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.

Anshuman Singhania, Managing Director of JK Tyre & Industries, has been awarded the 'CEO of the Year' by the Top Rankers Management Club. The accolade was presented at the 25th National Management Summit, held in New Delhi on 23 August 2025.

The award recognises Singhania’s exceptional leadership and strategic vision, which have been pivotal in steering the company toward sustained growth and innovation. Under his guidance, JK Tyre has reinforced its position as a leader in radial tyre technology, expanded its global presence and strengthened its dedication to sustainability and customer focus.

In his acceptance speech, Singhania expressed his gratitude, stating, “I am honoured to receive this recognition from the Top Rankers Management Club. This award reflects the collective commitment of the entire JK Tyre team, whose efforts continue to drive our progress. I would like to thank my colleagues, industry partners and stakeholders for their unwavering support in our journey of growth and transformation.”

He has been a key figure in modernising the company, leveraging new technologies and expanding its presence in both domestic and international markets. The 'CEO of the Year' award, presented by the Top Rankers Management Club, celebrates leaders who demonstrate a clear vision for organisational excellence and industry transformation.

Hana Technologies, Inc. (Hana RFID) has strengthened its leadership in the Asian market with the appointment of industry veteran Jason Chang as Sales Director for Asia. Based in Shanghai, he will be responsible for managing key customer relationships and driving strategic growth throughout the region.

Chang brings a wealth of relevant experience to the role, with over 15 years in the RFID sector following a successful career in IT. His proven track record includes significant tenures at leading firms like Xerafy, Stora Enso and Beontag. His accomplishments range from pioneering the development of innovative flexible anti-metal tags to launching groundbreaking RFID-based retail solutions that gained widespread adoption in China and Europe. He has also demonstrated a strong capacity for growth, most recently achieving remarkable business expansion in the APAC market.

This appointment is a strategic milestone for Hana RFID, underscoring its commitment to supporting global customers with high-performance technology and expert, on-the-ground leadership. This move highlights Hana RFID's focused strategy on deepening its regional support and providing partners with sophisticated RAIN RFID inlay and embeddable tag solutions, backed by local expertise.

Mike Hetric, Senior Vice President – Sales & Marketing, Hana RFID, said, “The appointment of Jason Chang is a significant step forward in improving local availability and supporting our key partners in Asia. Jason’s track record in driving innovation, his deep market knowledge and his commitment to customer success will be invaluable as we expand our footprint in this dynamic region.”

Chang said, “I’m excited to be part of the Hana RFID team, which is recognised in the market as both a key player and a trusted partner for an ever-growing network of label converters, service bureaus and system integrators. I look forward to working alongside our partners in Asia to deliver innovative solutions and exceptional service.”

Ralson Tire North America (RTNA) has expanded its leadership team with the appointment of two seasoned tyre industry professionals.

As per the new development, Billy Dorsey Jr has been appointed as Vice President of Sales – South and Jamie McSwaney has been appointed as Vice President of Sales – North. Both the new appointments bring a combined 45 years of tyre industry experience to the company.

Brian Sheehey, President, RTNA, said, “These additions signal our unwavering commitment to accelerating Ralson’s growth in the US and Canada. We’re building a leadership team that knows how to compete, win and deliver results. Their deep industry relationships and ability to execute will be instrumental as we continue to grow our footprint in the North American trucking industry.”

Scandinavian tyre service provider Citira sees robust potential for premium tyres in the Nordic region, driven by seasonal demands and safety priorities. CEO David Boman highlights that premium tyres including Pirelli’s offerings hold a significant share in passenger car, light truck and truck tyre segments supported by harsh winter conditions that emphasise performance and reliability. Despite a slight recent decline amid broader economic pressures and rising price sensitivity, premium brands remain relevant. Citira’s new long-term partnership with Pirelli and acquisition of Dackia AB aims to consolidate and optimise premium tyre distribution across Sweden.

Scandinavian tyre service company Citira recently told Tyre Trends that Nordic countries have excellent potential for premium tyres during a discussion over its partnership with Italian tyre major Pirelli.

Speaking on the market potential, Chief Executive Officer David Boman said, “When it comes to the Nordic markets, Scandinavia in particular has a relatively high share of premium tyres across categories including passenger car, light truck and TBR segments. Compared to other global regions, the demand for premium tyres here is notably strong.

“One of the main reasons for this is the seasonal nature of our market. Winter tyres, in particular, drive a more premium-oriented approach because of the need for high performance and safety under harsh conditions. While we’ve observed a slight decline in the premium tyre share over the past few years, it still holds a significant portion of the market. This demand is closely tied to seasonal safety concerns, especially in winter, autumn and early spring. Drivers here prioritise safety and reliability, which naturally supports the continued relevance of premium brands like Pirelli.”

He noted that the decline is likely tied to broader financial challenges in the market, especially following the Covid period. Both consumers and companies have become more price-sensitive, making cost a bigger factor in purchase decisions.

As a result, there’s been a gradual increase in demand for lower-cost, imported non-European tyre brands, while the market share of European premium tyre brands has slightly decreased.

Pirelli and Citira have entered a long-term strategic partnership aimed at enhancing their market presence in Sweden. As part of the deal, Citira will acquire Dackia AB that has a network of 102 retail outlets from Pirelli.

