Carbon Black market faces turbulence due to the impact of the coronavirus epidemic in China
The Carbon black supply chain is not affected yet. There is enough feedstock available locally and due to the slow automotive industry, with lower demands, carbon black suppliers are not using full production capacities.
Nevertheless China is an important source for many raw materials. There are several scenarios on how this situation can develop but taking the reaction of the Chinese government into consideration, together with the reports on the virus spread, the Chinese manufacturing economy is definately facing untertainty.
In raw materials or chemicals the impact would be felt across the complete value chain, from key basic raw materials to numerous chemicals having applications for a large number of end-markets.
It is difficult to predict the final impact of the coronavirus because everything depends on how the epidemic will extend, the time frame for manufacturer shutdowns, the restriction on logistics etc. Especially as China is the worldwide largest consumer of carbon black and the biggest producer at the same time.
Pentacarbon GmbH does not expect any difficulties for the carbon black availibility for its customers in the nearest future. However unfortunately the shortage of other raw materials can influence demands because some of the carbon black consumers will not be able to keep their production running.