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There is a continuing long-term trend toward concentration and consolidation among suppliers of carbon black. Petroleum companies have exited the business and it is now dominated by chemical companies for whom carbon black is a core product. All major producers are global in the scope of their operations. The three largest producers—Cabot Corporation, Degussa AG and Columbian Chemicals Company (which is a subsidiary of Phelps Dodge Corporation and is currently up for sale)—are global manufacturers and marketers of carbon black. As of late 2004, they had approximately 40% of the estimated world capacity of 9.0 million metric tons. The three next-largest carbon black producers are Sid Richardson Carbon Co., China Synthetic Rubber Corp. (which acquired Continental Carbon Company in 1995) and Tokai Carbon Co. These three companies account for another 10% of world capacity. All six of these companies license their technology worldwide and thus represent 55–60% of total world estimated capacity.
In spite of the ongoing consolidation trend, globalization of production and markets is causing capacity reductions in all major producing regions. The leading producers are participating in this globalization by reducing capacities in developed countries and expanding (generally via partnership with local companies) in developing areas, especially in Asia and South America. The result of these trends is a slow reduction in the share of the market accounted for by the leading producers.
The following pie chart shows consumption of carbon black in the major regions. Consumption amounted to almost 4 million metric tons in these regions in 2004.
Long-term growth in carbon black consumption will closely parallel that of the rubber industry at about 2% per year. Given the somewhat depressed market in 2004, worldwide five-year growth is expected to be 2.3% per year. Variations around this growth line will depend on overall economic activity, especially the cost of energy.
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