Specialty Silicas Market

• Publication date: May 2011

US demand to rise 5.8% annually through 2015 US demand for specialty silicas is forecast to rise 5.8 percent annually to $1.7 billion in 2015. Market volume will also climb at a healthy clip, rebounding from the declines of the recessionimpacted 2005-2010 period. As the economy recovers, growth in manufacturing output will return. This, in turn, will drive demand for specialty silicas, which find considerable use in the production ...

US demand to rise 5.8% annually through 2015

US demand for specialty silicas is forecast to rise 5.8 percent annually to $1.7 billion in 2015. Market volume will also climb at a healthy clip, rebounding from the declines of the recessionimpacted 2005-2010 period. As the economy recovers, growth in manufacturing output will return. This, in turn, will drive demand for specialty silicas, which find considerable use in the production of manufactured goods. Market expansion will be fueled by strong growth in the large precipitated silica segment, as well as above-average gains for fumed silica. Advances for both product types will largely stem from renewed growth in the large rubber market, as production levels in key sectors, such as motor vehicles and industrial machinery, increase robustly.

Fumed silica to be fastest growing product segment

Specialty silicas -- which are also known as synthetic amorphous silicas or synthetically produced noncrystalline silicon dioxide -- include precipitated, fumed, gel, sol and fused types. Demand for specific silica products is closely tied to the outlook for key end-use industries. For example, demand for fumed silica -- which is expected to be the fastestgrowing segment of the specialty silica market through 2015 -- will be fueled by a strong rebound in nontire rubber consumption following the significant declines experienced between 2005 and 2010, when poor economic conditions restricted domestic motor vehicle production and manufacturing activity, thus reducing demand for rubber components used in motor vehicles, machinery and other equipment. Precipitated silica represents the leading type of specialty silica in both volume and value terms. This silica type is expected to advance roughly in line with the overall market through 2015, promoted by above-average gains in the large rubber sector. In particular, advances will be supported by the growing utilization of this product in silicareinforced low rolling-resistance tires, which offer greater fuel efficiency than conventional tires. Precipitated silica also finds use in a number of other markets. Among these, plastics and chemicals are projected to offer the best opportunities for growth. Overall market value will benefit from the continued development of more expensive and higher performance precipitated silica products.

Rubber market to reclaim position as leading outlet

Among specialty silica markets, the rubber market is forecast to expand at the most rapid pace through 2015, when it will reclaim its position as the leading outlet for specialty silicas in dollar terms. This market can be divided into tire and nontire applications, with the best growth prospects expected for the nontire segment. This segment -- which includes the production of silicone rubber, industrial rubber products and footwear -- is expected to rise at a double-digit annual pace from a depressed 2010 base. Advances will be fueled by increased US rubber consumption, as domestic production of motor vehicles and other manufactured goods improves considerably. In the tire segment, precipitated silica will increasingly find use in low rolling-resistance tires, demand for which will be promoted by efforts on the part of vehicle manufacturers to improve fuel efficiency in order to comply with increasingly stringent governmental regulations, as well as to satisfy consumer demand for improved gas mileage.

Study coverage

This new industry study, Specialty Silicas, presents historical demand data (2000, 2005 and 2010) plus forecasts for 2015 and 2020 by product type and market. This study also considers market environment factors, details industry structure, discusses competitive variables, evaluates company market share and profiles 29 industry competitors including Cabot, Evonik Industries and PPG Industries.

Resin And Rubber Industry in the United States

TABLE OF CONTENTS

INTRODUCTION viii

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Macroeconomic Outlook 5
Manufacturing Outlook 8
Historical Market Trends 11
Pricing & Product Mix 14
Technology 16
World Demand 18
Foreign Trade 20
Imports 21
Exports 23

III. PRODUCTS 26

General 26
Precipitated Silica 30
Supply & Demand 31
Markets 33
Capacity & Producers 37
Fumed Silica 41
Supply & Demand 42
Markets 43
Capacity & Producers 46
Silica Gel 49
Supply & Demand 51
Markets 53
Capacity & Producers 56
Silica Sol 59
Supply & Demand 60
Markets 61
Capacity & Producers 64
Fused Silica 67
Supply & Demand 68
Markets 70
Capacity & Producers 71

IV. MARKETS 74

General 74
Cosmetics & Toiletries 78
Cosmetic & Toiletry Outlook 79
Silica Demand 82
Chemicals 84
Chemical Product Outlook 85
Silica Demand 88
Rubber 92
Rubber Outlook 94
Silica Demand 95
Tire Rubber 97
Nontire Rubber 101
Coatings & Inks 104
Coating & Ink Outlook 104
Silica Demand 106
Electrical & Electronic Equipment 109
Electrical & Electronic Equipment Outlook 110
Silica Demand 112
Plastics 116
Plastics Outlook 117
Silica Demand 120
Food & Beverages 124
Food & Beverage Outlook 124
Silica Demand 127
Agriculture & Animal Health 131
Agriculture Outlook 132
Silica Demand 136
Paper & Textiles 139
Paper & Textile Outlook 140
Silica Demand 142
Metals & Refractories 146
Metal & Refractory Outlook 147
Silica Demand 149
Other 152
Adhesives & Sealants 154
Packaging 155
Insulation 157
Water Treatment 158

