- Global carbon black prices moved upward in Q1 2026, with early weakness followed by a strong recovery after the Chinese New Year and Spring Festival, driven mainly by cost escalation.
- Feedstock pressure intensified as coal tar and oil-based inputs rose sharply post-holiday, further supported by higher energy and logistics costs linked to the Iran war and disruptions in the Strait of Hormuz.
- Downstream demand improved after the holiday period, particularly from tire and rubber sectors, though cost pass-through created pressure across the value chain.
Asia
In Asia, prices initially remained weak in January due to declining coal tar prices and sluggish demand ahead of the Chinese New Year and Spring Festival, with downstream tire manufacturers reducing operations. Post-holiday, the market shifted as feedstock costs surged sharply, with coal tar, accounting for a major share of production costs, rising and driving price increases. Major producers raised prices multiple times, triggering a broader market response. At the same time, environmental restrictions reduced supply, tightening availability. Demand improved as downstream industries resumed operations, with nearly 50 tire manufacturers announcing price hikes due to rising input costs, reflecting strong cost transmission across the chain. The Iran war and disruptions in the Strait of Hormuz further increased logistics and energy costs, amplifying feedstock pressure and supporting prices.
Europe
In Europe, carbon black prices averaged around EUR 0.93/kg (FOB, N550) during Q1 2026, rising from nearly EUR 0.88/kg in January to EUR 0.96/kg in March, reflecting an approximate ~8.13% increase over the quarter, while quarter-on-quarter prices improved by nearly ~7.20%. The upward pricing trend was primarily supported by elevated feedstock costs, tightening global supply availability, and higher freight and energy expenses following the Iran conflict and disruptions across the Strait of Hormuz trade route. Stable demand from the rubber, tire, and industrial manufacturing sectors further strengthened market fundamentals, enabling suppliers to gradually pass on higher production costs despite cautious procurement activity across the European market.
North America
In North America, carbon black prices followed a similar upward trend, supported by higher feedstock costs and supply-side constraints. Rising coal tar and oil-linked input costs increased production expenses, while logistics disruptions tied to Middle East tensions added further pressure. Demand from tire and rubber industries improved post-holiday, though rising costs led to cautious buying behaviour and margin pressure for downstream players.