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Atma seeks commerce min help to resolve carbon black shortage

 RitaLily
  52
 May 30, 2024

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The PTI association said that there is a need to restrict the export of carbon black.

Automotive Tire Manufacturers Association (Atma) Its members have offered to buy all inventories in the country as tire capacity utilization may fall by 10% in the current quarter as pressure on carbon black persists.

Atma’s announcement comes after carbon black makers claimed there was no shortage and that production exceeded domestic demand. Atma carbon black makers have been asked to disclose their available inventory.

Atma has sought the intervention of the Commerce Ministry to address the issue as an unexpected drop in tire production due to lack of supply of carbon black will force it to import more finished tires from India, thereby hampering value creation in the country.

“The overstatement by carbon black manufacturers is quite different from the reality of the market. Even in the non-tyre rubber sector, as many as 1,000 rubber mills are bracing for the shortage. According to the rubber industry body, Mohan Kurian, chairman of Atma Supply Chain and Resources (SCR) Group, said that Carbon Black will cease operations.

The association said it was necessary to restrict exports of carbon black to meet domestic demand without affecting tire production. The tire industry has no choice but to import carbon black to meet the domestic shortfall. However, the anti-dumping duty, which is about 40% of the import price, effectively prohibits the import of such taxes.

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