The news is important to know for tire pyrolysis companies focused on carbon black production. In May 2017, Rubber News reported about increasing carbon black prices in Europe. This article highlights price adjustments by large Russian carbon black manufacturer.

Yaroslavl Carbon Black, Russian carbon black producer who is also known as JSC Yaroslavskiy Tekhnicheskiy Uglerod, announced about changes to its prices for all grades of carbon black starting from the beginning of July. The letter addressing Yaroslavl’s customers explains that the company’s pricing policy is affected by the low oil prices and external pressure on carbon black feedstock prices. The letter said:

“The price pressure has clearly shown that carbon black pricing formulas based solely on 1% fuel oil index are no longer valid and do not cover both fixed and variable costs of production in the long term.”

According to the company, the new pricing system is expected to stabilize volatile prices for carbon black feedstock. The new system implies that the discount or surcharge computed via the feedstock index would be EUR 45 in case Brent crude oil price falls down below USD 40 per barrel. If the oil price fluctuates between USD 40-60 per barrel, the surcharge would drop to EUR 30. At the same time, Yaroslavl’s clientele is expected to pay no surcharge if Brent oil prices are between USD 60-110 per barrel. Furthermore, the company will provide its customers with a discount to the feedstock index, if Brent’s price exceeds USD 60-110 range. Namely, if the price is USD 110-130 per barrel or it goes beyond USD 130, discounts of EUR 30 or EUR 45 respectively will be applied to the carbon black price index. According to the company, price adjustments stemming from the new pricing system will be applied together with standard feedstock index-related adjustments.

Current annual output of Yaroslavl Carbon Black plant, located north-east of Moscow, amounts to 350,000 tons. The output is used primarily for tire and rubber industries. According to the company, some 4/5 of its products are exported to Europe: to Germany, Italy, France, Hungary and Poland.

Article source: Rubber News, Yaroslavl Carbon Black