Based on the supply-side reform, the growth of carbon black capacity has slowed down, and limited capacity is scheduled to be expanded. But, the demand for carbon black increases year by year. It is predicted the demand for carbon black may increase to 5,170kt.
1. Promising Demand for Carbon Black
Around 70% of carbon black is used in producing tires. The total demand volume for carbon black is expected to be 5,100kt in 2017.
2. Increasing Tire Capacity
Tire industry is still the major consumption of carbon black, so its capacity change plays a key role in the demand for carbon black.
Most newly-expanded tire capacity is located in Shandong and Jiangsu, which will boost the demand for carbon black in Shandong and Jiangsu.
3. “One Belt and One Road” Drives the Development of Carbon Black Industry
The “Maritime Silk Road” connects coastal cities in China and South Asia. A lot of investments in infrastructure will boost the demand for vehicles. Hence, the demand for tires, especially for all-steel tires, will be high.
On the whole, the Chinese carbon black industry will develop healthily.
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