Russian carbon black maker Yaroslavl readjusts prices

Yaroslavl, Russia – Russian carbon black manufacturer JSC Yaroslavskiy Tekhnicheskiy Uglerod (Yaroslavl Carbon Black Plant) is readjusting its prices for all grades of carbon black as of 1 July.

In a letter to its clients, seen by ERJ, the Yaroslavl-based company explained that low crude oil prices and its resulting pressure on carbon black feedstock prices had prompted the change in its pricing mechanism.

“[The price pressure] has clearly shown that carbon black pricing formulas based solely on 1% fuel oil index are no longer valid and do not cover both fixed and variable costs of production in the long term,” said the letter.

The new pricing mechanism, added Yaroslavl, “will support stability of the volatile feedstock indices."

Based on the new mechanism, the surcharge or discount applied through the feedstock index would be €45 if the price of Brent crude oil falls below $40 per barrel.

The surcharge would drop to €30 if the oil price range is between $40-60bbl. Customers would pay no surcharge if Brent price ranges between $60-$110 per barrel.

Additionally, a discount is to be added to the feedstock index when Brent crude goes beyond the range $60-110/bbl. Discounts of €30 and €45 would be applied if oil prices range between $110-130bbl, or go beyond $130bbl respectively.

Price adjustments resulting from this mechanism will be applied alongside regular feedstock index-related adjustments.

Yaroslavl Carbon Black is headquartered in Yaroslavl-city, north east of Moscow where its production plant is located.

The unit currently produces 350 kilotonnes per annum of carbon black, predominately for the tire and rubber goods industries.

According to the company, more than 80% of its products are exported abroad, mainly to many European countries, including Poland, Hungary, Germany, France and Italy.