Europe Imposes Import Restrictions on Russian Carbon Black and Synthetic Rubber
- 07-Mar-2023 2:04 PM
- Journalist: Robert Hume
France: Europe is likely to face supply tightness in the upcoming weeks as it has sanctioned Carbon Black and Synthetic Rubber imports from Russia recently. In reaction to the Putin regime's war on Ukraine, the EU penalized imports of Synthetic Rubber and Carbon Black from Russia in its tenth package of sanctions. The decision, made public on February 25, appears to take effect immediately and imposes import quotas of 562,973 tonnes for Synthetic Rubber and 752,475 tonnes for Carbon Black.
The European Tires & Rubber Manufacturers' Association (ETRMA) warned that the import quotas are only valid until June 30, 2024, after which an import embargo will be in effect. According to Eurostat data for these materials across all uses, the quotas appear to be equal to pre-war import levels, according to the Brussels-based business organization. Also, it is expected that the European Commission (EC) will establish a monitoring system and provide a monthly report on the imports of synthetic Rubber from Russia.
If abnormalities are discovered using the system, according to the ETRMA, Brussels officials may impose restrictions on certain imports. In a statement on February 25, the EC stated that the ban on Russian imports of bitumen, associated components, Carbon Black, and Synthetic Rubber totaled roughly €1.3 billion. As downstream demand for Synthetic Rubber and Carbon Black from the automotive industry is expected to surge in the second quarter of 2023, this sanction on Russian imports is not good news.
As per ChemAnalyst anticipation, "The Carbon Black and Synthetic Rubber prices are likely to increase in the upcoming weeks as the European automotive market has already been showing signs of improvement, which would soon become significant enough to influence and cause the strong demand for Carbon Black and Synthetic Rubbers in the market. However, this limitation on Russia's imports would definitely impact the level of inventories of Carbon Black and Synthetic rubbers in the European nations, causing their reduced availability in the market."