HOUSTON — Orion Engineered Carbons S.A. announced that effective Sept. 1, 2019, or as contracts allow, the company will increase prices by $0.08/pound for rubber-grade carbon black and $0.07/pound for specialty-grade carbon black for all carbon black produced and sold in North America. The price increase is instituted to recover the rapidly rising feedstock costs as well as to ensure continued reliable supply.
On all rubber-grade carbon black, Orion will increase current base prices by $0.04/pound. This is necessary to reliably secure increased demand while maintaining quality and sustainable supply.
Carbon black oil (CBO) is the primary raw material/feedstock used for the production of furnace-grade carbon black in the United States. Costs for CBO vary based on the quality and sulfur content. Recently, demand for certain qualities of CBO has increased dramatically. This is due to IMO2020 regulations and by U.S. EPA mandates. Consequently, on all rubber-grade carbon black and on select standard specialty-grade carbon black, Orion will implement a CBO surcharge to offset the rising difference between the cost of CBO and the reference feedstock differential (high sulfur fuel oil). The floor CBO surcharge will be $0.04/pound and will be adjusted quarterly, except where significant intra-quarter swings require quicker reaction.
For low-sulfur specialty-grade carbon black, the company will add a CBO surcharge to offset the differential versus the reference feedstock (1% low-sulfur fuel oil). This surcharge is currently $0.07/pound and will be adjusted quarterly, except where significant intra-quarter swings require quicker reaction.
For the United States, Orion is also updating certain charges for non-standard services to better reflect actual current costs. The updated list is available on Orion’s website.