HOUSTON—Orion Engineered Carbons S.A. will increase sales prices in North America for rubber grade carbon black and specialty grade carbon black as of Sept. 1 or as contracts allow.
Rubber grade carbon black sales prices will rise by 8 cents per pound and specialty grade will rise by 7 cents per pound for all carbon black produced and sold in North America, according to an Orion news release.
The price increase is necessary to recover rising feedstock costs and ensure continued reliable supply, Orion said.
The firm will increase current base prices on all rubber grade carbon black by 4 cents per pound, to secure increased demand while maintaining quality and sustainable supply, Orion said. Demand for certain qualities of carbon black oil, the primary raw material used for furnace grade carbon black in the U.S., has increased because of International Maritime Organization 2020 regulations and U.S. Environmental Protection Agency mandates.
Orion's CBO increase will offset the differences between the cost of CBO and the reference feedstock differential of high sulfur fuel oil, the firm said. The surcharge of 4 cents per pound will be adjusted quarterly, with the exception of swings that call for quicker reaction.
Orion will add a CBO surcharge of 7 cents per pound for low sulfur specialty grade carbon black to offset the differential compared to the reference feedstock of 1 percent low sulfur fuel oil. This surcharge also will be adjusted quarterly or when swings require quicker reaction.
In the U.S., Orion also is updating charges for non-standard services to better reflect actual current costs, with an updated list available on Orion's website at www.orioncarbons.com.
Orion produces carbon blacks including specialty gas blacks, acetylene blacks, furnace blacks, lamp blacks, thermal blacks and others. It runs 14 global production sites and has about 1,450 employees.