BERWYN, Pa.—Cabot Corp. has signaled price increases for its rubber reinforcement carbon black materials for the 2022 financial year (started Oct. 1), as the supply and demand dynamics remain supportive.
In a Nov. 9 earnings call, CEO and President Sean Keohane said the company is "finalizing" its tire customer agreements and that it "remained positive" about the outcome of negotiations "as supply remains the top priority for customers."
Demand, Keohane added, continues to be strong and is projected to be robust in all regions.
"At the same time, inventories levels are low across the value chain and global transportation flows remain challenging, all of which are placing a greater premium on local supply," he said.
In regard to the market dynamics, Keohane said tire production is expected to grow next year.
He said Cabot expects demand to continue strong in line with long-term trends, particularly with a "very robust" replacement market.
Furthermore, he said, supply/demand fundamentals remained favorable in both the Americas and Europe, as no capacity additions have come online while demand remains "pretty strong."
Expecting the markets to "remain pretty tight," Keohane said Cabot anticipated "a positive outcome from the tire agreement."
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