South America Carbon Black Market - Segmented by Type, Application and Geography - Growth, Trends and Forecast (2018 - 2023)

The South America carbon black market is expected to witness a CAGR of approximately 2.28% during the forecast period (2018 - 2023). The growing automotive production in Brazil is the major driving factor of the carbon black market in South America.

Growing Demand from Tire Industry

Carbon black is required majorly for tires of the automotive vehicles. It is used as a filler and a strength reinforcing agent. Lately, there has been an increasing demand for carbon black from the automotive sector. This is majorly due to the increase in the total automotive production in Brazil. In 2017, the total automotive production in the country witnessed an increase of 25.20%. Additionally, the increasing demand for lightweight vehicles and electronic vehicles is expected to further boost the demand for carbon black from the tire industry during the forecast period. However, the declining automotive production in Argentina has impacted the demand for carbon black to a certain extent.

Furnace Black is expected to have the Largest Share

In 2017, the furnace black segment accounted for nearly 95% of the market and is also expected to have the fastest growth during the forecast period. It is the most common type of carbon black production in South America. Most of the manufacturers in the region use furnace black to manufacture carbon black. Furnace black provides reinforcement & superior resilience, tear-strength, and conductivity. Hence, it is used as a rubber reinforcing agent in tires and other rubber goods. It is widely used in industrial rubber production as a filler, and as a pigment in plastics, inks, and paints & coatings. Furthermore, the growing use of furnace black as a pigment in the coating and polymers industries is expected to further augment the growth of the market.

Brazil Dominates the Market

Brazil is the expected to have the largest demand for carbon black in the region during the forecast period. This is majorly due to the increasing automotive production in the country. Furthermore, the increasing investments in the country’s automotive sector are expected to boost the demand for carbon black. For instance, in October 2017 Mercedes-Benz announced that the company will be investing USD 750 million in their truck and bus factories. The company is also planning on making investments during 2018 - 2022 in order to renovate their factories in São Bernardo do Campo (São Paulo) and Juiz de Fora (Minas Gerais), and also to develop new products and technology. This is expected to boost the demand for carbon black from the automotive sector in Brazil during the forecast period.

Key Developments in the Market

October 2017: Cabot Corporation decided to purchase Tech Blend, a leading manufacturers of black masterbatches, for USD 64 million.

Major Players: Birla Carbon, Cabot Corporation, Orion Engineered Carbon, Sid Richardson Carbon and Energy Ltd, and Tokai Carbon Co., among others.

Reason to Purchase this Report

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