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Carbon Black Market Growth to Remain Steady due to Sustained Demand from Key End-user Industries - New analysis from Frost & Sullivan, European Markets for Carbon Black, reveals that these markets earned revenues of €1,178.8 million in 2006 and estimates this to reach €1,938.0 million in 2013
Carbon Black Market Growth to Remain Steady due to Sustained Demand from Key End-user Industries

 

PRZOOM - /newswire/ - London, United Kingdom, 2007/08/02 - New analysis from Frost & Sullivan, European Markets for Carbon Black, reveals that these markets earned revenues of €1,178.8 million in 2006 and estimates this to reach €1,938.0 million in 2013.

   
 
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Carbon black manufacturers in Europe are gearing up to meet one of their biggest challenges as key end-user industries of this material increasingly shift their production facilities from western Europe to the comparatively low-cost central and eastern Europe (CEE) region. The task of transporting carbon black from existing manufacturing plants in western Europe to end users’ facilities in eastern Europe is both expensive and uneconomical, creating enormous difficulties for manufacturers.

“Carbon black manufacturers are feeling increasing pressure to maintain a presence in these regions, and this is driving some of them to invest in the CEE regions to continue supplying to existing key clients while attracting new business,” remarks Frost & Sullivan Senior Research Analyst Mahesh Kumar S. “While this may be feasible for larger and well-established participants, smaller companies will find it difficult to compete under such conditions.”

New analysis from Frost & Sullivan (chemicals.frost.com), European Markets for Carbon Black, reveals that these markets earned revenues of €1,178.8 million in 2006 and estimates this to reach €1,938.0 million in 2013.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the latest analysis of European Markets for Carbon Black, then send an email to Vanessa Quezada, Corporate Communications, at vanessa.quezada[.]frost.com with your full name, company name, title, telephone number and email address. An overview will be sent to you via email upon receipt of the above information.

Shifting to low-cost regions or investing in new facilities could give manufacturers a strong advantage in terms of proximity to key markets, helping them target existing and emerging markets. Such a move could also provide logistical benefits in terms of enabling them to identify new markets to cater to in the future.

While shifting to low-cost regions may bring short term benefits, carbon black manufacturers are likely to continue to depend on western European countries for the majority of their business. However, stable demand from end-user industries, especially tyre manufacturers, will continue to sustain market growth. This segment is the largest consumer of carbon black, accounting for almost 65 percent of the total European market.

“Steady demand from key end-user industries continues to provide sustainable business options for active carbon black manufacturers,” says Kumar. “Growth in automobile demand and the subsequent increase in tyre manufacturing provide reasonable scope for increase in volume consumption, while speciality applications are likely to yield higher profit margins.”

However, rising prices of crude oil derivatives present a major challenge since carbon black production is highly dependent on these raw materials. Increasing prices have not only affected the distribution chain, but has also eaten into manufacturers’ potential for profits, obliging them to adopt cost-cutting strategies to sustain business.

“Investment in new technology, minimizing distribution costs and early identification of key specialty application markets can help carbon black manufacturers compete at sustainable levels,” concludes Kumar. “Reducing dependence on a few end users by widening their product portfolios may also provide an advantage over competitors.”

European Markets for Carbon Black, part of the Chemicals and Materials Growth Partnership Service program, provides an overview of market dynamics and revenues, along with a complete analysis of key market drivers, restraints and trends faced in the United Kingdom, Germany, France, Italy, Benelux, Spain and Scandinavia. This research service also offers strategic recommendations to address the main challenges facing the market. Interviews with the press are available.

About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics and demographics.

 
 
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Carbon Black Market Growth to Remain Steady due to Sustained Demand from Key End-user Industries

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