Tokai Carbon sees Q1 carbon black business boost

TOKYO—Japan-based supplier Tokai Carbon has seen its carbon black business lifted in the first quarter of 2023, due mainly to strong global demand.

Tokai's carbon black unit posted an 89-percent year-on-year increase in operating income to $41 million, on 27-percent higher sales of $270 million.

While volumes were slightly down compared to the year before, price adjustments and the effects of the weak yen helped push up the results, the company said May 19.

While operating income was affected by investments to meet U.S. environmental standards, the business unit "recovered significantly by capturing strong U.S. demand."

Tokai's carbon black operations also were running at full capacity at facilities in Japan and Thailand, in response to strong global automotive and tire production.

According to Tokai, demand for tires remains "firm," and inventory adjustments by some tire makers had not impacted volumes.

The first-quarter gains build on Tokai's strong performance in 2022, as increased demand in replacement tires more than offset a slowdown in vehicle production.

Last year, the carbon black business reported a 40-percent increase in operating income to $93 million on 39-percent higher sales of $1.05 billion.