Russian carbon black market sees decreased demand

ERJ staff report (TP)

(OCG data)

Omsk, Russia – The decline in the production of vehicles, tires and rubber products in Russia meant a fall in carbon black demand in the first half of 2014.

According to research by Omsk Carbon Group (OCG) published in July, the Russian domestic market in H1 2014 was characterised by decreased demand compared to H1 2013.

In Q2 2014, prices in the Russian domestic market increased by 5% due to the rise of commodity prices. In the third quarter the producers expect to keep the same level of prices or increase it slightly due to the rising cost of logistics.

For the second half of 2014 a slight decrease in domestic demand is expected due to the planned suspension of the production of a number of production lines of Russian car manufacturers (AvtoVAZ, Ford, etc).

Russia’s carbon black market is represented by six manufacturers. Two

of them (Omsk Carbon Group and Yaroslavl Carbon Black) are among the 12

largest world producers and together share about 6% of world production

capacities.

Globally, Russia is third (after China and the US) in terms of production, and second (after China) in exports.

OCG added that the situation in Ukraine has not had an impact on the market.

“So far, despite the political situation around Ukraine and military activities in this country, export supplies of carbon black from Russia to Europe are continuing without any disruptions,” the company said.

“Russian producers stabilised and secured their supplies by developing alternative logistic channels through Belarusian and Russian ports – and creating stocks closer to customers.”

Related story: Omsk Carbon Group begins construction of Belarus plant.