MARPOL 2020 VS. CARBON BLACK FEEDSTOCK
From 2020, regulation for sulphur content in fuel oil will be tightened by MARPOL 2020 Global Sulphur Limit to reduce the amount of sulphur oxide emitting from ships.
IMO – the International Maritime Organization – is the United Nations specialized agency with responsibility for the safety and security of shipping and the prevention of marine and atmospheric pollution by ships. IMO has set a global limit for sulphur in fuel oil used on board ships of 0.5%, which will take effect from 1 January 2020. The current global limit for sulphur content in fuel oil is 3.5%.
Ship owners are forced to find alternative solutions to high sulphur fuels. New regulations disrupt the residual oil markets & pricing.
Some of the Carbon Black Oils (CBO) might be used as fuel oil for ships. Ethylene tar and anthracene oil could be more attractive CBO.
The main question is: how will the carbon black feedstock market be effected, after it has already been very volatile in the last years?
It is difficult to predict the exact consequences of MARPOL 2020 but Carbon Black manufacturers are concerned about the future availability and the costs of supply.