Demand for carbon black is expanding in overseas markets, as increasing oil prices push up prices of the specialty chemical here in North America.

Buyers are reporting higher prices for carbon black in Purchasingdata.com's latest survey. After starting the year at 76¢/lb, carbon black prices have steadily increased to their latest price of 88¢/lb in November. Thirteen percent of buyers polled in November said they saw price increases for carbon black, up from 5% the month before.

Earlier this year, a Freedonia Group report said that that demand for carbon black in the developed parts of the world will continue to post below-average gains through 2011, with the large U.S. and Japanese markets having particularly weak growth rates.

With prices on the rise and demand increasing in overseas markets, carbon black producers are looking at expansion projects in various low-cost production regions.

Cabot Corp. has been expanding in Asia. In July the company announced an expansion of its carbon black facility in Tianjin, China. In its most recent quarterly financial statement, Cabot's CEO Kenneth Burnes said, "We are pleased to have continued strong volumes in our carbon black product lines outside of North America and look forward to the added volume from our new performance products unit in China. We are watching the significant increases in oil prices closely, as we know they inevitably raise our carbon black feedstock costs and affect the performance of our business in the short term."

India's RPG Enterprises is looking to boost capacities at its Phillips Carbon Black subsidiary by establishing a 75,000 metric ton per greenfield carbon black manufacturing unit in the west Indian state of Gujarat.

Thai Carbon Black, part of India's Aditya Birla Group, plans to spend $32 million on expanding its capacity by 75,000–80,000 metric tons a year by adding a sixth production line due up in late 2008.