News analysis - Carbon black majors trim expectations

London - Carbon black producers have reported reduced demand worldwide, with Cabot Corp, Tokai Carbon, Orion SA and PCBL all downgrading their full-year forecasts following recent declines in sales and earnings.

Largest player Cabot said a 5% year-on-year drop in volumes – especially in Asia and the Americas – affected results in its Reinforcement Materials segment, which includes carbon blacks.

President and CEO Sean Keohane, said Cabot did “not yet see signs of improvement in the external environment” particularly due to the ongoing impact of Asian tire imports on Western markets.

For the first quarter of its 2026 fiscal year, Cabot’s Reinforcement Materials segment expects a dip in earnings, driven by lower volumes in the Americas and Europe and increased “competitive intensity” in Asia.

At Tokai Carbon, sales of carbon black for the first nine months of 2025 fell by around 7% and operating profit by nearly 29% year-on-year due to a decline in volumes and margins, as well as rising   fixed costs.

Looking ahead, the Tokyo-headquartered group expects full-year revenue in carbon black to fall by 12.6% year-on-year to Yen146 billion, and operating profit to decline by 6.1% to Yen12.4 billion.

Elsewhere, Houston, Texas-based Orion SA lowered its earnings forecast for 2025, as its rubber reinforcement division reported a weak performance in the third quarter of the year – despite improved volumes.

Read the full ERJ News Analysis report