PCBL Chemicals expects its roots in India to deliver medium and long term benefits despite the current disruption to global trade routes.

In a 29 July earnings call, PCBL managing director Nilesh Koul said in addition to strong domestic demand, the market environment was particularly positive due to three structural changes which he said were reshaping the global carbon black market in India's favour.

The factors, according to Koul, are the expanding Indian trade agreements, a tariff advantage in the US market and contracting Russian refining and carbon black exports.

India's trade architecture has strengthened considerably, he said, pointing to the India-US trade deal discussions and subsequent negotiations, which have brought tariffs on Indian exports down from last year's peak levels.

The India-EU free trade agreement, concluded in January and now progressing through ratification, is also expected to remove the 4.5% EU import duty on Indian tires.

That, Koul said, should improve the competitiveness of Indian tire manufacturers in an important export market and, in turn, support domestic carbon black demand.

India's agreements with the UK and EFTA, already in force, along with new economic partnerships with Oman and New Zealand, are further strengthening the country's position as a preferred supplier.

"Very few carbon black producing geographies enjoy this breadth of preferential market access".