Orion Engineered Carbons, a specialty chemicals company, reached a significant sustainability milestone, becoming the first to achieve International Sustainability and Carbon Certifications (ISCC Plus) for multiple carbon black grades made from different feedstocks at plants in two regions of the world. 

The ISCC PLUS certification involved rigorous audits of Orion’s plants and processes that confirmed the company’s compliance with high sustainability requirements. It also verified the transparency and traceability of sustainable raw materials in the company’s value chain at three plants producing the concerned grades of carbon black. 

“The globally recognised certification further strengthens Orion’s position as the leader in our industry for developing sustainable solutions for our tire, mechanical rubber goods and specialty customers,” said Corning Painter, Orion’s CEO. “Earning the certification is a major achievement for commercialising our portfolio of sustainable products. ISCC PLUS documents to our customers that Orion continues to progress with innovation focused on sustainability.”

The ISCC PLUS certified products include the ECORAX Circular grades produced in Borger, Texas, and Belpre, Ohio, using pyrolysis oils from end-of-life tyres. Also covered is ECORAX Nature 200, produced in Jaslo, Poland, and based on bio-circular feedstocks.

Significantly, the certified products are similar to conventional grades and are “drop-ins” that require minimal reformulation in the complex rubber compounds used by our major tire manufacturing customers.

“No other company is making multiple grades of sustainable carbon black with different feedstocks at multiple plants across the world,” Painter added. “Introducing a broad range of products that can be used in highly demanding tire applications using such materials is a critical step to enable the transition to a circular economy for tyres.”

A decade ago, Orion was the first major producer to develop and commercialise carbon black made from renewable feedstocks, such as industrial-grade vegetable oils or other oils derived from waste and residues of biological origin from agriculture or forestry.

Orion is also the only carbon black producer in the BlackCycle initiative, an EU-funded project focused on developing the production of circular carbon black.

“Our customers have shown a tremendous amount of interest in our sustainable products,” said Pedro Riveros, senior vice president for global rubber carbon black and general manager for the Americas. “Several companies have made very public statements about achieving fully sustainable raw materials by 2050, or earlier. Since rubber and carbon black are the largest raw materials in rubber compounds, replacing conventional carbon blacks with our sustainable products will largely contribute to the achievement of these commitments.”

Carbon black makes up about 30 percent of a typical tyre by weight. The material reinforces tires, making treads more resistant to tearing, cutting, abrasion and other wear. Carbon black also plays an important role in creating tires with lower rolling resistance, which leads to increased fuel efficiency. It also enables engineers to fine-tune performance and protects tires from the damaging effects of UV light.

The ISCC PLUS certification is granted by the ISCC Association, based in Cologne, Germany, and promotes the sustainable production of biomass, circular and bio-based materials and renewables.

Nouryon, a leading supplier of organic peroxides and a developer of organic peroxide solutions, has formally announced the completion of capacity expansion of its organic peroxides manufacturing facility in Ningbo, China.

The company's production capacity for Perkadox 14 and Trigonox 101 organic peroxide products, which are crucial components for altering polymer characteristics and crosslinking rubbers and thermoplastics, has increased to 6,000 tonnes each as a result of this capacity expansion. Furthermore, by improving the qualities of recycled polypropylene (R-PP), these solutions can also allow consumers to employ recycled polymers in applications that were previously exclusive to virgin plastics.

Alain Rynwalt, Senior Vice President – Performance Materials, Nouryon, said, “Nouryon is a world leader in essential ingredients for the polymer industry and this expansion highlights our dedication to supporting our customers’ growth across the entire polymer cycle. Customer interest in improving the properties of recycled polypropylene continues to rise, in line with increased consumer awareness and more stringent regulations.”

Sobers Sethi, Senior Vice President – Emerging Markets and China, Nouryon, said, “Asia Pacific is a key region for Nouryon and our most recent expansion in China strengthens our supply position even more in this growing region. Our customers rely on our existing network of manufacturing facilities and innovative technologies, and we are pleased to build more capacity to meet growing customer demand around the world.”

Trinseo, a speciality materials solutions provider, has signed agreements to supply its polycarbonate technology license as well as all proprietary polycarbonate production equipment in Stade, Germany to Deepak Chem Tech Ltd, a wholly owned subsidiary of Deepak Nitrite Limited, a diversified chemical intermediates company based in Vadodara, Gujarat, India.

The combined deals are worth USD 52.5 million. Subject to significant milestones, the business anticipates receiving around USD 9 million by the end of 2024 and an additional USD 21 million in the first part of 2025. The firm has made the decision to leave Stade, Germany, with this disposal of the production assets.

Frank Bozich, President and Chief Executive Officer, Trinseo, said, “While Trinseo recently announced its decision to exit virgin polycarbonate production, our polycarbonate technology is highly valued and the manufacturing equipment in Stade, Germany, can be utilised in India by Deepak. These are the initial steps of a strategic, collaborative partnership with Deepak, as we explore additional opportunities to leverage our technology portfolio and expand in higher-growth areas such as India.”

China's butadiene exports have experienced significant growth in recent years, particularly in 2021 and 2024. According to Sublime China Information (SCI), this surge is primarily driven by supply constraints in key regions, including the US and Southeast Asia.

Export Volume and Price Trends

In 2021, China's butadiene exports reached a historic high due to a supply gap in the US market. According to SCI, this trend continued in 2024 as reduced deep-sea cargo shipments and production challenges in Southeast Asia further tightened global supplies. From January to September 2024, China's total butadiene exports surged by 111 percent year-over-year to approximately 120.8 kilo tonnes.

The average export price of butadiene has fluctuated over the past five years. In 2023, weak demand in South Korea and competition from deep-sea cargoes led to a significant decline in export prices. However, in 2024, supply shortages from key regions drove prices to a five-year high. As of September 2024, the average export price reached USD 1,391 per metric ton, a 35 percent month-over-month increase, added SCI.

Export Destinations and Regional Dynamics

The majority of China's butadiene exports are directed to South Korea and Taiwan. In 2024, South Korea accounted for 74 percent of total exports, a significant increase from the previous year. This surge was driven by factors such as limited domestic supply and increased demand for spot butadiene.

While China's butadiene exports have been strong, the long-term potential for significant growth in deep-sea exports remains limited due to established supply chains and regional demand dynamics. Most of China's exports are currently concentrated in Northeast Asia, with limited opportunities for expansion into other regions.

Future Outlook

SCI added that 2025 China's butadiene supply is expected to be relatively sufficient, and export volumes may increase further. However, the sustained growth of exports will depend on various factors, including downstream demand in key markets, the availability of deep-sea cargoes, and the development of new production capacities in other regions.

Despite these uncertainties, China's butadiene industry is well-positioned to capitalize on global supply-demand imbalances and continue to play a significant role in the global market.

Cabot Corporation, a global speciality chemicals and performance materials company, has announced through an official statement that it will raise prices globally for carbon black products sold by its speciality carbons business. The price rise will be global and will come into effect for all shipments on or after 1 December 2024, or as contracts allow.

The company claims that the price rise is necessary owing to the impact of inflation on labour, maintenance and other production activities, as well as supply chain-related expenditures. The price increase will vary depending on the product and region.

The statement further elaborates that these price adjustments will help the company remain a dependable, long-term provider of high-quality products and services to its consumers. Cabot also underlined its commitment to guaranteeing supply security and the best service standards for its clients, as well as providing technological and process improvements and moving forward with its environmental goals.