Chinese carbon black delegation visits India

ERJ staff report (DS)

Beijing - A delegation from China's carbon black industry visited India from 13-19 January. Three companies were represented; Jiangxi Black Cat; Hebei Bright and Shandong Gold. The mission was supported by China's Ministry of Commerce.

The mission visited Indian carbon black makers and also visited Apollo Tyres, JK Industries and the Indian ATMA (Automotive Tyre manufacturers' Association). They discussed at length India's imposition of special measures on Chinese carbon black imports

The report shows that India's carbon black capacity is 910, 000 tonnes/year, but actual production in 2011 was 860,000 tonnes, of which 200,000 was exported. Domestic demand was around 600,000 tonnes. The Chinese delegation concluded that the market is not over-supplied at present.

Another conclusion is that price is a big factor, but also reliability of regular deliveries. In comparison to Chinese companies, India's costs - notably the salaries of senior executives - is high, however worker productivity is low.

Indian tyre makers continue to buy Chinese carbon black, but only up to 25 percent of their total requirement. One reason for this is to diversify the supply chain away from India's domestic suppliers.

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Report on CRIA website (Chinese language)

Above report auto-translated from Chinese