Beginning Sept. 1, 2019, or as contracts allow, Orion Engineered Carbons
will increase sales prices by $0.08/pound for rubber grade Carbon Black and $0.07/pound for specialty grade Carbon Black for all Carbon Black produced and sold in North America to recover the rapidly rising feedstock costs as well as to ensure continued reliable supply.
On all Rubber grade Carbon Black, Orion will increase current base prices by $0.04/pound.
Carbon Black Oil (CBO) is the primary raw material/feedstock used for the production of furnace grade Carbon Black in the U.S.
Costs for CBO vary based on quality and sulfur content. Recently, the demand for certain qualities of CBO has increased dramatically. This is due to IMO2020 regulations and by U.S. EPA mandates. Consequently, on all Rubber grade Carbon Black and select Standard Specialty grade Carbon Black, Orion will implement a CBO surcharge to offset the rapidly rising difference between the cost of CBO and the reference feedstock differential (High Sulfur Fuel Oil). The floor CBO surcharge shall be $0.04/pound and will be adjusted quarterly, except where significant intra-quarter swings require a quicker reaction.
For Low Sulfur Specialty grade Carbon Black, Orion will add a CBO surcharge to offset the differential versus the reference feedstock (1% Low Sulfur Fuel Oil). This surcharge is currently $0.07/pound and will be adjusted quarterly, except where significant intra-quarter swings require a quicker reaction.
For the U.S., Orion is also updating certain charges for non-standard services to better reflect actual current costs.