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China to Consume 35% Global Carbon Black by 2017 Says TechSci Research - China’s endless natural resources, inexpensive labour and lower tax regimes have resulted in global shift of manufacturing capacities in the country, strengthening China’s position as world’s largest carbon black producer and exporter
China to Consume 35% Global Carbon Black by 2017 Says TechSci Research

 

PRZOOM - /newswire/ - Noida, Uttar Pradesh, India, 2012/07/12 - China’s endless natural resources, inexpensive labour and lower tax regimes have resulted in global shift of manufacturing capacities in the country, strengthening China’s position as world’s largest carbon black producer and exporter.

   
 
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China has positioned itself as world’s largest manufacturer and supplier of carbon black in recent times. In the same way, China’s domestic carbon black market is registering first-rate growth. China is world’s largest producer of automobiles and also its chemical industry accounts for nearly 50% share of Asia’s chemical industry. Since these two industries are remarking excellent growth, this has offered an excellent platform for carbon black manufacturers in China to grow incessantly. In 2011, China had total installed capacity of more than 5 Million ton per annum with nearly 60 registered global and local carbon black manufacturers in the country. Most of these manufacturers have successfully utilized their scale of economies which will help China to maintain its leading position as the largest carbon black manufacturer even by 2017.

According to recently published report by TechSci Research “China Carbon Black Market Forecast & Opportunities, 2017” carbon black market in China is expected to grow at the compounded annual growth rate (CAGR) of nearly 6% between 2012 and 2017. “Looking at the future, it is expected that the competition in the Chinese carbon black market will intensify further as it comprises of a large number of players. There is a possible threat of backward integration by automobile manufacturers some of whom are considering diversifying into carbon black manufacturing to become cost competitive. Also, leading Chinese companies can face acquisition threats from its neighbour Indian companies who getting aggressive y-o-y.” said Karan Chechi, Research Director at TechSci Research.

“Chinese manufacturers are actively receiving huge orders from both domestic and global customers which are expected to continue by 2017. China holds world’s largest automobile and chemicals market globally. The solid growth of both automobile and chemical industries has direct correlation with the carbon black market as these two industries almost entirely control the carbon black demand. Benefitting from this positive domestic environment, China’s is expected to become world’s largest market for carbon black by 2017 accounting for nearly 35% of worldwide consumption in 2017”, added Mr. Chechi.

“Chinese companies now need to identify new market opportunities available within the domestic and international markets and invest more in technology and R&D. Chinese manufacturers have not acquired any large scale global corporation in recent times. However, most of the Chinese companies are small to midsized enterprises which may find difficulty to acquire a large global organization in the future as well. But they can initiate their global expansion through green-field investments in neighbouring countries such as Vietnam, Taiwan, Korea, and India etc which would help them to increase their global footprint and secure the future growth for a longer period of time”, said Mr. Chechi

‘China Carbon Black Market Forecast & Opportunities, 2017’ has evaluated the future growth potential of carbon black’s market and provides statistics and information on market structure, trends and opportunities. The report includes segmental market projections and demand forecasting. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in carbon black market in worldwide.

 
 
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China to Consume 35% Global Carbon Black by 2017 Says TechSci Research

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