Environmental Policies and Surging Demand Drive Price Volatility, Supply Chain Transformation Accelerates

Global Rubber Carbon Black Market in Q1 2025: Environmental Policies and Surging Demand Drive Price Volatility, Supply Chain Transformation Accelerates

March 23, 2025** — The global rubber carbon black market experienced significant fluctuations in the first quarter of 2025, shaped by tightening environmental regulations, recovery in the automotive industry, and persistently high raw material costs. These factors triggered structural adjustments in supply and demand dynamics, accelerating the industry’s shift toward greener practices and regionalized supply chains.  

— Prices Surpass Expectations, Cost Pressures Ripple Through Supply Chain

According to the International Rubber Study Group (IRSG), the global average price of rubber carbon black rose by 18% year-on-year from January to March 2025, marking the largest quarterly increase in five years. Soaring crude oil prices (Brent crude averaged $95 per barrel) drove up raw material costs, while environmental production restrictions in multiple Asian countries reduced capacity utilization to 70% for some manufacturers. Tire giants, including Michelin and Bridgestone, announced price hikes of 3%-5% for tires in the second quarter to offset mounting cost pressures.  

— Tighter Environmental Regulations Fuel Green Carbon Black Expansion

The EU’s Carbon Border Adjustment Mechanism (CBAM), fully implemented in January 2025, imposed an €80-per-ton carbon fee on imported carbon black, compelling companies to accelerate low-carbon transitions. The world’s first large-scale biomass-based carbon black production line commenced operations in the Netherlands, boasting an annual capacity of 100,000 tons. China’s Jineng Technology announced mass production of 100% recycled carbon black from waste tires at its Qingdao plant, with the product certified by leading global tire manufacturers. GreenTire, a market research firm, predicts sustainable carbon black will capture over 15% of the global market in 2025, doubling its 2023 share.  

— Regional Divergence Widens: Asia-Pacific Demand Outpaces Global Growth

The Asia-Pacific region, accounting for more than 65% of global carbon black consumption, saw a 30% surge in imports driven by a 12% year-on-year increase in automotive production in India and Southeast Asia. China’s high-end specialty carbon black exports rose by 22% in unit price due to domestic eco-friendly technological upgrades. In contrast, Europe’s tire-grade carbon black demand dipped 1.5% as lightweight electric vehicles spurred adoption of alternatives like highly dispersible silica, with orders for such materials jumping 40%.  

— Supply Chain Reshaping: Nearshoring and Digitalization

To mitigate geopolitical and logistical risks, companies such as Bridgestone and Goodyear shifted procurement strategies toward regionalization, with North American tire manufacturers increasing carbon black purchases from Colombia and Mexico. Meanwhile, the launch of “CarbonEx,” the first blockchain-based carbon black trading platform, enabled end-to-end transparency from raw material sourcing to carbon emission tracking. The platform has attracted 20 industry players, including Cabot Corporation and Orion Engineered Carbons.  

Outlook for Q2 2025:  

Analysts note that while new refining capacity in the Middle East may ease feedstock supply constraints, expanding global carbon tax policies could sustain price resilience. Key variables include customized tire demand for electric vehicles and breakthroughs in bio-based carbon black technologies. Companies must balance short-term cost challenges with long-term sustainability strategies to secure competitive advantages in this evolving landscape.  

Data Sources: International Rubber Study Group (IRSG), GreenTire Market Report, Black Carbon Producers Association (BCPA)