Houston, Texas – Orion Engineered Carbons SA is adopting the ‘Platts north west Europe 1% sulfur fuel oil index’ (FO 1%S FOB NWE) for contract pricing in Europe, Orion announced 7 June
FO 1%S FOB NWE will replace the ‘1% sulfur Rotterdam fuel oil index’ (FO 1%S FOB ROT) in Europe as of 1 July, according to the carbon black maker.
The current index “is no longer functional, does not trade forward and does not track other 1% indices anymore,” the company explained.
FO 1%S FOB NEW “is currently functioning and therefore is the appropriate index at this time," added Orion, which exclusively uses low-sulphur carbon black oil (CBO) grades in Europe.
“Orion values our European customers and strives to work with them in a highly transparent way,” stated Erik Thiry, senior vice president rubber carbon black.
The company, he added, will continue to monitor CBO market changes with the upcoming IMO Marpol 2020 regulations.
“We will keep our customers updated if further required changes are needed due to changes in feedstock markets,” said Thiry.