China Carbon Black Market By Process Type (Furnace Black, Gas Black, Lamp Black, Thermal Black), By Application (Tires, Plastics, Toners, Coatings, Textile Fibers, Others), By Region, Competition, Forecast and Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.13 BIllion
CAGR (2026-2031)	4.37%
Fastest Growing Segment	Furnace Black
Largest Market	South-Central
Market Size (2031)	USD 6.63 BIllion

Market Overview

The China Carbon Black Market will grow from USD 5.13 BIllion in 2025 to USD 6.63 BIllion by 2031 at a 4.37% CAGR. Carbon black is a paracrystalline carbon material produced through the incomplete combustion of heavy petroleum products, serving primarily as a reinforcing filler in tires and industrial rubber goods. The market’s growth is fundamentally supported by the expansion of the domestic automotive manufacturing sector and the subsequent demand for high-performance tires, alongside rising requirements for rubber components in infrastructure projects. According to the China Rubber Industry Association, in 2023, the sales revenue of the top ten tire manufacturers in China totaled approximately 124.8 billion yuan, marking a 5.55% annual increase which directly correlates to sustained demand for carbon black additives.

However, a significant challenge impeding market expansion is the tightening of environmental regulations and "dual carbon" policies which impose strict emission limits on production facilities. Manufacturers face increasing operational costs due to mandatory investments in pollution abatement technologies and energy-efficient processes, potentially forcing the closure of smaller, non-compliant plants and constraining overall supply elasticity.

Key Market Drivers

The sustained increase in tire production capabilities and export volumes acts as a primary catalyst for the market, given the material's essential role as a reinforcing filler that enhances tire durability. Chinese tire manufacturers are aggressively expanding their global footprint, necessitating higher volumes of carbon black to meet both domestic assembly requirements and international replacement market orders. This export-oriented growth creates a consistent baseload demand for producers, insulating them partially from domestic fluctuations. According to the General Administration of Customs, January 2024, in the '2023 Annual Import and Export Data', China exported a total of 8.86 million tons of rubber tires, reflecting a substantial 16% increase compared to the previous year. Such elevated production levels directly compel upstream carbon black suppliers to scale operations to ensure a steady feedstock supply for the tire industry.

Simultaneously, the surging demand for specialty carbon black is propelled by the rapid electrification of the automotive sector, specifically for use in electric vehicle batteries where it serves as a critical conductive agent. As manufacturers strive to improve energy density and charging speeds, the consumption of high-purity conductive carbon additives has accelerated significantly. This trend is inextricably linked to the broader automotive production landscape which requires advanced material inputs. According to the China Association of Automobile Manufacturers, January 2024, in the 'December 2023 Automotive Production and Sales Report', the production of new energy vehicles reached 9.59 million units for the full year, marking a 35.8% year-on-year growth. To support this expanding industrial ecosystem, the material supply chain has remained robust. According to the Carbon Black Branch of the China Rubber Industry Association, in 2023, the total national output of carbon black reached 4.93 million tons, underscoring the scale of production required to satisfy these combined manufacturing demands.

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Key Market Challenges

The tightening of environmental regulations and "dual carbon" policies stands as a formidable barrier to the expansion of the China Carbon Black Market. As the government enforces stricter emission limits and energy consumption standards, manufacturers are compelled to divert substantial capital toward pollution abatement technologies and process upgrades. This regulatory pressure fundamentally alters the cost structure of production, driving up operational expenses and significantly eroding net margins. Consequently, the financial burden of compliance limits the ability of companies to reinvest in capacity expansion or research and development, stifling the sector's overall dynamism.

This financial strain is quantitatively evident in recent industry performance data. According to the Carbon Black Branch of the China Rubber Industry Association, in 2024, the average profit margin for the domestic carbon black industry during the first three quarters was recorded at a razor-thin 0.61%. Such minimal profitability indicates that despite sustained demand from the tire sector, the high cost of regulatory compliance is effectively suffocating the industry's economic growth. This environment forces the market into a consolidation phase where financial viability, rather than demand, becomes the primary constraint on development.

Key Market Trends

Market Consolidation Favoring Large-Scale Integrated Producers
The market is witnessing a decisive structural transformation characterized by vertical integration, where major tire manufacturers are increasingly establishing their own upstream carbon black production capabilities to secure supply chain stability and mitigate raw material price volatility. This trend moves beyond simple capacity expansion, representing a strategic consolidation where downstream giants effectively internalize feedstock production to protect margins against the fluctuating costs of coal tar and oil. By controlling the production of essential reinforcing fillers, these integrated entities can optimize logistics and ensure consistent quality for their tire output, placing immense competitive pressure on independent, non-integrated carbon black suppliers. According to the European Rubber Journal, October 2024, in the 'ZC Rubber to start up China carbon black plant by yearend' report, Zhongce Rubber Group confirmed the imminent launch of its own carbon black facility in Tianjin with an annual capacity of 85 kilotonnes, explicitly aimed at supporting its tire renovation project and securing a captive supply of both hard and soft grades.

