Boston, Massachusetts – Cabot Corp. will be applying a feedstock surcharge of $0.01/pound to all carbon black products sold in North America as of 1 April.
The move, said an 11 March Cabot statement, is in response to "significant carbon black feedstock costs, which are not fully reflected in fuel oil price indices."
“Refineries have been responding to developments such as decreased availability of heavy crude from countries such as Venezuela and Mexico and preparing for new environmental regulations,” said the company release.
As a result, the company said it was seeing changes to the type and availability of material with the specific quality required for the production of carbon black.
The surcharge, Cabot added, will enable it to “remain a reliable supplier of high-quality carbon black products” and meet growing demand in the region.