India has huge demand for Carbon black market. Superior reinforcing properties make carbon black a suitable material for use in diverse applications ranging from tyres, plastics, electronic equipment to inks, dyes and coatings. The report reveals that the expansion of tyre and rubber industries in the southern region of India is boosting the demand for carbon black in the country. The shift in manufacturing base of automobiles and tyre industries is expected to be a major driver for the carbon black market over the coming years. Additionally, the use of carbon black has increased in specialty segments such as inks, conductive plastics and high-performance coatings, which has led to diversification in product range offered by key industry players. In the past, Indian carbon black industry faced stiff competition from cheaper imports coming from China, which adversely affected the sales and profit margins of domestic players. However, various duties and taxes imposed by the Indian government on these imports have provided a respite to domestic industry players in the country.
The country’s carbon black industry has been undergoing consolidation as various domestic players have been establishing joint ventures in India and abroad, thereby creating a synergy in their operations and strengthening their footprint in the market. India imports bulk of carbon black from other countries including China, Thailand and Russia to address its growing demand.
Carbon black market in India will in the next five years on account of various favourable developments in the country Majorly to reduce import, Major players have started backward integration to counter the fluctuation in prices of feedstock and volatility in crude oil prices.
Specialty carbon black is a refined form of carbon black which comprises lesser level of ash, sulphur, metals and several other contaminations. Carbon black particles are made from the four processes such as Thermal black, furnace black, acetylene black and lamp black. Carbon black comprises >95% of pure carbon with smaller amount of hydrogen, nitrogen and oxygen and it is recognized as the commercial form of solid carbon. These carbon blacks are used as supplement for the enhancement of execution of conductivity, viscosity of materials. Specialty carbon black has characteristic properties, like protection from ultraviolet rays, increases the conductivity of plastics, and intensify the visual application of several products.
Road Ahead
This Industry is volatile and have past record of high swings in price of raw material which impact the profitability of companies. The growth rate can assumed at 6-7% CAGR for next five years.
BENEFICIARIES: PHILLIP CARBON, GOA CARBON, HIMADRI SP CHEMICLAS, RAIN INDUSTRIES.
