High oil costs could force Columbian to idle plants

Marietta, Georgia -- Carbon black producer Columbian Chemicals Co. may idle some capacity because of low margins caused by high oil prices in addition to increasing black prices in July and cutting a surcharge in North America of 8 cents per pound to 6 cents.

The undefined increase in carbon black prices in July reflects second quarter feedstock costs, according to James Howard, regional president for North America. He said the unprecedented high oil prices are making carbon black margins unacceptably low, and “we are faced with the decision of possibly idling capacity.”

The surcharge of 8 cents per pound took effect June 1. Taking into consideration the quarterly price adjustment, Columbian said it will cut that surcharge by 2 cents on July 1.

The surcharge and price increase will more accurately reflect current feedstock costs, Howard said.

From Rubber & Plastics News (A Crain publication)