Carbon black demand expected to rise: Cancarb parent
By Medicine Hat News on April 23, 2021.
Cancarb parent-company Tokai Carbon expects strong growth in demand for carbon black in North America due to a “rapid rebound” in global tire production, the Tokyo-based materials manufacturer stated in its financial year-end note to shareholders. The company completed a 20-per cent capacity expansion at Medicine Hat facility in 2020, and states that U.S. plants acquired when it took over Texas-refiner Sid Richardson have run at full capacity since late last year. That follows rebounds in new car sales and recovering demand for new tires almost one year after the COVID-19 pandemic began. “We project a return to average annual growth of 2 to 3 per cent per year from 2021 onward,” the letter states. “However, there are limits to expansion in the U.S., Tokai Carbon included, so we expect the balance between carbon black supply and demand in the U.S. to tighten as tire production increases.” Globally, the company forecasts tire production to rise by 20 per cent above two billion units produced per year currently by 2029. Tokai reported a 30% decline in carbon black sales in 2020. Overall four product sectors operating income fell close to 90%. In response the company cut dividends by one-third. 7-6
