carbon black feedstock markets - platts.com · carbon black feedstock markets vincent j. guercio...

Carbon Black Feedstock

Markets

Vincent J. Guercio

CTC International

2011 Platts Bunker & Residual Fuel Oil Conference

June 2011 - Houston

I n t r o d u c t i o n

Carbon Black Oil - CBO

Carbon Black Feedstock - CBFS

----------------------------

Slurry Oil

Decant Oil

Clarified Oil

T o p i c s

Carbon Black - Use & Production

CBFS Types

Slurry CBFS Requirements

World CBFS Usage

US Feedstock Market

Reinforces & extends rubber

20-30 Grades produced

70% Tires - Tread & carcass

25 lb Passenger tire - 6 lb CB

22% Rubber goods - Hose, belt, etc

8% Specialty - Pigment, ink, etc

Carbon Black Market

CB Capacity History by Country

China

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

11000

12000

13000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Kilo

ton

s

USA

Japan

India

Egypt

Other

Germany

Thailand

RussiaKorea

Brazil

Egypt

Other

GermanyEgypt

Other

Thailand

GermanyEgypt

Other

BrazilThailand

GermanyEgypt

Other

Korea

BrazilThailand

GermanyEgypt

Other

Korea

BrazilThailand

GermanyEgypt

Other

Russia

BrazilThailand

GermanyEgypt

Other

Russia

BrazilThailand

GermanyEgypt

Other

India

Russia

BrazilThailand

GermanyEgypt

Other

USA

India

Russia

BrazilThailand

GermanyEgypt

Other

China

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

11000

12000

13000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Kilo

ton

s

USA

India

Russia

BrazilThailand

GermanyEgypt

Other

Japan

Korea

Carbon Black Producers

World(13795 KTPY Total)

Tec

hugl

erod

OtherT

okai

Huadong

Evonik

Columbian

Cabot

CSRC

Birla

Bla

ck C

at R

ich

ard

so

n

PC

BL

Key CBO Properties

Aromaticity

Sulfur Content

Contaminants

Solvent Insolubles

Handling Properties

Heavy Aromatic Oils

used as CBFS

FCC Decant Oils - DO

Cracked Ethylene Tar - ET

Coal Tar Oils - CT

All are byproducts:

Gasoline, Petrochemicals & Steel

Slurry CBFS Requirements

BMCI 120 min

API 2 max

Specific Gravity 1.06 min

Sulfur 0.5-4.0 wt% max

Ash 0.05-0.07 wt% max

Sodium 10 wt ppm max

Potassium 1 wt ppm max

Pentane-Insolubles 7 wt% max

Water 0.2 wt% max

Viscosity SUS @ 210 F 100 sec max

Flash 180 F min

AROMATICITY

BMCI 120 min

API 2 max

Specific Gravity 1.06 min

Sulfur 0.5-4.0 wt% max

Ash 0.05-0.07 wt% max

Sodium 10 wt ppm max

Potassium 1 wt ppm max

Pentane-Insolubles 7 wt% max

Water 0.2 wt% max

Viscosity SUS @ 210 F 100 sec max

Flash 180 F min

SULFUR CONTENT

BMCI 120 min

API 2 max

Specific Gravity 1.06 min

Sulfur 0.5-4.0 wt% max

Ash 0.05-0.07 wt% max

Sodium 10 wt ppm max

Potassium 1 wt ppm max

Pentane-Insolubles 7 wt% max

Water 0.2 wt% max

Viscosity SUS @ 210 F 100 sec max

Flash 180 F min

CONTAMINANTS

BMCI 120 min

API 2 max

Specific Gravity 1.06 min

Sulfur 0.5-4.0 wt% max

Ash 0.05-0.07 wt% max

Sodium 10 wt ppm max

Potassium 1 wt ppm max

Pentane-Insolubles 7 wt% max

Water 0.2 wt% max

Viscosity SUS @ 210 F 100 sec max

Flash 180 F min

SOLVENT INSOLUBLES

BMCI 120 min

API 2 max

Specific Gravity 1.06 min

Sulfur 0.5-4.0 wt% max

Ash 0.05-0.07 wt% max

Sodium 10 wt ppm max

Potassium 1 wt ppm max

Pentane-Insolubles 7 wt% max

Water 0.2 wt% max

Viscosity SUS @ 210 F 100 sec max

Flash 180 F min

HANDLING PROPERTIES

BMCI 120 min

API 2 max

Specific Gravity 1.06 min

Sulfur 0.5-4.0 wt% max

Ash 0.05-0.07 wt% max

Sodium 10 wt ppm max

Potassium 1 wt ppm max

Pentane-Insolubles 7 wt% max

Water 0.2 wt% max

Viscosity SUS @ 210 F 100 sec max

Flash 180 F min

Local Decant

13%

Coal Tar

40%US Decant

31%

Ethylene Tar

16%

World CBFS Types

Demand

USA

Northeast

Asia

China

South Asia

Other

Americas

Europe

Rest of

World

Supply

USA

Northeast

Asia

ChinaSouth Asia

Europe

Other

Americas

Rest of

World

World CBO Supply/Demand(17 million Tons Total)

2009(17 million Tons Total)

Local Decant

2328

Coal Tar

6116

US Decant

5952

Ethylene Tar

2457

2004(14 million Tons Total)

Local Decant

2229

Coal Tar

3566

US Decant

5735Ethylene Tar

2496

World CBFS Types

USA Slurry Consumption

Neat Fuel

Exports

Blended

Fuel &

Refinery Use

NCFS

CBFS Exports

Domestic

CBFS

US CBO Demand

Domestic

Demand

Export

Demand

0

1000

2000

3000

4000

5000

6000

7000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Kilo

ton

s

CBO Export Destination

South Asia

North Asia

Europe

Americas +

Africa + ME

0

500

1000

1500

2000

2500

3000

3500

4000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Kil

oto

ns

CBO Export Source

Gulf Coast

West Coast

Great Lakes

0

500

1000

1500

2000

2500

3000

3500

4000

2000 2001 2002 2003 2004 2005 2006 2007 2007 2008 2009 2010

Kil

oto

ns

Gulf Coast CBO Exports

South Asia

North Asia

Europe

Americas

+Africa+ME

0

500

1000

1500

2000

2500

3000

3500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Kilo

ton

s

2010 U.S CB Exporters

Enjet

Glencore

Tauber

Marubeni

Chevron

Consumers of US CBO Exports

OtherTokai

Asahi/BS

Columbian

PCBL

Birla

Cabot

Evonik

U.S. CBO Export Destinations

Egypt

Other

Italy

India

Korea

Thailand

Thank you!