Indian activated carbon industry faces global price pressure
Joshy Joseph said the growing penetration of lower-value Chinese activated carbon products was another major concern
The Indian activated carbon industry is encountering increasing global market pressures, according to Joshy Joseph, vice-president of the Activated Carbon Manufacturers Association of India. European, CIS region, and Russian water treatment and filtration companies are increasingly opting for cheaper alternatives, such as coal, instead of Indian activated carbon.
Meanwhile, lower-priced Chinese products are gaining increased market share. Joseph highlighted the added burden of higher logistics costs due to geopolitical tensions, container shortages, and surging freight rates, making Indian activated carbon less competitive in international markets. The industry is vital in the US, UK, Germany, Japan, South Korea, and African nations, with significant demand in water treatment, gold extraction, and other applications.
Joseph also expressed concern over the proposed 100% tariff by the Trump administration, which could heavily impact Indian exports to the US. Currently, about 18% of India's activated carbon exports are directed towards the US market. He further noted the growing presence of affordable Chinese activated carbon products, with China sourcing bulk coconut materials from Indonesia and the Philippines to manufacture and export at competitive prices.
This, coupled with lower raw material costs, gives Chinese producers a significant price advantage over Indian manufacturers. The lower demand for water carbon, combined with higher costs, has resulted in a price decline in the market. Coconut shell charcoal prices have dropped below ₹100 per kg, while coconut shell prices have fallen to around ₹35 per kg.
In the previous fiscal year, the Indian activated carbon industry reported a turnover of approximately ₹4,700 crore from exports of 1.80 lakh tonnes. Despite anticipating exports to surpass ₹5,000 crore in the current financial year, the industry remains cautious due to global market uncertainties. Additionally, imports of coconut shell charcoal have seen a sharp rise in April-July 2026-27, particularly through ports in Kochi, Chennai, and Tuticorin.
However, the average import price remains around ₹80-90 per kg, compared to ₹100-103 per kg for domestic material.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
