1,000 rubber units face closure due to carbon black shortage
15 Feb 2018 11:17 PM IST
Mumbai: The All-India Rubber Industries Association has urged government to remove anti-dumping duty on imports saying around 1,000 small and medium rubber units are facing closure due to the acute shortage of carbon black, the major raw material used in rubber products.
"Carbon black imports from China, Russia and other countries face anti-dumping duties. Due to this, small & medium rubber units are facing shortage of carbon black and resultant price hike," association senior vice-president Vikram Makar told reporters here on Thursday.
Carbon black shortage is so severe since the past few months that over 1,000 units are on the verge of closure, which will lead to loss of nearly 2 lakh jobs, while the industry is losing about Rs 750 crore every month, Makar said.
Carbon black is the most preferred reinforcing material and filler in rubber products, both in tyre and non- tyre segments, comprising 25-30 per cent of the product by weight. It is also used in plastics, paints and inks as colouring pigments.
The domestic rubber industry is seen growing at 8.42 per cent CAGR during 2016-2020. However, the carbon black capacity has not grown in the past couple of years, commensurate with the demand.
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