News from Notch Consulting, Inc.

March 12, 2011

Columbian Chemicals raises carbon black prices

Filed under: Carbon Black — Notch @ 11:42 am

On March 11, Columbian Chemicals Company announced that it will increase prices for carbon black by up to 14% depending on grade. The increase covers both rubber carbon blacks and industrial carbon blacks. All shipments not currently covered by contract are subject to this price increase. The increase was necessitated by a combination of conditions including market environment, raw material costs, increasingly stringent regulatory requirements and Columbian’s commitment to reinvestment in its carbon black business.

Here are the press releases:
Rubber Blacks
Industrial Blacks

As of Friday, March 11, prices for Gulf Coast #6 residual fuel oil had risen 21% since January 1. It seems that fuel oil prices will continue to trend upward in coming months, driven in part by the Japanese tsunami, according to Platts.

A tsunami triggered by a large earthquake that struck northeast Japan Friday and prompting the country’s power operator to shut seven nuclear units will drive utility-grade low sulfur residual fuel oil (LSFO) prices higher, sources said Friday.

While no immediate price effect was said to be seen, “We expect a lot of low sulfur demand [from Japan] for power generation in the next few months,” a a trader in US markets said.

“I do not think anyone has a very clear picture yet, but with the [nuclear] plants down, they will burn fuel oil… and get it from wherever they can,” a second trader said.

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