Carbon Black Procurement Intelligence Report 2025-2030

Carbon Black Supply Demand Overview

Key drivers of carbon black procurement report include the substantial growth in automotive production, the rising demand for high-performance tyres, and the growing electronics industry, where carbon black is used for conductive and anti-static properties. With the growth in the electric vehicle industry, the demand of high-performance tyres is expected to increase significantly globally as the weight of the overall vehicle is considerably higher of the EV as compared to an IC engine car of a similar specification. 

Regionally, Asia-Pacific is the largest consumer of carbon black, with key markets including China, India, South Korea, and Japan. North America and Europe follow, with strong demand driven by automotive and industrial applications. In terms of production, Asia-Pacific leads the carbon black procurement market report, followed by North America and Europe, with China being a major contributor to both production and consumption.

On the supply side, technological advancements in production processes, such as improved furnace black production methods, are helping to meet the growing demand for carbon black. However, challenges such as volatile raw material prices, environmental regulations, and the need for sustainable production practices may impact the dynamics of carbon black procurement report moving forward.

Carbon Black Cost Structure

The cost modeling of carbon black is influenced by multiple factors, primarily its feedstock, production process, and market demand. Carbon black is manufactured via processes like the furnace black or thermal black method, both of which rely on hydrocarbons such as oil or natural gas as raw materials. Fluctuations in crude oil and natural gas prices significantly affect feedstock costs, which constitute a major portion of the overall expense. Energy-intensive production processes further add to operating costs, making energy prices another critical component of the cost structure.

As per the carbon black procurement report, production efficiency, plant location, and economies of scale also play pivotal roles in the overall cost of the product. Plants located near feedstock sources or key markets can reduce logistical expenses, while larger facilities benefit from reduced per-unit production costs. Regulatory compliance, including environmental restrictions on emissions, adds to production costs, as companies invest in technologies to minimize environmental impact.

Downstream market demand influences profitability and pricing strategies. Industries like tyre manufacturing, which require specific carbon black grades, affect cost dynamics through their volume and quality requirements. Specialized grades, such as conductive or high-structure types, often carry higher production costs due to stricter specifications. Transportation and distribution expenses further shape the final pricing models, particularly for export markets requiring long-distance shipping.

Advancements in production technologies and more sustainable manufacturing practices could shift the cost structure by improving energy efficiency and reducing environmental compliance costs, further affecting the competitive landscape in the carbon black procurement report.

Carbon Black Pricing Trends

Carbon black pricing models are primarily driven by the cost of raw materials, such as oil, natural gas, and coal, with fluctuations in these commodities impacting production expenses. Energy costs also play a significant role, as the manufacturing process requires substantial heat to achieve high temperatures. Demand from key industries like automotive, rubber, and electronics has been rising, particularly in regions such as Asia-Pacific contributing to price increases. Additionally, supply chain disruptions, higher energy prices, and stricter environmental regulations have added pressure to prices. However, advancements in production technologies and expanded capacity in major markets are expected to provide some price stability over time.

Carbon Black Procurement Best Practices

Carbon black procurement focuses on securing a consistent supply of this vital material, used primarily in reinforcing rubber, and improving conductivity in applications like tyres, plastics, and coatings. Key technical parameters in carbon black procurement report such as particle size, surface area (BET values), structure (DBP absorption), and tint strength are critical considerations to ensure optimal performance in specific applications. As a by-product of the incomplete combustion of hydrocarbons, its pricing strategies is heavily influenced by crude oil and natural gas markets, requiring vigilant cost management and category management. Buyers prioritize sourcing from reliable producers offering grades tailored for specific uses, such as N-series grades for rubber reinforcement or specialized conductive grades for electronics. Sustainability goals are prompting interest in recycled and bio-based carbon black. Additionally, strategic sourcing, logistics optimization, and supplier diversification are essential practices to mitigate risks and ensure supply continuity.

Key Players in the Carbon Black Industry

Recent Developments in the Carbon Black Procurement Report

• In October 2024, Birla Carbon announced the launch of its first Asia Post Treatment (APT) Plant in India, located at the Patalganga unit in Maharashtra. The facility, equipped with advanced treatment technology, aims to meet the growing demand for high-performance carbon black grades in industries such as coatings and inks.
• According to the carbon black procurement report, in August 2024, Mitsubishi Chemical Group announced that it has launched studies to perform chemical recycling of end-of-life tires (ELTs) using coke ovens at its Kagawa Plant in Sakaide City, Japan. The group aims to produce sustainable carbon black from ELTs and begin marketing it by March 2026.
• According to procurement research, in June 2024, LD Carbon closed a USD 28 million Series C funding round led by Toyota's Woven Capital, with participation from Meritz Securities, Investwith, Industrial Bank of Korea, Hyundai Motor Group ZER01NE, Elohim Partners, and New Main Capital. The funds will help scale operations to recycle end-of-life tyres and vehicles into recovered carbon black and pyrolysis oil. This investment supports LD Carbon’s mission to accelerate the circular economy while offering cost and carbon savings to global customers.
• As per the carbon black procurement report, in February 2024, Nokian Tyres signed a long-term purchase agreement with a tyre recycling joint venture to support its sustainability goals. The agreement aims to increase the share of recycled and renewable raw materials in tyres to 50% by 2030. Nokian Tyres, which began using recovered carbon black in a commercial product line in 2022, will now be able to further utilize it in tyres, accelerating circularity and sustainability in the tyre industry.
• In January 2024, Orion S.A. announced the completion of air emissions control upgrades at all four of its U.S. carbon black plants, marking the largest sustainability project in the company’s history. The final project was completed at the Belpre, Ohio, plant, following similar upgrades in Borger, Texas, Ivanhoe, Louisiana, and Orange, Texas. Despite challenges such as contractor issues and supply chain disruptions, Orion finished ahead of many competitors.
• In March 2022, Cabot Corporation acquired Tokai Carbon (Tianjin) Co., Ltd. from Tokai Carbon Group, as studied by the carbon black procurement report. This acquisition enhances Cabot’s manufacturing capacity for its Battery Materials product line while continuing to serve its existing carbon black customers. The Tianjin site, with an annual production capacity of 50,000 metric tons of carbon black, will be upgraded to produce battery-grade materials to support the growth of lithium-ion batteries and vehicle electrification.