The Chinese carbon black market is marred by excessive capacity and internal price wars that put tyre makers across the world at risk. Indian producers seek to capitalise on the opportunity with reliable supply and quality.

The Asia-Pacific region dominates the global carbon black industry with an estimated 57.84 percent market share in 2023, according to a report by Fortune Business Insights. While China leads as the top exporter of carbon black from the region, India is gradually climbing the ranks with producers ramping up capacities in the wake of emerging markets such as North America.

Moreover, excessive capacity and internal price war is driving the Chinese carbon industry into a downward spiral with India vying to take its place leveraging quality and reliable supply chain.

Speaking on the tussle between the industry in these two countries on the sidelines of the 15th Asia- Pacific Carbon Black Conference, Group Country Head – Expansion Projects Asia – at Birla Carbon, Sanjeev Sood, told Tyre Trends, “China, with its surplus capacity in carbon black, often resorts to aggressive exports, especially to Southeast Asia. However, industry observers question the long-term sustainability of this model. The Chinese pricing mechanism is unsustainable. In today’s market, sustainability – whether in pricing or supply chains – is paramount. The question is not just about achieving results today but maintaining them over time.”

“The carbon black industry in China also faces credibility challenges. Instances of supply failures due to sudden price shifts have left global tyre manufacturers vulnerable. In contrast, Indian suppliers prioritise moral obligations and reliability. Our customers’ operations depend on us and we deliver, come what may,” the executive emphasised.

He also noted that China’s overcapacity has triggered intense price wars domestically, often spilling into export markets. However, Indian manufacturers remain largely insulated. Still, the broader implications of overcapacity, including margin pressures and supply chain disruptions, remain areas of concern for the global industry.

“As the sector navigates these challenges, the indispensability of carbon black remains clear, but the strategic positioning of reliable suppliers may increasingly define the competitive landscape,” he noted.

The rise in production by Indian carbon black manufacturers has drawn attention across the industry. Alluding to how this influences global markets, he noted, “It all boils down to the value you create. The value you provide to your organisation, your product and ultimately to your customers. If that core objective is met, there’s no reason to view increased production as a threat.”

“Rather than a race to expand production volumes, the competition pivots on delivering superior quality, reliability and customer-centric solutions. For players prioritising these principles, aggressive production by competitors becomes less about rivalry and more about reinforcing market dynamics that reward excellence,” he added.

Birla Carbon is also establishing two greenfield plants in the wake of opportunities. However, details of the same were withheld by the executive.

SUSTAINABLE INPUTS

Birla Carbon has recently launched the Continua 8030 carbonaceous material to further its drive to offer sustainable materials to the industry. Alluding to how it has been received by tyre makers, Sood explained, “Continua 8030 has made significant strides in addressing one of the tyre industry’s most pressing challenges, which is incorporating sustainable, recycled materials without compromising performance. The push for circularity has placed tyre companies under immense scrutiny, with demands for sustainability now extending from raw material sourcing to ethical practices.”

“Tyre companies are now laser-focused on using recycled materials and ensuring environmental accountability. Continua 8030 has emerged as a pivotal solution with many customers already integrating it into their formulations and others in advanced testing stages. It’s been highly successful so far, and we believe it has the potential to revolutionise the carbon black industry,” the executive added.

While Continua 8030 aligns with sustainability goals, it isn’t a complete substitute for virgin carbon black. “Recycled carbon black isn’t 100 percent usable in formulations. Continua 8030 must be blended, depending on preferences and processes. The product’s primary advantage lies not in performance enhancement but in supporting sustainability objectives. It’s about how much of your product you can recirculate without compromising the tyre’s overall performance. The blend percentage and usage entirely dictate its effectiveness, but the focus remains on achieving sustainability without a negative performance impact,” averred Sood.

TACKLING SPEEDBUMPS

According to the industry veteran, market volatility remains the most significant challenge for businesses today, especially in industries like carbon black, where global dynamics heavily influence supply chains and costs.

