Looking at the Global Carbon Black Trade Circulation from the Supply and Consumption Sides

In recent years, global carbon black production capacity has shown a sustained net growth trend, with the Asia Pacific region being the main supply area for global carbon black. Among them, China has long held the position of the world's largest carbon black supply country, occupying half of the world's carbon black production capacity; From the perspective of trade flow, the Asia Pacific region is also China's main consumer market, accounting for nearly 70% of the global demand for carbon black.

Asia Pacific is the main supplier of carbon black production capacity, with China accounting for half of the country's territory

According to Zhuochuang Information, the net growth trend of global carbon black production capacity will continue in 2023. It is predicted that the global carbon black production capacity will reach 20.71 million tons in 2023, a year-on-year increase of 2.9%; By region, the Asia Pacific region accounts for 63% of the total global carbon black production capacity, making it the main concentration of carbon black supply. Next, North America and Eastern Europe account for 11% and 10% of the total global carbon black production capacity, respectively. The increase in global carbon black production capacity in 2023 mainly comes from China and Southeast Asia, which is also due to the increase in tire production capacity in China and Southeast Asia, supporting the confidence of carbon black investors. Among the carbon black supply countries, it is predicted that China will account for 46% of the total global carbon black production capacity in 2023, firmly ranking first in the world's total carbon black production capacity. Secondly, the United States, India, a certain country in Eastern Europe, Japan, and South Korea respectively account for 11.7%, 7.2%, 6%, 5.1%, and 4.1% of the global carbon black production capacity.

In China, the abundant coal resources provide strong support for it to become the world's largest producer of carbon black. The main raw material of carbon black - high-temperature coal tar, benefits from China's abundant coal resources, giving China a unique geographical advantage in carbon black production. In addition, China has become an important member of global carbon black production, while the United States, as one of the world's major economies, is also an important base for carbon black production. Its leading carbon black production technology is renowned worldwide. Similarly, India, with its abundant natural gas and oil resources, has also become an important force in supplying the carbon black market. In recent years, Chinese carbon black enterprises have continuously introduced international advanced production equipment and technology, while increasing investment in high-quality products and environmental protection, so that they will continue to maintain their position as the world's largest carbon black supplier in the future.

The Asia Pacific region is the main consumer region of global carbon black, with China as the largest consumer country

In 2023, the total global demand for carbon black is expected to reach 11.863 million tons. Among them, the Asia Pacific region will become the world's largest carbon black consumption market, accounting for nearly 70% of total demand, followed by the European and North American markets. In China, as the largest consumer market in the Asia Pacific region, the total demand is expected to be 5.7815 million tons in 2023, accounting for 48.74% of the global total demand. In the past decade, China's massive consumer spending and continuously growing car ownership have made it the world's largest automotive market, accounting for nearly a quarter of global car sales. In addition, car sales in the US and European markets have also shown a stable growth trend. With the development of the automotive industry, the demand for rubber products such as tires is also constantly increasing, which has driven the growth of demand in the carbon black market. This has made China the world's largest producer and consumer of carbon black in the past few years. Thanks to its vast consumer market and well-established production industry chain, China is expected to continue to be the main inflow market for global carbon black in the future.

In terms of regional distribution of global tire production capacity, Asia is undoubtedly the world's largest tire production base, accounting for about 60% of the total global tire production capacity. Especially China, as a major tire production country in Asia and even the world, has a comprehensive production capacity of nearly one billion radial tires, accounting for over 40% of the global total production capacity. Following closely behind is the European region, which is the second largest tire production region in the world, accounting for approximately 16% of the total global tire production capacity. Germany, France, the United Kingdom and other countries are leading countries in tire production in Europe, making major contributions to the tire production capacity in the region. Next is North America, the third largest tire production region in the world, which accounts for approximately 13% of the total global tire production capacity. The United States is the largest tire producer in North America and plays a crucial role in the tire production capacity of the region. Finally, tire production capacity in other regions of the world is mainly concentrated in regions such as South America, Africa, and the Middle East, with a total tire production capacity of about 10% in these three regions, making them relatively concentrated regions in global tire production.

Overall, the Asia Pacific region, North America, and Eastern Europe are the main global supply markets, accounting for 63%, 11%, and 10% of the total global carbon black supply capacity, respectively. Its main source of goods flows to Asia, Europe, and North America, accounting for 61%, 16%, and 13% of the global demand for carbon black, respectively. Among them, China accounts for 46% of the total global carbon black production capacity, and the trade characteristics of Chinese goods flowing to Asia and Europe such as Thailand, Vietnam, Indonesia, Poland, India, and Japan have basically formed in 2022-2023.

In the future, Asia will remain the main supply area for global carbon black and the main flow area for carbon black goods

In the next five years, the supply and demand pattern of the global carbon black market will undergo certain changes, but Asia remains the main supply area of global carbon black and the main flow area of global carbon black goods. Among them, the supply and demand increment in Southeast Asia is more obvious. From the perspective of global goods circulation, Asia Pacific, North America, and Europe are the main regions for exporting carbon black globally, with the main source of goods still flowing to Asia, Europe, and North America. With the continuous production of new devices in the carbon black and tire industries, the supply and demand of carbon black in Asia, especially in Southeast Asia, will increase.

On the supply side, in the next five years, the total global carbon black production capacity will increase by more than 800000 tons, with the vast majority concentrated in Southeast Asia. The new production capacity in other regions is relatively limited, and the majority will remain relatively stable. Foreign funded enterprises will play a leading role in this process, while Chinese carbon black enterprises face multiple challenges in overseas factory construction, including raw material procurement, production processes, and international friction, making overseas expansion more difficult. The expansion of tire production capacity in Southeast Asia is a key factor driving carbon black enterprises to actively invest in building factories.

On the demand side, according to current statistics, there are still plans to add approximately 40-50 million semi steel tires and 7.33 million all steel tires in Southeast Asia in the next five years, which is expected to bring more than 300000 tons of demand increment to the carbon black market.