Europe rubber-blacks supply ‘to tighten in 2024’

Houston, Texas – Carbon black supply to the EU tire & rubber industry looks set to tighten further due to potential sanctions on Russian imports from mid-2024, CEO Corning Painter has warned.

According to Painter, the industry has “absolutely noted the possibility of a ‘full-on ban’ as evidenced by an earlier-than-usual start to contract negotiations with carbon black customers.

This reflects a general belief that EU regulators will impose a ban next year, Painter noting that tire and rubber product makers had already "cutback somewhat on Russian carbon black.”

The situation, the Orion leader continued during a 4 May earnings call, is an opportunity for carbon black suppliers, particularly those with production capacity in Europe.

Despite “the rubber and Chinese automotive [market] being a little bit slower than typical run-rate,” Painter expects tight supply in Europe will also help Orion’s Chinese operations.

“Part of the solution for Europe next year will surely involve some imports from China [...which is] positive in terms of longer-term outlook for China,” he explained.

Painter went on to note while there "is more energy and emphasis and concern around the European situation," the Amercian carbon black market also remained strong.

Demand for rubber blacks currently ‘outpaces’ supply in North America, where supply has remained flat due to plant closures and 'investment discipline', said the CEO.