While at the Carbon Black 2009 Perspective in Asia Pacific conference (see post below), Notch Consulting announced a major new addition to its report lineup: The Contact Patch, a quarterly report on carbon black pricing, supply and demand, and industry developments. The first issue of the report was published this month, and future issues will appear quarterly.

The new report is included at no charge with a subscription to Notch’s annual report, the Carbon Black World Data Book, but the quarterly report may also be purchased separately, on either an annual or single issue basis. Contact Notch at info AT notchconsulting.com for details and subscription rates.

The report includes two components:

Pricing Report: Provides quarterly and monthly contract prices for major rubber grades for

• the United States (N110, N234, N330, N339, N550 – prices in US$),
• the European Union (N234, N326, N330, N339, N550- prices in €),
• Brazil (N234, N330, N339, N550 – prices in US$); and
• Monthly spot prices for China (N220, N234, N326, N330, N550 – prices in RMB)

Supply and Demand Update: Provides year-to-date figures based on the latest quarterly data and full-year forecasts for the current year, with a comparison to the previous year’s performance during the same period. Each issue also includes revised forecasts. Data cover all major countries as well as regional and global totals, and include carbon black capacity, utilization, production, and apparent consumption. The report also includes capacity developments, status of pending projects, and industry news.

Carbon Black 2009 Perspective in Asia Pacific was held last week in Bangkok, and Notch Consulting had the honor of delivering one of the key-note addresses. The paper was entitled “Global Economic Recession: Effect on the Carbon Black Industry.” Mr. Anil Kumar of PVTI India organized the conference along with a group of executives from leading carbon black companies in the region. The location was enchanting, the agenda well organized, and the proceedings highly informative. It was great to see old friends and make a few new ones.

The mood among attendees could be described as cautiously optimistic. There is a feeling that the worst of this punishing recession is in the past (with the trough probably occurring in the first or second quarter of 2009, depending on the region), and the hope that the regional and global markets will return to growth in 2010. However, there is an awareness that the road ahead may be rocky. There was much discussion of the import tariffs that the United States imposed on Chinese tires earlier this year, and what effect the tariffs would have not only on Chinese passenger tire production but also on those countries most likely to pick up market share at China’s expense.

After curtailing expansion activity beginning last fall, suppliers are again moving forward with new projects, and Notch heard details of several new projects planned for coming years. The industry’s newest producer, Himadri Chemicals in India, had a major presence at the conference. They were joined by nearly 200 other attendees from leading carbon black suppliers as well as equipment providers, feedstock suppliers, governmental organizations (including the China Carbon Black Institute), and consultants. All in all, a great trip.

Below: Entrance to Dusit Thani Hotel, site of the conference

Below: Detail near entrance of Wat Phra Kaew temple

Below: Detail of statue from Wat Pho temple

Below: Rumor has it that some attendees even indulged in the ancient art of Thai Fish Massage

Michelin has released its October 2009 and year-to-date figures for tire sales, and the figures offer a significantly more positive performance in some key sectors, though difficulties remain. In original equipment passenger car and light truck tire markets, October replacement sales were up in all three of Michelin’s reported regions compared to October 2008, with Europe up 6.4% (of which Europe excluding CIS was up 10.4%), North America up 6.9%, and China up 11.4%. However, October’s original equipment PC/LT tire sales were down 0.9% in Europe and 8.4% in North America compared to October 2008, though China showed strong growth of 75.2%. Given the difficulties of the first nine months of the year, YTD PC/LT sales are still down for both the OE and replacement segments in Europe and North America, though China’s market is up 52.7% in OE and up 14.4% in replacement YTD.

Radial truck tires also posted stronger results in October, at least on the replacement side. Replacement truck tire sales increased 0.4% in Europe including CIS, 16.8% in Brazil, 12.7% in Japan, and 12.1% in China. Among Michelin’s reported regions, only the North American market saw declines in truck tire replacement sales in October, which totaled 3.1%. However, original equipment radial truck tires continued to show steep declines across all regions in October 2009 compared to October 2008, with the steepest percentage declines (60.5%) in Europe including CIS.

