EU Limits Carbon Black Imports From Russia in its New Sanction
- 20-Mar-2023 2:56 PM
- Journalist: S. Jayavikraman
Hamburg, Germany: The Black Rubber composition contains between 40 to 70 percent Carbon Black as a reinforcing filler. Tire manufacturing is one of the major applications for this product. Some of the Carbon Black used in the south is imported from Russia as new facilities go online. Around 700,000 tonnes of Carbon Black are exported from Russia each year. China, Germany, Korea, and other nations also export large quantities of the product. Around 2,00,000 tonnes of Carbon Black are imported annually into the US alone. Significant disruptions to the Carbon Black market will be challenging to make up for. These hiccups may result in global market shortages and issues with the supply of goods made of plastic.
The EU has now enacted fresh sanctions against Russia because of the conflict in Ukraine. A step before the whole import ban that will take effect after July 1, 2024, a synthetic rubber import quota and a Carbon Black import quota will be implemented right away. The EU resolution, which went into effect immediately on February 25, 2023, establishes import quotas of up to 562,973 tonnes of synthetic rubber and 752,475 tonnes of Carbon Black. According to a US market research company, a sizable amount of the Carbon Black utilized in Europe is produced in Russia, Ukraine, and Belarus.
Europe wants to lessen its reliance on Russian oil at the same time, and since oil is a necessary raw element for the creation of Carbon Black, this could also have an impact on supply. While it is impossible to predict how the sanctions would impact Enviros' operations, many businesses are assessing the long-term risks of importing goods from other countries. It is critical that the market be aware that we are monitoring developments given that firms in the EU may soon experience a constrained supply of Carbon Black, said Thomas Sorenson, CEO of Enviro. Enviro saw a spike in interest from both current and potential clients shortly after the Russian invasion in 2022 to acquire supplies of recovered Carbon Black and recycled oil, often known as pyrolysis oil.