V. INDUSTRY STRUCTURE 159

General 159
Market Share 161
Acquisitions & Divestitures 166
Competitive Strategies 167
Cooperative Agreements 169
Manufacturing 172
Marketing & Distribution 173
Company Profiles 175
Akzo Nobel NV 176
AZ Electronic Materials Sarl 178
Bayer AG 179
Cabot Corporation 181
Cabot Microelectronics Corporation 183
C-E Minerals, see Imerys
Ceradyne Incorporated 185
DA NanoMaterials, see DuPont (EI) de Nemours
Denki Kagaku Kogyo Kabushiki Kaisha 187
DENTSPLY International Incorporated 188
DuPont (EI) de Nemours 190
Evonik Industries AG 192
Fuji Silysia Chemical Limited 195
Glassven CA 196
Grace (WR) & Company 198
Grupo IQE, see Industrias Quimicas del Ebro
Huber (JM) Corporation 200
Imerys SA 202
Industrias Quimicas del Ebro SA 203
IQESIL, see Industrias Quimicas del Ebro
Kemira Oyj 205
Merck KGaA 206
Minco, see Ceradyne
Multisorb Technologies Incorporated 208
Nalco Holding Company 209
Nissan Chemical Industries Limited 211
Orisil Limited 213
PEMCO, see Precision Electro Minerals
PPG Industries Incorporated 214
PQ Corporation 216
Precision Electro Minerals Company Incorporated 218
Qingdao Makall Group Incorporated 219
Ransom & Randolph, see DENTSPLY International
Rhodia SA 220
Tokuyama Corporation 222
Wacker Chemie AG 224
Other Companies Mentioned in the Study 227

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Macroeconomic Indicators 8
2 Manufacturers’ Shipments 11
3 Specialty Silica Market, 2000-2010 13
4 Specialty Silica Pricing 15
5 Specialty Silica Foreign Trade 21

SECTION III -- PRODUCTS

1 Specialty Silica Demand by Type 28
2 Precipitated Silica Supply & Demand 33
3 Precipitated Silica Markets 37
4 Precipitated Silica Production Capacity by Company, 2010 40
5 Fumed Silica Supply & Demand 43
6 Fumed Silica Markets 46
7 Fumed Silica Production Capacity by Company, 2010 49
8 Silica Gel Supply & Demand 52
9 Silica Gel Markets 56
10 Silica Gel Production Capacity by Company, 2010 59
11 Silica Sol Supply & Demand 61
12 Silica Sol Markets 64
13 Silica Sol Production Capacity by Company, 2010 67
14 Fused Silica Supply & Demand 69
15 Fused Silica Markets 71
16 Fused Silica Production Capacity by Company, 2010 73

SECTION IV -- MARKETS

1 Specialty Silica Demand by Market 76
2 Cosmetic & Toiletry Shipments 81
3 Cosmetic & Toiletry Market for Specialty Silicas by Type 84
4 Chemical Product Shipments 88
5 Chemical Market for Specialty Silicas by Type & Application 92
6 Rubber Consumption 95
7 Rubber Markets for Specialty Silicas by Type 97
8 Tire Rubber Market for Specialty Silicas 101
9 Nontire Rubber Market for Specialty Silicas 103
10 Coating & Ink Shipments 106
11 Coating & Ink Market for Specialty Silicas by Type 109
12 Electrical & Electronic Equipment Shipments 112
13 Electrical & Electronic Equipment Market for
Specialty Silicas by Type 116
14 Plastics Indicators 120
15 Plastics Market for Specialty Silicas by Type & Application 123
16 Food & Beverage Shipments 127
17 Food & Beverage Market for Specialty Silicas
by Type & Application 131
18 Agriculture Indicators 136
19 Agriculture & Animal Health Market for Specialty Silicas
by Type 139
20 Paper & Textile Product Shipments 142
21 Paper & Textile Market for Specialty Silicas by Type 146
22 Metal & Refractory Shipments 149
23 Metal & Refractory Market for Specialty Silicas by Type 152
24 Other Markets for Specialty Silicas by Type & Application 154

SECTION V -- INDUSTRY STRUCTURE

1 US Specialty Silica Sales by Company, 2010 160
2 Selected Cooperative Agreements 171


LIST OF CHARTS


SECTION II -- MARKET ENVIRONMENT

1 Specialty Silica Market, 2000-2010 13
2 Specialty Silica Flow Chart 17
3 Specialty Silica Imports by Source, 2010 23
4 Specialty Silica Exports by Destination, 2010 25

SECTION III -- PRODUCTS

1 Specialty Silica Demand by Type, 2010:
Volume Versus Value 29

SECTION IV -- MARKETS

1 Specialty Silica Demand by Market, 2010:
Volume Versus Value 77

SECTION V -- INDUSTRY STRUCTURE

1 US Specialty Silica Market Share by Company, 2010 162