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Carbon black

Inputs, Costs & Commodities · Feedstock & raw material

What it is

A fine carbon powder made by partial combustion of heavy petroleum feedstock, used as a reinforcing filler in tyres and rubber goods. It typically ranks second only to rubber in a tyre's material cost and determines tread wear, rolling resistance and strength

Production is crude-linked through carbon black feedstock oil, and India has held anti-dumping duties on rubber-grade imports from China and Russia

Impact on industries

  • Adds a second crude-linked input alongside synthetic rubber, so a tyre maker's cost base moves with oil on two fronts at once
  • Domestic capacity is substantial and duty-protected, so supply security is better than for speciality elastomers that must be imported
  • Anti-dumping protection cuts both ways down the chain - it shields domestic producers while raising input costs for the tyre and rubber goods makers who buy it
  • Grade determines application, so it is a specification input rather than a commodity - the tyre maker cannot simply switch to the cheapest available source

Industries affected