In return, Pirelli and Dackia have signed a supply agreement extending to 2030, ensuring Pirelli remains the main tyre supplier. The transaction, pending regulatory approval, is expected to close by 2025. The partnership will boost Pirelli’s distribution and market coverage while supporting Citira’s goal of expanding a sustainable, flexible and high-quality customer service network.

THE PACT

Citira currently runs over 50 tyre shops and over five retreading units across Scandinavia and Poland. “Citira is actively working towards creating a more efficient and consolidated tyre market. While our current focus is primarily on the Scandinavian region, it’s not out of the question that we may consider expanding beyond this geographic perimeter in the future. This agreement is part of a broader industry trend where partnerships and acquisitions are used to enhance efficiency, strengthen distribution networks and provide end customers with better service coverage,” revealed Boman.

Nonetheless, the deal specifically pertains to the Swedish market, and as part of the regulatory process, Citira has conducted a market analysis to understand the potential implications on market share. However, the specifics of that study were said to be confidential and could not be disclosed prior to the official closing of the deal.

Explaining how this partnership will influence the supply chain of premium tyre in the Nordics, Boman said, “We do anticipate some changes, particularly within Citira. We operate a number of logistics centres, and this partnership presents an opportunity to optimise our overall supply chain setup. Enhancing logistics will be a key enabler of better service and responsiveness in premium tyre distribution.”

He added, “This particular deal is unlikely to have a direct or immediate impact on independent retailers or smaller distributors. More broadly, the Scandinavian tyre retail sector is undergoing consolidation. Several players are actively reshaping the competitive landscape and that trend could gradually influence the positioning of independents. But again, this specific acquisition is not a disruptive event in that context.”

Alluding to the current demand for replacement tyres, he said, “In general, the tyre market has proven to be quite non-cyclical. Even in challenging economic conditions, it tends to remain stable. That said, I believe we’re entering a phase where circularity and life-extension solutions will gain more momentum. We’re likely to see increased focus on services that extend tyre life, especially for larger fleets. This shift won’t just be driven by cost or fleet uptime concerns but increasingly by environmental responsibilities.”

THE BUSINESS

According to Boman, Pirelli represents a very minimal share of Citira’s overall sales, currently. However, the strategic partnership mainly revolves around Dackia and Pirelli, and the former is intended to become part of the Citira Group. “Moving forward, there is definitely an opportunity to deepen the collaboration with Pirelli and potentially grow their share within our overall brand mix,” added Boman.

Citira currently follows a multi-brand strategy and will continue with it even after closing of the deal. Besides, it is also involved in process and sales of retreaded TBR tyres and wheel rims.

“We operate a facility in Poland where we refurbish truck and bus rims. The process involves media blasting and repainting the rims to restore its appearance and functionality. The logic behind it is quite similar to retreading. In most cases, the structural integrity of the rim is still intact; it’s just the surface or aesthetics that degrade over time. By restoring these rims, we’re able to extend the life and reduce waste,” said Boman.

The company operates five retreading facilities collectively, located in Finland, Sweden and Poland. It uses both hot-cure and cold-cure retreading methods. Hot-cure is used in Poland and cold retreading in Finland and Sweden. Annually, it retreads around 160,000 tyres, averaging about 13,000 per month. While its current focus is on retreading, Citira is actively exploring expansion into tyre recycling as part of a broader push towards sustainability and circularity.

The company also manages tyre distribution for fleets across countries. Its circular tyre distribution approach involves not only delivering new tyres to customers but also collecting used tyre casings from them. These casings are then sent back to its retreading facilities, creating a closed-loop system. Besides, Citira has different suppliers across Europe for sourcing tyres for retreading.

MARKET WATCH

Citira sees a strong willingness in the market for consolidation and it has already engaged in several partnerships. Commenting on market challenges, Boman said, “One key challenge is the need for a player capable of driving consolidation at a larger scale. In the Scandinavian markets, this kind of brand-independent consolidation hasn’t really taken place over the last 10 to 15 years. Previously, consolidation efforts were primarily led by tyre manufacturers or affiliate networks players. However, consolidation has largely been on hold recently, leaving space for an independent actor to step in. We see that opportunity clearly and believe it is well received both by other market participants and customers. The challenge lies in successfully executing this consolidation while maintaining trust and delivering value across a diverse market.”

Commenting on the demand for retreading, he said, “The Scandinavian market has a long tradition of retreading heavy vehicle tyres. Currently, there is a growing shift towards pay-per-kilometre or tyre-as-a-service models, especially among large fleets like bus companies and hauliers. Notably, public tenders increasingly require a certain share of retreaded tyres, reflecting a strong environmental focus. Retreading extends the life of a tyre by reusing about 70 percent of its original material, making it a significant sustainability tool. The market share of retreaded tyres is gradually increasing with expectations that the retread market will grow faster than the new tyre market in the coming years.”

“The main challenges for the retreading industry lie in overcoming the longstanding perception that retreaded tyres are merely a low-cost option rather than an environmentally friendly and sustainable product. This is mostly prevalent is Scandinavia and it is crucial to shift this mindset by educating customers and the broader market about the true benefits of retreading. Moving away from a purely price-driven sales approach to one that highlights quality, durability and positive environmental impact remains a significant hurdle for the industry,” he added.