BOSTON—Cabot Corp. will begin applying a feedstock surcharge of 1 cent per pound to all carbon black products sold in North America as of April 1.
The move, Cabot said in a new release, comes in response to "significant carbon black feedstock costs, which are not fully reflected in fuel oil price indices.
"Refineries have been responding to developments such as decreased availability of heavy crude from countries such as Venezuela and Mexico and preparing for new environmental regulations," Cabot said.
As a result, the company said it was seeing changes to the type and availability of material with the specific quality required for the production of carbon black.
The surcharge, Cabot added, will enable it to "remain a reliable supplier of high-quality carbon black products" and meet growing demand in the region.