Abstract
2007/08 have seen tightening availability and sharp price rises for activated
carbon, a market characterised by surplus capacity and stable pricing over the
previous decade. Production in China, which accounts for some 40% of both
world activated carbon capacity and exports, has fallen due to worsening
metallurgical coal shortages and the three-month closure in summer 2008 of
operations in the vicinity of the Olympic Games to reduce air pollution. The
reduced supply, imposition of 49-228% anti-dumping duties on US imports of
steam-activated carbon from China since spring 2007, elimination of VAT
rebates for Chinese exporters, currency fluctuations, and rising energy,
freight and raw material costs all exerted upward pressure on activated carbon
prices. Prices of coal-based grades have risen by up to 80% over the last 18
months, to exceed those of coconut shell-based grades for the first time.
Use of powdered activated carbon to control mercury emissions from coal-fired
power plants in North America could potentially provide the largest ever
market for activated carbon. Driven by state environmental legislation and
limitations on new power plant construction, the US market is forecast to
increase from 5,000t in 2007 to 125,000t in 2010. Growth in demand could
accelerate to 400,000t in 2015 if federal legislation requiring use of
powdered activated carbon is introduced. In traditional markets, growth in
consumption will be concentrated in water treatment applications in the USA,
to control disinfection by-products in municipal water, and in drinking and
wastewater treatment in the industrialising countries of Asia, eastern Europe,
Latin America and the Middle East.
The tight market balance for activated carbon and forecast growth rates of up
to 10%py in world demand have encouraged plans for significant new production
capacity. Projects underway or under consideration could raise capacity by
some 250,000tpy, equivalent to 25% of 2007 capacity, through 2010. Much of the
new capacity is scheduled for the USA and aimed at the mercury control market.
Norit, already the world' s largest producer of powdered activated carbon, is
expanding capacity in the USA and has recently formed a joint venture with
Prairie Mines and Royalty to construct the first activated carbon plant in
Canada. Calgon Carbon, the world?s largest granular activated carbon producer,
has a multi-stage programme to raise capacity by up to 136,000tpy powdered
material and may construct a new plant outside the USA in the longer-term. A
new entrant to the market, ADA-ES plans to build the largest plant in North
America by 2010, with capacity of up to 79,400tpy powdered material. In the
longer-term, the company may construct up to six production lines of similar
capacity in North Dakota and Louisiana.
New capacity in China is likely to be restricted to companies with captive
coal supplies. SNCIG brought the first 10,000tpy of a potential 200,000tpy
plant on-stream in mid-2008. As coconut shell-based material becomes more
competitive, new activated carbon capacity is planned in Indonesia, India and
the Philippines, some by Chinese interests. Several operations, especially in
the USA and Australia, have been proposed in the past for activated carbon
production from non-conventional raw materials. To date only one,
AgriTecSorbents' plant based on rice hull ash, has entered commercial
production. Tighter activated carbon supplies may encourage further investment
in plants processing alternative raw materials in future.
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