Specialty Carbon Black Market Trends

Growth Drivers

• Increasing Demand for Tires- It is estimated that the domestic demand for tires would increase by 7-9% in 2023. Most of the tires are manufactured with the help of carbon black, which is anticipated to drive the demand for tires. UV light and ozone, two substances that are known to hasten tire deterioration, are shielded from the tire's destructive effects by carbon black. Furthermore, carbon black is known to strengthen the rubber. Hence, it results in a more reliable vehicle ride for the rider. The car's driver, as a result of this, is consequently kept safer.

• New Pigment Formulation Trends- APE- and VOC-free high-performance polymeric (HPP) dispersant STEPSPERSE 61 is a brand-new formulation created for a variety of carbon blacks and organic pigments in aqueous applications by Stepan Company.

• Long Term Sustainability Initiatives - The 1% Sulfur Rotterdam Fuel Oil Index (FO 1% S FOB ROT) has been replaced as of July 1st, 2019, by the Platts North West Europe 1% Sulfur Fuel Oil Index (FO 1% S FOB NWE), according to Orion Engineered Carbons S.A., a global supplier of specialized and high-performance Carbon Black. The decision is viewed as an Orion long-term sustainability initiative.

•  Increasing Automotive Industry - In 2022, approximately 22 million automobiles were produced annually in India.

Challenges

• Scarcity of Raw Materials
• High GHG Emissions from Specialty Carbon Black Manufacturing
• Highly Consolidated Specialty Carbon Black Market