Orion rubber black volumes fall amid low-cost tire imports

Houston, Texas – Orion SA’s rubber carbon black business has seen a decline in sales, due mainly to an 11% decline in volumes for the third quarter of 2024.

The business unit reported sales of $300 million (€282 million) for the three months ended 30 Sept, down 4.7% compared to the year before.

The derease was due to 10.7% year-on-year lower volumes at 165 kilotonnes, partially offset by favourable price, Orion reported 7 Nov.

Segment adjusted earnings (adjusted EBITDA), however, increased 3.3% for the three-month period to $53 million, on stronger price/mix and lower costs.

Nine-month rubber volumes decreased 3.5% year-over-year to 520.8 kilotonnes, primarily due to lower demand in the Americas and APAC regions.

Net sales for the period decreased 2.0% to $944.4 million, impacted by lower volumes, which were partially offset by favourable price.

Adjusted earnings for the first three quarters decreased by 8.7% year-on-year, to $157.4 million, driven primarily by “lower demand in Americas and APAC regions, lower cogeneration and higher fixed costs.”

Commenting on the third quarter, Orion said demand was soft from global tire makers, particularly in Americas, due in part to the “high level of tire imports into Western markets.”

“We addressed this as part of our commercial strategy for 2025,” said Orion CEO Corning Painter.

As a result, the CEO said, the group expects volume growth in 2025, “even in a flat market, while maintaining rubber segment gross profit per tonne.”

While increased tariffs and/or economic improvement provide potential upsides, Corning anticipates operational improvements, productivity initiatives and strong cost management to contribute to improved results.