Market Trends of South America Carbon Black Industry
This section covers the major market trends shaping the South America Carbon Black Market according to our research experts:
Increasing Application for Tires and Industrial Rubber Products
- Carbon black is used in tires primarily as a filler to enhance its various characteristics such as tread wear, fuel economy, longevity, etc.
- Carbon black is mainly required in the inner liners, sidewalls, and carcasses. It has heat-dissipation capabilities when added to rubber compounds. It also improves handling, tread wear, fuel mileage, as well as provides abrasion resistance.
- Carbon black is one of the most important industrial chemicals manufactured globally. Other than tires, it is also required for various molded and extruded industrial rubber products, such as conveyor belts, gaskets, air springs, grommets, vibration isolation devices, and hoses. It provides flex strength in such products.
- Furthermore, in the rubber industry, carbon black is majorly used as a filler to achieve reinforcing effects, such as altering the modulus or tensile strength. In rubber-based adhesives, sealants, and coatings, it is used to enhance the intermolecular or cohesive forces of the product and to impart conductivity. Furthermore, in coatings, carbon black is used as a light-absorbing additive to counteract chemical degradation reactions.
- Therefore, considering the aforementioned factors, the demand for carbon black is expected to rise from the tires and industrial rubber products segment moderately during the forecast period.
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Brazil to Dominate the Market
- Brazil is among the top ten global countries for rubber production. It represents around 1.5% of the total global output, with the production of around 190 thousand metric tons. The rubber production is expected to increase with the revamped farming of rubber plantations, which is expected to provide more opportunities for the growth of domestic tire production in the country over the coming years.
- Brazil represent the largest tire producing country in the entire South American region. Brazil stood as South America's largest exporter of tires in terms of revenue.
- According to a forecast released by the São Paulo state construction union, though the construction industry is facing a down turn from the past two years, the GDP of Brazil from the construction industry grew. Construction of new hotels, coupled with extension of the existing hotels, is likely to boost commercial construction in Brazil. With the positive growth of the construction industry, the consumption of plastics and paints and coatings is expected to grow over the forecast period.
- The country's infrastructure sector is currently under flux. To overcome this, the government has recently launched a program for infrastructure worth over USD 120 billion. This infrastructure plan is solely focused on leveraging private sector logistics investment.
- The Brazilian textile industry is the fifth largest manufacturing industry in the world and is expected to increase at a healthy rate with the advancement in technologies. With the growing textile industry, the demand for carbon black from this industry is also expected to grow rapidly.
- Overall, the market for carbon black in Brazil is expected to grow at a moderate rate during the forecast period.
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