International carbon black company production halts beneficial for domestic companies

The Indian state of gujarat pollution control requirements committee issued a directive,phillips carbon black company should stop Palmer le jie factory,which capacity is 100000mt/yr.Phillips company total capacity can reach 470000mt/yr in 2012,the world's sixth.Palmer le jie factory need to make improvement to meet the requirements of the local government's environmental standards,and production time is pending.Phillips shutdown will reduce the market supplies,help to boost the boom of domestic carbon market.

Carbon black is the main filling materials,commonly used in the rubber reinforcing agent,moreover also can make black dye,used in ink,paint,etc.According to industry statistics,about 91% of the carbon black used in rubber industry,product among them about 67% carbon black used for tires,24% for other rubber products.

By the end of 2012,China's carbon black production capacity is about 5.5 million tons,accounting for about 38% of global capacity,becoming overcapacity situation.Benefit to the rubber prices continued to decline and a slow recovery of the car industry,the second half of 2012 appeared signs of global tire demand,domestic tire industry profitability and capacity improvement and is conducive to carbon black industry.In addition with improvement of environmental standards,rising of industry barriers to entry,small carbon black enterprises will gradually withdraw from the market,domestic industry leading company may usher in a broader space.

By Nicole