Published on Monday, September 16, 2013
Carbon Black — Description, Market Prospects, Industry History
Industry Snapshot
Carbon black is essentially an oil by-product used to strengthen rubber. It is made by shooting a hot mist of oil particles into a flame, a costly process that has limited the number of competitors in the industry. Carbon black is a general name for various trade name products such as acetylene black, attracted black, channel black, flame black, furnace black, lamp black and thermal black.
In 2000, U.S. carbon black shipments were worth more than $1 billion, and carbon black sold at prices between 28 and 46 cents per pound, depending on the grade. The vast majority of carbon black produced in the United States in the late 1990s was consumed by rubber and tire manufacturing companies.
Background and Development
The Cabot family was involved in carbon black production from the industry's outset. In 1882, Godfrey Cabot built a carbon black plant in Buffalo Mills, Pennsylvania. After World War I, it was discovered that carbon black had properties for reinforcing rubber products, a discovery that fueled the industry's growth. In 1920, the rubber industry consumed only 40 percent of the carbon black produced; today it is the largest market for carbon black.
Current Conditions
Carbon black prices rose in the late 1990s as demand for the commodity outstripped supply, fueled by the automotive boom and the growing popularity of SUVs. In 1999, rising crude oil prices and a surge of cheaper import tires from Korea and Brazil impacted the market. Carbon black industry shipments grew from $949 million in 1999 to $1.07 billion in 2000.
Industry Leaders
The Boston-based Cabot Corporation was the world's largest producer of carbon black in 1998, producing some 995 million pounds. Columbian Chemicals Co. of Atlanta, Georgia, was the second-largest producer. Degussa's Carbon Black Division was another major player.
Research and Technology
Degussa AG researched the effects of carbon black concerning workplace exposure and found it safe, following a report from the International Agency for Research on Cancer (IARC) indicating carbon black could cause tumors in rats.