The European Rubber Journal reports that Orion S.A. has indicated that supply chain disruption linked to tensions in the Middle East could create more favorable conditions for Western carbon black producers, while noting that market conditions remain highly uncertain.

In comments included in the company’s 2025 annual report, Orion CEO Corning Painter said disruptions affecting feedstocks, shipping routes, and energy markets are tightening supply conditions and reshaping regional competitiveness in chemicals and tire-related materials.

Supply chain shifts support Western producers

According to Orion, higher logistics costs and reduced access to lower-cost feedstocks have increased utilization rates at Western chemical plants, improving pricing conditions for local producers.

Painter said these market shifts have supported stronger pricing momentum and margin expansion across parts of the Western chemicals sector, including carbon black. He also noted that higher energy prices can positively influence Orion’s earnings profile, particularly where contractual feedstock pass-through mechanisms are in place.

Carbon black remains a critical raw material in tire manufacturing, where it is used for reinforcement, durability, UV protection, and conductivity. It is also increasingly relevant to circular economy strategies through recovered carbon black (rCB) produced via tire pyrolysis.

Potential implications for recovered carbon black markets

Tighter conventional carbon black markets can also affect the broader tire recycling and pyrolysis sectors.

As virgin carbon black prices rise or supply becomes less predictable, industrial interest may grow in alternatives such as recovered carbon black (rCB), which is produced by processing end-of-life tires through pyrolysis. This process can also generate tire-derived oil, steel, syngas, and pyrolysis char, creating multiple recovery streams that support rubber recycling and circular material use.

For companies developing rCB, changes in virgin carbon black pricing can influence competitiveness, particularly in rubber compounds, plastics, coatings, and industrial filler applications.

Regional sourcing trends may shift

Orion also pointed to a possible shift toward local or regional sourcing as buyers respond to supply chain uncertainty.

The company said logistical disruption and elevated shipping costs may reinforce demand for regional suppliers of key materials such as carbon black, particularly in Europe and North America. This could affect global trade flows in both virgin carbon black and secondary materials used in recycling supply chains.

At the same time, Orion cautioned that any return to normal market conditions is likely to take time, suggesting normalization could be measured in quarters rather than weeks after hostilities ease.

Market outlook remains dynamic

For the tire and rubber recycling industries, developments in carbon black markets are closely watched because they influence raw material pricing, compound formulation strategies, and interest in recycled alternatives.

As supply chains remain fluid, both conventional carbon black producers and emerging rCB suppliers may see changing opportunities tied to market pricing, regional sourcing, and broader sustainability trends in the rubber sector.

To read the full article, please proceed to the The European Rubber Journal.