I/EC M A R K E T O F T H E
R E P O R T M O N T H
CARBON BLACK Exports climb to all-time high, but fast pace of foreign plant construction foreshadows smaller U. S. part in foreign markets.
Major U. S. Producers of Carbon Black
Godfrey L Cabot
Columbian Carbon
United Carbon
Phillips Petroleum
Continental Carbon
J. M. Huber Corp.
mie Carbon
Sid Richardson Carbon Co.
U. S. exports of carbon black should total about 550 million pounds in 1960, an all-time high. This represents more than one quarter of all domestic shipments. But any enthusiasm in the industry about export volume is dampened by the rapid pace of plant construction in all corners of the globe. Between now and 1963, annual carbon black capacity outside of the U. S. is due to increase 500 million pounds. A lot of the new overseas capacity will be absorbed by fast growing world markets for carbon black. U. S. exports, however, will certainly suffer, and may never top the record they will set this year. Domestic producers, which once enjoyed a near monopoly in carbon black, have effectively backstopped themselves against the inevitable. Godfrey Cabot, Columbian Carbon, United Carbon, Phillips Petroleum, and Continental Carbon are all involved in the overseas expansion binge, either through outright ownership of foreign plants or through joint ventures with local interests. Overseas markets for carbon black are growing at about double the U. S. rate. Still, the domestic scene is cheerful. Shipments from U. S. producers (including exports) should come to about 2.1 million pounds this year, a 3% gain over 1959. And 1959 itself was a record year, ending a three-year slump and marking the first time that shipments topped 2 billion pounds. The strength of the carbon black business in this country shows up clearly in a list of current construction. Sid Richardson Carbon Co. plans to build a 50 million pound-peryear plant at Big Springs, Tex.; Continental Carbon is adding 30 million pounds of capacity at Bakersfield, Calif.; J. M. Huber is upping output at Baytown, Tex., from 60 million pounds per year to 100 million; Phillips Petroleum has a new 60 million-pound plant at Orange, Tex. Installed capacity in the U. S. is about 2.5 billion pounds per year, will rise to around 2.7 billion pounds by 1963 to meet growing demand. World-wide, excluding communist countries, annual carbon black capacity is now about 3.3 billion pounds, and will jump to roughly 4 billion pounds by 1963. The world market for carbon black is expected to be about 3 billion pounds in 1963, 20% higher than this year. On this basis, there will be excess capacity, but not enough to cause serious problems except in some local situations. The industry is comfortable with some extra capacity—this makes it easier to meet peak demands without carrying large inventories. The industry is noted for its stable prices even though competition between producers is brisk. Average price of the VOL. 52, NO. 11 ·
NOVEMBER 1960
25 A
I/EC
Outlets for Carbon Black
Rubber Industry, 95%
Inks, Paints, Miscellaneous, 5 %
MARKET
REPORT
OF THE M O N T H
large-volume blacks, now about 7 cents per pound, is only about a half-cent higher than in 1950. About 95% of carbon black sales go into rubber as reinforcing agents or fillers. Printing inks, paints, and specialties account for the remainder of output. The future of carbon black, therefore, is almost wholly dependent on the rubber business. And rubber is doing well, especially in foreign countries that are solving transportation shortages with more trucks, buses, and cars. Until recently, the United Kingdom and Germany were the only major carbon black producing countries outside of the U. S. The building boom now in progress will establish plants in many countries that have relied on imports in the past. Italy, for instance, imported 53 million pounds of carbon black from the U. S. last year, but by 1962 will have 123 million pounds of capacity within its own borders. In a long list of countries The Netherlands, India, Mexico, Argentina, Australia, South Africa, Pakistan—plants are going up that will be able to produce enough to equal or exceed the amount of material normally imported from this country. A continuing trend in the industry is the switch from natural gas to liquid hydrocarbons as a raw material source. Prior to World War II 80% of all carbon blacks were produced by the channel process—incomplete combustion of natural gas in small flames which impinge on cooled channel irons. Furnace blacks, made by continuous partial combustion of either gas or oil, came into the picture because they work better in synthetic rubber than channel blacks. The furnace process now accounts for over 80% of output. And over 70% of furnace blacks stem from liquid hydrocarbons rather than natural gas. The reason for the preponderance of blacks made from oil is, of course, due to the rising price of gas in relation to oil. Eventually, the furnace process may take over completely, except for some special uses which require channel blacks. In general, the finer the particle size of a black, the greater value it will have in reinforcing. As the rubber industry designs tires to last longer and carry heavier loads, the demand for higher quality grades of blacks should increase.
Shipments from U. S. Producers Millions of Pounds
Millions of Pounds 2100 1900 1700
1500
1951
52 53 54 55 56 57
Source: Bureau o f Mines
20 A
'Estimated
INDUSTRIAL AND ENGINEERING CHEMISTRY
58
59 1960
1300 1951
52
53
54
55
56
57
59 1960
