand, impacted by affordability concerns. Throughout the quarter, a cooling in crude and natural gas prices alleviated cost pressures but failed to stimulate significant market growth.

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

Asia Pacific Carbon Black Price

The APAC region exhibited a bearish trend throughout Q4 2023, primarily due to surplus and low demand from China. The downturn in China’s real estate sector contributed to subdued private consumption, and export requirements for carbon black-faced limitations owing to rising protectionism. Markets like South Korea and Japan continued steady with increasing export demand for electric vehicles, while high inflation and interest rates across the region hampered domestic demand. By the end of the quarter, disruptions in trade caused by geopolitical tensions further impacted the market, lowering new orders from international buyers and escalating freight costs.

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.