Strategic Production Shift Towards High-Margin Specialty Carbon Black Grades
Concurrently, established carbon black producers are aggressively pivoting their product portfolios from commoditized standard rubber grades towards high-margin specialty variants designed for plastics, coatings, and inks. This strategic shift is a direct response to the razor-thin profitability characterizing the standard tire-grade market, compelling manufacturers to seek value in sophisticated applications that offer superior pricing power and protection from cyclical tire industry demand. While the electric vehicle sector drives some of this demand, the broader push includes advanced grades for industrial coatings and high-performance polymers which require stringent purity and morphological specifications. This focus on value-added products is necessitated by the financial strain evident in the commoditized segment. According to Jiangxi Black Cat Carbon Black Co., Ltd., April 2024, in the '2023 Annual Report', the company reported operating revenue of 9.45 billion yuan, representing a 4.47% year-on-year decline, a financial contraction that has accelerated their strategic reallocation of resources toward developing specialized, higher-value carbon products to restore long-term profitability.

Segmental Insights

The furnace black segment is establishing itself as the fastest growing category within the China carbon black market. This accelerated expansion is primarily driven by extensive demand from the domestic tire manufacturing sector, where furnace black serves as a critical reinforcing agent. The process is favored for its high yield and versatility, allowing producers to meet the substantial volume requirements of the automotive industry efficiently. Furthermore, strict environmental mandates from the Ministry of Ecology and Environment encourage the adoption of modern furnace black production technologies over obsolete and less compliant manufacturing methods.

Regional Insights

South Central China stands as the leading region in the China Carbon Black Market, commanding the highest market share by value. This dominance is anchored in the region's status as a critical hub for the automotive and rubber industries, which generate substantial demand for carbon black. Unlike areas focused principally on raw material processing, South Central thrives on extensive downstream consumption, particularly from tire manufacturers and industrial rubber producers. This robust industrial activity ensures a steady requirement for premium material grades, solidifying the region's position at the forefront of the national market.

Recent Developments

• In January 2025, Longxing Chemical announced the commencement of commercial production at its newly constructed carbon black manufacturing unit in Changzhi city, Shanxi province. The company confirmed in a stock exchange filing that the facility had passed all necessary inspections, including those for safety, environmental protection, and energy conservation. This expansion project, which involved a total investment of approximately 3.1 billion Yuan (€390 million), added 200 kilotonnes per annum of production capacity to the site. The Changzhi base now hosts a substantial total capacity, strengthening Longxing Chemical's position as a major supplier to leading global and domestic tire manufacturers.
• In October 2024, Zhongce Rubber Group (ZC Rubber) confirmed the launch of a new carbon black production facility at its site in Tianjin, marking a significant step in its vertical integration strategy. The new plant was designed with a total annual capacity of 85 kilotonnes, comprising dedicated lines for both hard-grade and soft-grade carbon black. This development was part of a broader renovation project at the location, following the company's acquisition of a local tire manufacturer. The facility aimed to secure a stable supply of high-quality raw materials for ZC Rubber’s expanding tire production capabilities, including all-steel engineering radial tires.
• In April 2024, Jiangxi Black Cat Carbon Black showcased its latest advancements in conductive carbon black additives for lithium-ion batteries at the CIBF2024 exhibition in Chongqing. During the event, the company highlighted that its independently developed conductive products had passed validation tests with multiple battery manufacturers and entered the bulk procurement stage. Concurrently, Jiangxi Black Cat announced plans to invest in a new production facility in Leping, designed to add 20,000 tons of annual capacity for conductive carbon black. This strategic move was aimed at meeting the surging demand from the new energy vehicle sector and reducing reliance on imported conductive agents.
• In March 2024, Cabot Corporation implemented a strategic restructuring of its operations in China by closing its reinforcing carbons unit in Tianjin. The company stated that this decision was part of a broader initiative to upgrade the facility's capabilities to support its growing battery materials product line. By ceasing the production of standard reinforcing grades at this specific unit, Cabot Corporation aimed to consolidate its resources and focus on high-growth applications such as conductive carbon additives for electric vehicle batteries. The move allowed the company to leverage its existing infrastructure in Tianjin while pivoting towards more specialized, higher-margin carbon black products.

Key Market Players

• Jiangxi Black Cat Carbon Black Co. Ltd.
• Shanghai Cabot Chemical Co. Ltd.
• LongXing Chemical Stock Co. Ltd.
• Suzhou Baohua Carbon Black Co. Ltd.
• Shandong Huadong Rubber Materials Co. Ltd.

By Process Type	By Application	By Region
Furnace Black Gas Black Lamp Black Thermal Black	Tires Plastics Toners Coatings Textile Fibers Others	North North-East East North-West South-Central South-West

Report Scope:

In this report, the China Carbon Black Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• China Carbon Black Market, By Process Type:

• Furnace Black
• Gas Black
• Lamp Black
• Thermal Black

• China Carbon Black Market, By Application:

• Tires
• Plastics
• Toners
• Coatings
• Textile Fibers
• Others

• China Carbon Black Market, By Region:

• North
• North-East
• East
• North-West
• South-Central
• South-West