Houston, Texas – Orion Engineered Carbons SA is increasing prices for its carbon black products to recover the “rapidly rising feedstock costs”, the company announced 22 July.
Effective 1 Sept, Orion will increase sales prices by $0.08/pound for rubber grade carbon black and $0.07/pound for speciality grade carbon black for all products manufactured and sold in North America.
On all rubber grade carbon black, Orion will increase current base prices by $0.04/pound.
The price increase, the company said, is in order to meet increased demand while maintaining quality and sustainable supply.
Orion is also adding a carbon black oil (CBO) surcharge on all rubber grade carbon black and on select standard speciality grades.
CBO is the primary raw material/feedstock used for the production of furnace grade carbon black in the US.
Costs for CBO vary based on the quality and sulphur content.
According to Orion, demand for certain qualities of CBO has increased “dramatically” recently.
This is due to IMO 2020 regulations and by US EPA mandates, the carbon black maker said.
The CBO surcharge will aim to offset the rising difference between the cost of CBO and the reference feedstock differential (high sulphur fuel oil), Orion said.
The floor CBO surcharge will be $0.04/pound and will be adjusted quarterly.
For low sulphur specialty grade carbon black, the CBO surcharge of $0.07/pound will offset the differential versus the reference feedstock (1% low sulphur fuel oil).
For the US, Orion is also updating certain charges for non-standard services to "better reflect actual current costs."