DRAFT Tire sector to drive US carbon black market

Burnaby, Canada – The carbon black market in the US is forecast to grow at a CAGR of 4.5 percent during 2015-20, according to recently published report from TechSci Research – a global management consulting firm with offices in Canada, UK and India.

The study, titled “United States Carbon Black Market Forecast & Opportunities, 2020", identifies factors driving the market as including a positive US business environment, the increase in number of tire plants and rising demand for carbon black from industries such as rubber goods, paints and coatings.

The US is the second largest producer and consumer of carbon black, globally and its domestic carbon black industry is highly consolidated. Leading players such as Sid Richardson, Cabot Corp., Orion Engineered Carbons, Continental Carbon and Birla Carbon have a combined market share of over 90 percent.

The US tire industry is currently in expansion mode in response to the growing tire demand in North America. The sector is therefore, said the report, set to increase its dominance within the country's carbon black market over the next five years.

Ongoing recovery of the automobile and construction sectors is anticipated to further demand for industrial rubber in the coming years, the study added.

"The US carbon black market is expected to witness continuing growth over the next five years on account of various planned expansions of tire manufacturing facilities by major tire players operating in the country, said Karan Chechi, research director at TechSci Researchx.

However, stringent regulations on carbon black manufacturing industry is making tire majors to consider going for aggressive capacity expansions in Asian countries," Chechi added.