Specimen Data Tables : Industrystat

Specimen of Market Forecast

Carbon Black

Carbon black industry has been facing a rough time with the output of the product exceeding demand. The depressed demand for tyres,  source  of over 70% of the demand for carbon black, had landed the industry into difficulties. Along with natural rubber, carbon black accounts for more than 80% of  the cost of a tyre. It imparts anti-abrasion quality  and enhances the tensile strength of rubber. Carbon black is also used in industries such as automotive parts, construction and consumer products. It has applications in printing inks, coatings, electrical cables, plastic films, pipes and sealants. It is used to manufacture dry-cell batteries, electrodes and carbon brushes.
Different grades of carbon black are produced. The automotive tyres use the N220 and N330 grades in the tread and the N550 and N660 grades in the carcass of the tyre. There are other grades in use N 234 or the N 375 which are used in radial tyres.
Carbon black's base material (120 BMCI) is produced by companies like IPCL and NOCIL. The quantities offered by them are, however, not adequate. The base material is also supplied by oil refineries (in the form of CBFS) but it is low in carbon content and high in sulphur and hence does not measure up to international specifications. The industry is, therefore, importing the base material.

Close to 50% of the global  market is currently controlled by the top three companies - Cabot Corporation, Degussa and Columbian Chemicals. The Indian market is dominated by the top three players in the industry - Phillips Carbon Black, Indian Rayon and Cabot India (a subsidiary of Cabot Corporation). Phillips Carbon Black is the largest producer  controlling  more than a third of India's production.
The industry has an installed capacity of 345,000 tonnes annually. The annual demand is estimated at about 320,000 tpa. Phillips Carbon Black is the market leader with  a market share of 36%, followed by Indian Rayon & Industries at around  28%.
The carbon black industry in India started  with the commissioning of a plant by Phillips Carbon as far back as 1962 in collaboration with Phillips Petroleum, an industry leader globally. It undertook a modernisation-cum-expansion plan and raised the installed capacity to 175,000 tpa from 133,000 tpa. In 1996-97, the company  had acquired the carbon black unit of Gujarat Carbon & Industries. Earlier Carbon & Chemicals India was also amalgamated with it  in early 1997-98.
A new entrant in the industry has been Murablack India which has managed to increase its market share to 2.5% over the years. Oriental Carbon and Chemicals, a part of the J.P. Goenka group, was established in 1978 also with the collaboration of Phillips Petroleum. The company subsequently entered into a tie-up with Sanchin Chemicals of Japan.Over-capacity is inducing producers to look for consumers outside the Indian market. And yet significant quantities are imported annually, which occur when international  prices  become  attractive. The exports also make up for sizable quantities. From Rs 195 mn in 1995-96, the exports increased to Rs 779 mn in 1999-00.
The  Cabot  of  the  USA  collaborated  with  the  Carbon Black Corporation to form Cabot India,

formerly United Carbon.  The MNC has a 60% stake in the venture. The plant at Thane in Maharashtra has  a capacity  of 35,000 tpa which is proposed to be raised to 55,000 tpa.

Carbon Black

Market Structure