Carbon Black Prices in Europe to Reach New Heights
- 13-Jul-2022 3:14 PM
- Journalist: Patrick Knight
The relentless rise in the European Carbon Black has got another significant spike as both key producers in the European market have announced hefty price increases for the coming months. The Carbon Black prices have been on a steep uptrend in the past few months, and Carbon Black bulls are unlikely to stop in the short term.
Orion Engineered Carbons and Cabot Corporation have announced price increases for all major grades of Carbon Black. The price increase will range from Euro 200-400 per MT, varying based on grade and packaging type. The price increase came from rising feedstock costs, environmental control investments, increased cost of operations, and continued investments to ensure the market's stable supply of the material.
Meanwhile, Orion has also announced a reduction in payment terms to acceptable working capital, enabling the company to deliver a reliable supply of Carbon Black.
The price increase will be coming into effect from August 1st, 2022, or contract allow, remarked both companies.
Hence, as of the week ending July 8th, 2022, Carbon Black Hard grade prices were assessed with an increase of 2% weekly.
European Carbon Black market has been facing turbulent waters since the broadened geopolitical gulf between Europe and Russia in the light of the Ukrainian crisis. Earlier, Russia was the major exporter of Carbon Black to Europe; however, since the sanctions and ban on trade on several commodities from the West to Russia, the supply fundamentals of Carbon Black have deteriorated significantly.
As per ChemAnalyst, "Carbon Black prices are expected to remain on the bull run in the coming months as demand fundamentals are expected to outstrip the available supply in the market. The prices from the manufacturer's end are likely to remain the higher, leaving limited space for the other market participants to increase their margins."