Orion to increase prices for rubber carbon blacks from South Korea

Orion Engineered Carbons S. A., a worldwide supplier of carbon black, announced that it will implement base price increases of up to 9 % on all rubber black grades made in South Korea, and sold in the Asia-Pacific market, effective from 1 December 2016.

According to the company, tightening environmental laws and regulations in South Korea are adding substantial amounts to Orion’s operating cost base. This is aggravated by unfavourable developments in the feedstock market; over the last months Orion has had to pay significantly more for required high quality carbon black oil (CBO) due to a very tight Korean fuel oil market. Orion has implemented intensive cost reduction campaigns to absorb cost increases, but these efforts are no longer adequate to deal with the challenges it faces.

This price increase is independent from the underlying movements of the Singapore fuel oil index which continues to be used as a reference for price adjustments related to oil price changes which Orion negotiates with its Korean customers on a regular basis, says the company.