European carbon black market worth €1180 million

London - The European market for carbon black is worth approximately €1179 million in 2006, growing to just under €2000 million by 2013. This represents a volume of 2.05 million tonnes in 2006, growing to 2500 million tonnes in 2013. The data comes form a new report into the market from Frost & Sullivan researcher, Mahesh Kumar.

Kumar was speaking during an internet-based seminar yesterday. He said the average price of carbon black in Europe has risen from €452 / tonne in 2003 to €575 in 2006 and is expected to reach €635 by 2008.

Kumar said that roughly 18.5 percent of the European volume is imported from places such as Russia and Egypt. Most of the demostic production is supplied by the three large suppliers, Cabot, Degussa and Columbian, but the imports tend to come from smaller companies. The three global majors are also leading the way toward long-term pricing contracts, said Kumar, citing the improved ability to plan supply and demand that such contracts afford. The smaller companies, he said, tend to sell primarily on price, but with the lower price comes a lower level of service.