For all shipments made on or after April 1, 2019, or as customer contracts allow, Cabot Corporation will apply a feedstock surcharge of US$0.01/lb to all carbon black products sold by its reinforcement materials segment in North America.
The market for carbon black feedstock is currently in a very dynamic phase. The majority of carbon black feedstock in North America is a byproduct of the crude oil refining process.
In recent months refineries have been responding to developments such as the decreased availability of heavy crude from countries such as Venezuela and Mexico and preparing for new environmental regulations.
As a result, Cabot is seeing changes to the type and availability of material with the specific quality required for the production of carbon black. Cabot has consequently been absorbing significant extra carbon black feedstock costs not fully reflected in fuel oil price indices.
This feedstock surcharge will enable Cabot to remain a reliable supplier of high-quality carbon black products to meet growing demand in the region. In addition, it will ensure Cabot continues to provide the highest level of service and technical support available.