MARIETTA, Ga.—Birla Carbon will change all of its North America contract price formulas Aug. 1 as a result of changing its index oil.
The company is shifting from using U.S. Gulf Coast high sulfur fuel oil to U.S. Gulf Coast 0.5 percent sulfur fuel oil, according to a Birla Carbon news release.
The marine fuel market, which sources feedstock to make carbon black, is being affected by MARPOL 2020, Birla Carbon said. The measure, also referred to as IMO 2020, will reduce the maximum allowable sulfur content in marine fuel to 0.5 percent.
The regulation does not go into effect until Jan. 1, 2020, but the supply chain is adjusting now, the company said. The high sulfur index usually used in carbon black price formulas now does not reflect the market from which the feedstock comes, and the change is necessary to ensure a sustainable supply of carbon black.
Carbon black price formula changes outside of North America will be communicated consistent with the impacts on those markets, Birla Carbon said. Representatives will be in contact with customers.
Birla Carbon is a suppler of carbon black with applications in rubber, paints and coatings, plastics, sealants, textile fibers and others. Its footprint includes 16 manufacturing facilities and two technology centers across 12 countries.