Reflecting the deep and prolonged downturn in this segment, truck tire year-to-date figures were down nearly across the board in both the OE and replacement segments. The lone exception was China’s replacement sales, which were up 0.5%.

The full results are here.

Our friends at Cancarb report the successful REACH registration of all of the company’s Thermax and Carbocolor thermal carbon black products. The registration was carried out by the Global Energy Investments S.a.r.L., a representative, and was confirmed by the European Chemical Agency (ECHA) on November 13, 2009, well ahead of the deadline of November 30, 2010.

The full press release is here.

Notch Consulting this month published the first issue of the Silica Market Update, a new, twice-yearly report updating conditions in the global precipitated silica market. The 31-page report includes 17 tables that provide detailed estimates of precipitated silica demand by quarter for 2008 and 2009, as well as forecasts for full year 2009, 2010, and 2015. Data are provided at the world and regional levels, as well as for major countries. The report also provides current precipitated silica pricing levels, status updates on 19 recent and pending projects related to precipitated silica production capacity, and a ranking of global precipitated silica capacity by company as of September 2009. The next issue of the Silica Market Update will be published in March 2010. For subscription rates and options, please contact Notch Consulting at info @ notchconsulting.com.

On Friday, Cabot officially announced the commissioning of 150,000 metric tons of manufacturing capacity at its carbon black facility in Tianjin, China, bringing the plant’s annual production capacity to nearly 300,000 metric tons. The manufacturing facility is a project of Cabot Chemical (Tianjin) Co., Ltd., an equity joint venture between Cabot (China) Limited, and Shanghai Coking Chemical Company, a member of the Huayi Group. Cabot and Shanghai Coking have been joint venture partners since 1988.

Here is the full announcement.

Australia and New Zealand will lose their last tire manufacturing capacity based on Bridgestone Australia’s announcement on Friday that it plans to close its tire plants in Adelaide, Australia and Christchurch, New Zealand. Goodyear shut its tire plant in Somerton, Australia in June, leaving Bridgestone as the only producer in the region. Bridgestone Australia, a unit of Japan’s Bridgestone Corporation, said that, despite cost-cutting efforts, tire production at these plants was not viable because of international competitive forces. The closures will take effect at the New Zealand manufacturing plant by the end of 2009 and at the Australian facility no later than 30th April 2010. Bridgestone Australia will retain its headquarters in Adelaide, continuing its sales, distribution, retail and other business activities throughout Australia and New Zealand.

Here is the full announcement with additional details.

Goodyear has announced that it plans to close its plant in Spartanburg, South Carolina by the end of the year. The plant, which employs about 90 people, produces retread material for commercial truck and aircraft tires. According to a Goodyear statement, the production will be incorporated into other Goodyear facilities in the US.

From European Rubber Journal (subscription required) comes word that the US Standards body, ASTM, has updated ASTM D2414 to D2414 – 09a. Standard Test Method for Carbon Black—Oil Absorption Number (OAN). The oil absorption number of a carbon black is related to the processing and vulcanizate properties of rubber compounds containing the carbon black.

Here is the listing.

Carbolytic Materials Co. L.L.C. has announced that its tire recycling plant in Maryville, Missouri has opened. The plant recycles tire scrap to produce a carbon black alternative called ApexCM™ that the company says is suitable for commercial use as a lower-cost, carbon black replacement in applications such as hoses, gaskets, belting, roofing materials, and plastic piping, among other products.

This blog previously wrote about the Carbolytic Materials plant here.

In October 2008, the company received $12.4 million in financing from the Missouri New Markets Development program, which enabled the company to build the new manufacturing facility in rural Missouri. The plant employs 30.

The plant has a capacity of more than 15,000 tons of used tires annually. According to the company, each ton of carbon black replacement it produces represents 380 recycled tires, 760 gallons of oil saved and 3,800 pounds of carbon dioxide emissions kept out of the atmosphere.

Here is the press release.