European processors continue to scramble for alternative carbon black supply

LONDON—European rubber processors have been urgently seeking alternative suppliers of carbon black since the onset of Russia's military attack on Ukraine.

And manufacturers who have been dependent on supplies from Russia, Belarus or Ukraine are finding that there is insufficient European-based capacity to meet requirements.

"Tire makers have turned to India and the market is now sold out," one well-placed market watcher said of the current carbon black supply situation.

"China remains (another option), but prices are double that of 'Russian' carbon black mainly driven by transport costs," he reported.

As reported in European Rubber Journal, market expert Martin von Wolfersdorff of Wolfersdorff Consulting said carbon black pricing was already firming up in March.

With about 30 percent of European carbon black coming from Russia, Belarus or Ukraine, he predicted significant disruptions to supply.

"The European carbon black market is tight, and some carbon black customers might already be on allocation by their suppliers," von Wolfersdorff reported March 23.

According to the market analyst, some volumes are being replaced with carbon blacks from India, China and Saudi Arabia.

And Chinese carbon black spot prices CIF European port are being quoted at around $2,465 per metric ton (€2,272/metric ton)—over $860 per metric ton (€800/ton) above April 2022 contract prices.