In April 2025, Carbon black experienced mixed trends in its prices globally which is primarily influenced by the shifting trade policies, fluctuating raw material costs and changing demand patterns.

In Asia, prices remained weak as an oversupply situation persisted whereas in the Chinese market, the coal tar which is the feedstock of Carbon black shows a slight increase in its prices. However, these gains failed to provide substantial cost support as downstream industries remained weak about future carbon black prices. Most of the Chinese tyre manufacturers had stable operations but with an expectation of further decline in the prices they were reluctant to procure large volumes. This situation kept the market sentiments weak.

Unlike China, the Indian market experienced an incline in the price of Carbon black during the first week of April which is primarily driven by the higher raw material cost and stable domestic demand. However, the outlook remains uncertain as the U.S. government imposed a 26% tariff on Indian rubber goods including tyres. This tariff has put Indian exporters at a competitive disadvantage compared to countries like Vietnam and Turkey. As these countries enjoy lower or no tariffs on rubber exports to the U.S. 

Meanwhile, in Thailand Red Avenue invests $70 million in a rubber additive plant in Rayong which highlights the country’s commitment to strengthening its rubber and tyre industry. This move could boost Carbon black demand in the long term, even as the short-term market remains weak.

Similarly, the U.S. market also shows a decline in the prices of Carbon Black which is also driven by the weak demand and trade disruptions following new tariffs on imported tyres from Thailand, Indonesia, Vietnam and South Korea. As the US tyre sales depend highly on imports, the higher discouraged tyre production reduces carbon black consumption while domestic manufacturers hoped for increased demand due to higher raw material costs and limited production growth. 

At the same time, in Europe Carbon black prices remain stagnant which is supported by steady industrial output and balanced supply-demand dynamics. However, global trade disruptions and shifts in raw material costs could influence future trends.

Looking ahead, ChemAnalyst expects Carbon black prices may remain under pressure as the US tariff takes effect in April, impacting global trade dynamics. However, a slight increase in prices may be seen in select regions depending on regional demand shifts, supply adjustments and evolving trade policies which will play a crucial role in shaping market trends in the coming months.