CSRC pivots to high-end materials as traditional carbon black market sags under oversupply

Taiwanese carbon black giant CSRC International Corp. is accelerating its pivot away from commoditised rubber grades toward speciality materials, citing persistent oversupply and brutal price competition in the traditional carbon black sector. In a 26 May shareholders’ meeting report, the group—parent of Continental Carbon—confirmed it has begun commercial sales of single-walled carbon nanotubes (SWCNTs) as part of a broader push into high-end conductive materials for lithium batteries, semiconductors and advanced electronics. The move aligns with surging demand from AI, electric vehicles and new-energy industries. CSRC admitted 2025 was a tough year, with traditional carbon black markets battered by oversupply and price wars, but said it has already implemented a global restructuring plan to shift product mix and reduce exposure to low-margin standard products. In the US, CSRC’s Ponca City, Oklahoma plant completed equipment repairs and upgrades in Q1 2026, lifting capacity utilisation to 84% in April from 65% in 2025 after earlier operational disruptions. The site remains a key North American supply base, though CSRC did not disclose product mix details. In mainland China, the group shut its Chongqing rubber black plant and closed its Anshan facility in Liaoning province as part of efforts to cut losses and shrink commoditised production. Remaining Chinese operations are now focused on speciality grades amid weak domestic pricing. In India, CSRC’s Dahej plant adjusted order-taking to counter aggressive local rivals, raw-material procurement headaches and ongoing price pressure, while tilting more toward tire-related orders and domestic demand to protect margins. In Turkey, CSRC confirmed progress on its Iskenderun project—a new rubber-grade plant with annual capacity of roughly 170 kilotonnes due to start up in 2027—designed to serve both the Turkish domestic market and European customers in a region heavily reliant on imports. CSRC stressed the traditional carbon black market will stay oversupplied and competitive, reinforcing its strategic shift toward speciality products. The group also highlighted robust early demand for SWCNTs, noting global demand exceeds 200 tonnes versus effective supply of around 90 tonnes, and said it plans to scale SWCNT capacity to about 600 kg by end-2026 and over 2 tonnes annually in 2027. Despite weaker 2025 profitability from competitive pressure, raw-material volatility and one-off costs, CSRC expects operating performance and cash flow to improve as restructuring and portfolio upgrades take hold.