“Geopolitical upheavals, such as the ongoing Israel-Middle East crisis or unforeseen shifts in logistics costs, exemplify the unpredictable nature of the current landscape. Who could have predicted just two months ago the steep surge in shipping rates? This is the reality we face,” he observed.

The key to thriving amidst such uncertainty lies in agility and foresight. “Volatility is inevitable, but how businesses respond makes all the difference. Companies must remain nimble and adapt quickly to align with emerging challenges. The ability to pivot proactively rather than reactively is what defines success,” said Sood.

As markets continue to evolve, businesses that embrace adaptability, plan for contingencies and foster resilience will stand out, turning challenges into opportunities for growth, highlighted the executive.

When asked about potential challenges, Birla Carbon remains unfazed. “We do not anticipate challenges we cannot handle. We are prepared for whatever the future holds,” the spokesperson stated, emphasising the company’s resilience and forward-looking strategies.

FORWARD PATH

The carbon black industry is on the cusp of a significant evolution as the automotive sector’s push for sustainable materials gains momentum. However, traditional and sustainable capacities are expected to co-exist and expand to meet growing demand.

Fresh capacities will continue to emerge alongside the increasing adoption of sustainable materials. As long as actual demand grows, the need for carbon black will persist, whether it’s used in conventional applications or innovative blends tailored to specific needs,” said Sood.

A key development in Birla Carbon’s arsenal is the Asia Post-Treatment Plant, the first of its kind in the region. Previously exclusive to the company’s US operations, this advanced technology is now available in Asia, marking a significant milestone.

“This plant isn’t for conventional carbon black but caters to highly specialised applications including paints, toners and speciality blacks. It represents a leap forward in high-end speciality products and demonstrates our commitment to innovation in meeting evolving market demands,” averred Sood.

With its robust capabilities and focus on innovation, the Indian carbon black industry is well-positioned to address the dual priorities of sustainability and performance in the automotive and broader industrial sectors. But how will it fare in its race against China is a matter left to the sands of time.

Bridgestone Corporation (Bridgestone) has been selected once again to continue as a constituent of three internationally renowned environmental, social and governance (ESG) indexes: the MSCI ESG Leaders Indexes, the FTSE4Good Index Series and the Dow Jones Sustainability World Index (DJSI World).

Bridgestone has been a part of the MSCI ESG Leaders Indexes for two years in a row since 2023, the DJSI World for three years in a row since 2022 and the FTSE4Good Index Series for seven years in a row from 2018. Bridgestone's specific Mid Term Business Plan (2024-2026) has been steadily implemented, putting sustainability at the centre of its operations. The company's 2020 vision and Mid-Long Term Business Strategy served as the foundation for the plan.

According to the company statement, “Setting forth the vision of ‘Toward 2050, Bridgestone continues to provide social value and customer value as a sustainable solutions company’, Bridgestone links its business to the realisation of carbon neutrality, a circular economy and nature positivity across the entire value chain. From the ‘produce and sell’ phase and the ‘use’ of its products through to their ‘renewal’ to raw materials, Bridgestone aims to build a foundation for creating sustainability value.”

The following initiatives have contributed to Bridgestone's inclusion in these indexes:

• Contributing to a circular economy and attaining carbon neutrality by using ENLITEN technology to make tyres from recycled and renewable resources, using BCMA and switching to ‘Green & Smart’ manufacturing at Bridgestone locations to increase resource productivity and energy efficiency.
• Encouragement of nature positivity through initiatives for the sustainable use of water resources and natural rubber that are closely related to the commercial operations of the firm, including strengthening assistance for natural rubber smallholders.
• Strengthening of a thorough structure and procedure for human rights due diligence that aims to identify, mitigate, avoid and disclose human rights concerns.
• Visualisation and disclosure of the impact of social contribution actions that are in line with the global goals.

German automotive company and tyre major Continental has been added another feather to its cap with bagging the ‘Tire Manufacturer of the Year’ at this year’s Tire Technology International Awards for Innovation and Excellence at this year’s Tire Technology Expo.

