Crain News Service report
KINGWOOD, Texas (Aug. 12, 2015) — Orion Engineered Carbons L.L.C. said it will increase prices on all carbon blacks sold by its Rubber Carbon Black Business segment, effective Sept. 15.
The firm will increase prices by 7 percent in the Asia region; 8 percent in its Europe, Middle East and Africa region; 6 percent in North America; and 12 percent in South America. Orion said further adjustments may be applied for certain special rubber black grades. Invoice prices will be adjusted as allowed by contract or current agreement.
“These increases will allow Orion to maintain the service level and supply of high quality carbon blacks to its customers worldwide,” the firm said in a news release. “Orion is committed to an ongoing review of costs and market issues and will inform customers regularly of changes.”
Orion said it has experienced increased feedstock costs relative to the reference indices commonly used in the pricing of carbon black for the last several quarters. It projects cost differentials to continue because of increasing demand for these raw materials and lower availability of feedstocks of suitable quality.
The Kingwood-based company said it has also experienced extreme currency volatility in Brazil. According to the firm, the Brazilian real has depreciated more than 33 percent against the U.S. dollar, which requires larger increases for products sold in the South America region.
The global supplier of carbon black has 1,360 employees and 14 global production sites.
This report appeared in Rubber & Plastics News, an Akron-based sister publication of Tire Business.