China’s silica (white carbon black) industry after rapid expansion over the preceding years has seen overcapacity and intensified competition among enterprises, combined with depressed demand from downstream sectors such as tyre and shoemaking.
A study by Reportlinker says that China’s silica capacity and output growth has been slow since 2013, with an around 50% capacity utilization of the industry. In 2015, the capacity and output rose 2.80% and 1.46% year on year to about 2,243 kilotons and 1,184 kilotons, respectively.
Under the general trend of green tyre development, the highly dispersible silica market in China has huge potential for development. Currently, Jiangxi Blackcat Carbon Black Inc., Ltd that is primarily focused on carbon black plans an 80 kt/a highly dispersible silica project in Jining, Shandong province, and Yuan Xiang Chemical Co., Ltd. plans to build a 100 kt/a green tyre-dedicated highly dispersible silica production line in the next two to three years.
Moreover, foreign companies are also bullish on green tyre’s huge demand for silica. Solvay started its 80 kt/a highly dispersible silica project in Gunsan, S. Korea in April 2015, followed by an 85 kt/a highly dispersible silica project located in Poland in July, thus expanding the company’s capacity to 465 kilotons. And Evonik Industries AG’s highly dispersible silica project in Americana, Brazil is under construction, too.