Birla Carbon North America Announces Price Index Change
MUMBAI, India/MARIETTA, Georgia – Effective Aug. 1, 2019, Birla Carbon changed all North America contract price formulas. The long-used index up to that date, U.S. Gulf Coast High Sulfur Fuel Oil, will change to U.S. Gulf Coast 0.5% Sulfur Fuel Oil.
Feedstock to make carbon black is sourced from markets driven by marine fuel. This market is undergoing fundamental changes driven by regulations widely known as MARPOL 2020 or IMO 2020, which establishes the maximum allowable sulfur content in marine fuel at 0.5%. While this regulation is effective Jan. 1, 2020, the supply chain is adjusting now.