In Q3 2024, the Carbon Black market in the APAC region experienced growth, driven by rising demand from sectors like tire manufacturing and fluctuating raw material prices, resulting in a volatile market environment. Conversely, Europe faced sustained weak demand, which caused a decrease in Carbon Black prices. The contrasting trends highlight the differing market conditions, with APAC benefiting from stronger demand, while Europe struggled with persistent demand challenges. These regional variations emphasize the influence of sector-specific needs and raw material price fluctuations on market dynamics during this period.
In Q4 2024, Carbon Black prices in China rose moderately as companies started procuring for the holiday season. In contrast, markets in Germany and India saw a decline in prices, driven by weak demand, destocking activities, and unfavourable weather conditions that hindered manufacturing. These regional discrepancies highlight the contrasting market dynamics, with China benefiting from pre-holiday procurement, while Germany and India faced challenges that pressured prices downward. Factors like seasonal demand and external conditions played a significant role in shaping the price trends across these regions during the quarter.
By Q1 2025, Carbon Black prices in India stabilized at around USD 1290 per metric ton (FOB Mundra for N220), supported by increased demand, particularly from the tire manufacturing sector. However, markets in China and Europe continued to struggle with weak trends, driven by sluggish demand. Despite the growth in India, the ongoing challenges in other regions highlight the varying market conditions across global markets, with demand fluctuations playing a key role in shaping the price dynamics.
Looking ahead to Q2 2025, the Carbon Black market is expected to see positive growth globally, driven by increased demand, especially from the automotive sector. The rising need for Carbon Black in tire manufacturing and other automotive applications is expected to support this growth. However, fluctuating raw material costs, particularly for coal tar, will remain a significant factor impacting pricing and market stability. These price variations in key feedstocks will create a volatile environment, requiring manufacturers and buyers to carefully monitor market trends and adjust their strategies accordingly to navigate potential challenges.