Route A Or Route B? Two Legs To Walk Is The Future Of Recycled Carbon Black

I. Opening: Where Does Anxiety Come From?

After Orion’s Qingdao plant went into production and Yongdong’s patents were made public, many local pyrolysis plant owners could no longer sit still.

“Foreign giants have come in, and traditional carbon black factories have also transformed—do we still have a way out?”

The answer is:There is not only a way out, but a very good way to live—provided you can see clearly which road you are on.

II. First, clarify the "genealogy" of the three routes.

Many people lump Orion, Yongdong, and local cracker plants together, but in fact they are fundamentally taking completely different paths.

✅ Core Conclusion：

Route A and Route BIt is not a substitute relationship.Rather,##Parallel relationship。

Route A: From Start by working on “replacing traditional carbon black.”

Route B: From Initially, we were working on “cost-effective reclaimed carbon black.”

Route A (Cracked Oil → Furnace Black Method): The Game of Giants

The advantages are obvious:

✅ Drop-in Replacement (Plug-and-Play)Performance benchmarked against native N326/N330, with no need for downstream formulation changes.

✅ Complete certificationsEquipped with ISCC PLUS, directly entering the global tire giant supply chain.

The disadvantages are also very fatal.

❌ Raw materials depend on external sources.Olin does not produce its own cracking oil and needs to purchase TPO from local cracking plants. If you don't sell, it will stop production.

❌ The investment threshold is extremely high.Investment in Furnace Black Production Linehundreds of millions of yuanOrdinary cracking plants can’t afford it.

👉 One-sentence summaryThis iscapital-intensiveThis route belongs to giants and listed companies.

Route B (Cracked Carbon Black → Deep Processing): Local Counterattack

Its strengths happen to hit Route A right at its weak spot.

✅ Independent raw material supplyCoarse carbon black is produced independently, without relying on anyone.

✅ Ultimate cost efficiencyCrude carbon black was originally “waste,” but after deep processing, its added value increases severalfold, delivering unbeatable cost performance.

✅ Extremely fast response.Customers need formula adjustments and technical support, with on-site service within 24 hours.

✅ Sufficient market validationIt has already been widely used in sealing strips, rubber hoses, and foamed materials.

Areas of weakness that need to be addressed as homework:

❌ Not plug-and-playRequires downstream formulation adjustment (adding dispersants/accelerators).

❌ Complex processDe-ashing, modification, granulation, and quality inspection—each step is a technical hurdle.

❌ Lack of international certificationCurrently lacking ISCC PLUS certification, making it difficult to enter the EU’s premium tire supply chain for now.

👉 One-sentence summary.: This isTechnology-intensiveA route, belonging to a local enterprise deeply engaged in craftsmanship.

Market Positioning: Keeping Distances

The two routes had long since staked out their respective territories:

✅  The Chinese market is large enough to accommodate both approaches.Parallel coexistence。

VI. A Strong Shot in the Arm for Route B

Many local companies tend to think that Route B is merely a second-best option, which is a huge cognitive misconception.

The value of Route B can hardly be overstated.

Turn waste into treasureTurning unwanted coarse carbon black into high-value regenerated N550—that is the essence of the circular economy.

Master sovereigntyFrom scrap tires to finished products, the entire chain is independently controllable. Supply chain disruptions? Not your concern.

Practical ValidationWith ash content of 3%-4% and DBP ≥ 110, there are no more than five suppliers nationwide that can stably provide high-quality recycled N550.This is a technological barrier, not low-end competition.。

👉 Route B is not a backup plan, but rather a…The most suitable localized solution for the Chinese market。

7. Conclusion: Two Paths, Each Brilliant in Its Own Way

Orion has proven that recycled materials can be made high-end.

Local companies have proven that even crude carbon black can be transformed into high-quality products.

No one devours anyone; it is only about who goes deeper, becomes more refined, and walks more steadily on their own path.

For domestic cracking plants:

If you are on Route C (direct sales of furnace black), quickly upgrade to Route B, or you will eventually be eliminated.