PCBL targets higher carbon black exports to US, Europe

Kolkata, India – PCBL Chemical is targeting increased carbon black exports to the US and Europe, as disruptions to Russian carbon black supplies and rising coal-tar prices in China create new market opportunities.

"Russian supplies have become challenging," managing director Nilesh Koul said during a 2 Nov earnings call, adding that higher Chinese feedstock costs were also reducing the competitiveness of Chinese imports.

These developments, Kould said, are expected to support higher selling prices and improved margins in the US and Europe.

The group, Kould explained, is expanding its overseas presence, investing in distribution infrastructure and negotiating new supply agreements with major international customers.

"We are strengthening our presence in Europe and North America through Antwerp warehouse and [our] US entity," said Koul.

The efforts, he noted, are aimed at improving "supply chain flexibility, customer engagement, and local support."

The group is developing 'railcar distribution infrastructure' and local inventory capabilities in the US, while expanding its warehousing operations in Antwerp, Belgium.

According to Koul, roughly 40–50% of carbon black volumes in the US market are distributed by railcar, a capability PCBL had previously lacked.

"Because we are setting that infrastructure [railcar] up, we expect that volume to go up as well," he said.

PCBL said it is also seeking longer-term supply agreements with major international customers, where it currently holds a relatively small market share.

"We are entering into conversations with them on long-term tie-ups," said Koul, adding that these could see PCBL's export volumes "multiplying" over the coming year.

While Koul expects "a significant share" of PCBL's additional production capacity to be directed towards exports, freight costs and uncertainty over US import tariffs continue to influence market environment.

Although concerns over US tariff volatility had eased, Koul said major customers remained cautious about committing substantial volumes to overseas suppliers.

"Right now, it is low," he said of the uncertainty, but customers remained concerned that tariffs could increase again.

PCBL is therefore planning to maintain local inventories in the US to provide greater security of supply.

"We will keep some degree of inventory in the US locally," Koul said, to ensure customers did not face shortages if shipments were disrupted.

In the short-term, PCBL expects US sales volumes to increase next year, with Koul noting that greater certainty over trade arrangements would support stronger growth.

In Europe, meanwhile, PCBL is negotiating supply agreements for 2027, including speciality and rubber-grade carbon blacks.

"While the overall Europe market growth is still a bit of a question mark," Koul said, PCBL expects to increase its presence.

The group, he said, was seeing "positive indications on growth" during customer negotiations.