The market size of carbon black in China is more than 60 billion yuan

Core data of this paper: China’s carbon black production capacity, China’s carbon black production, China’s carbon black import and export situation

1. Carbon black demand for tires accounted for more than 65%

he role of adding carbon black to rubber tire is to increase the strength of rubber and enhance the wear resistance. Without reinforcing rubber, its strength is very low, and carbon black  is a good reinforcing agent.

In 2021, China’s tire industry and carbon black industry will shift from the stage of high-speed growth to the stage of high-quality development. With the increasing constraints of resources and environment on the industry, the development of the industry is full of complexity and uncertainty, but also faces more opportunities and challenges. Carbon black is one of the important raw materials in the tire manufacturing industry, the cost of radial tires accounted for 24%, and the main use of carbon black from the tire demand accounted for more than 65%, the supply of carbon black directly affects the cost of tire production, thus affecting the profit of tire production enterprises.

2. China has nearly 9 million tons of black carbon production capacity and produces about 5.2 million tons

From 2011 to 2021, China’s new capacity is on the rise, with a compound annual growth rate of 4.04%. At present, China’s carbon black industry  is currently suffering from overcapacity, low industry profits, disorderly market competition and severe export situation. In 2021, China’s carbon black industry capacity utilization rate is 59.84%, with a capacity of 8.95 million tons. The output of carbon black in 2021 was 5.188 million tons, up 8.09% year on year.

3. China’s exports of black carbon are growing sharply, while imports are falling

From 2015 to 2021, the demand for carbon black in China fluctuated. In 2021, China imported 102,000 tons of carbon black, a year-on-year increase of 17.24%. Exports were 721,500 tons, up 8.99 percent year on year.

From January to November 2022, the total amount of carbon black exported was 757,600 tons, up 14.7% year on year. Black carbon imports totaled 83,300 tons, down 11.5 percent year on year.

4. China’s black carbon market is worth about 63 billion yuan

Based on the calculation of carbon black production and import and export, the apparent demand for carbon black in China increased from 2016 to 2019, and decreased for the first time in nearly six years in 2020. From 2016 to 2021, the compound growth rate of China’s carbon black market was 5.46%. In 2021, the market size of China’s carbon black industry was about 63 billion yuan.