With this, Continental becomes the only tyre maker to have won two concurrent awards – Tire Manufacturer of the Year and Environmental Achievement of the Year – Manufacturing. The company’s Lousado facility in Portugal was also recognised for manufacturing tyres CO2-neutrally since last year.

Edwin Goudswaard, Head of Research & Development, Continental Tires, said, "We are especially proud to be the only manufacturer to be honoured twice at the Tire Technology Awards in an extremely competitive field. Both awards highlight our strong commitment to sustainable tire development and manufacturing. In such a highly competitive market, this success demonstrates our innovative prowess and our ability to actively shape the future of the industry."

Interestingly, this also marks it the fourth time that the German company has bagged the Tire Manufacturer of the Year award. The awards took into consideration tyre makers globally and were evaluated by a jury of 27 independent industry experts.

Going forward, Continental has outlined its ambition to switch all of its tyre plants to fully carbon-neutral production processes by 2040 at the latest.

Hankook Tire & Technology (Hankook Tire) has appointed Jongseon Ahn and Sanghoon Lee as Executive Directors and new Co-CEOs, following a resolution passed at the Annual General Meeting and Board of Directors meeting held on 26 March.

Ahn will be in charge of Hankook Tire's global innovation, R&D, procurement, production and quality, while Lee will be in charge of global sales and marketing initiatives to strengthen the premium positioning of the company's unified global brand, Hankook, as well as the supply of original equipment (OE) tyres for new vehicles. In addition to the leadership nominations, shareholders approved all eight agenda items at the Annual General Meeting, including the approval of the consolidated financial accounts, partial revisions to the Articles of Incorporation and director appointments.

Ahn has extensive leadership expertise and a proven track record of advancing technology innovation in the operational holding firm, Hankook & Company. He oversaw general management and spearheaded innovative initiatives in 2021 while serving as COO of Hankook & Company and Head of ES (Energy Solution) Business Headquarters. He became the CEO in 2022 and oversaw the company's expansion of premium Absorbent Glass Mat (AGM) battery sales into important international markets, which greatly increased profitability and strengthened the company's platform for long-term success.

Lee's vast worldwide leadership experience serves as the foundation for his profound understanding of marketing and global sales strategy. He has held important regional leadership positions in China and Europe since 2018, during which time he has played a crucial role in bolstering the company's premium brand positioning internationally and continuously promoting creative business performance, both of which have greatly increased revenue. At the conclusion of last year, he was nominated as Hankook Tire's Co-CEO due to his success and leadership.

Sri Lanka-based speciality tyre manufacturer GRI (Global Rubber Industries) has won the prestigious Material Handling Industry (MHI) Innovation Award for Best Innovation in Sustainability at ProMat 2025, held in Chicago, USA. The company’s premium plus ULTIMATE GREEN XT tyre has been honoured as the world’s most sustainable material handling tyre made with 93.5 percent sustainable materials.

This solid material handling tyre, which was designed and produced at GRI's state-of-the-art production facilities in Sri Lanka, combines energy-efficient production methods, environmentally friendly raw materials and outstanding performance to lessen its impact on the environment and increase productivity for companies all over the world. The award follows a thorough evaluation procedure in which the most innovative developments influencing the future of material handling were evaluated by a prestigious panel of industry executives, technical specialists and sustainability advocates. In addition to being a success for GRI, this result demonstrates Sri Lanka's increasing influence in the global manufacturing sector and reaffirms the nation's capacity for high-quality, sustainable production.

Prabhash Subasinghe, Managing Director, GRI, said, “This award is not just a recognition for GRI – it is a moment of pride for Sri Lanka, showcasing our ability to lead in sustainable industrial solutions. The ULTIMATE GREEN XT is a Sri Lankan innovation making a difference on the global stage, reinforcing our belief that sustainability is not an option – it is a responsibility. At GRI, we always think of the next generation and strive to grow for generations to come. We dedicate this achievement to the passionate and hardworking people of Sri Lanka, whose expertise and dedication made this possible.”