Cabot Corporation recently announced that it will add a 1 cent/lb raw material surcharge (approximately RMB 150/ton) to all rubber carbon blacks sold in North America from April 1, 2019. . This is another carbon black producer that decided to impose a surcharge after Ou Lilong Engineering Carbon Company.
The company emphasizes that the current carbon black raw material market is currently in a very active period. Most of the carbon black raw materials in North America are by-products of the crude oil refining process. In recent months, refineries have been responding to the problem of reduced supply of heavy crude oil in countries such as Venezuela and Mexico, as well as preparing for the implementation of new environmental regulations. As a result, Cabot sees that the type and availability of specific quality feedstocks required for carbon black production has changed. To this end, Cabot digested a large amount of additional raw material costs that were not fully reflected in the fuel price index in the price formula.