Supply chain of Carbon Black severely disrupted

Russia’s ongoing war in Ukraine continues to have a disrupting impact on the European industry.

The supply of Carbon Black is severely disrupted, as approximately 40 percent of Europe’s total Carbon Black capacity comes from Russia, Ukraine and Belarus.

Additionally European Carbon Black production use Russian gas as feedstock, which creates a high-risk situation with increasing sanctions against Russia.

There is not enough European-based capacity to meet the demands for manufacturers who have been depending on supplies from Russia, Ukraine or Belarus.

Furthermore, the sanction to prohibit all Russian/Belarusian road transport companies from transporting goods by road into the EU results in skyrocketing freight rates with EU-based transport companies.

Obtaining Carbon Black outside of Europe is also extremely difficult due to logistic bottlenecks and massive increases in freight rates.

Some volumes are being replaced by India, China and Saudi Arabia, against exorbitant prices. Chinese Carbon Black spot prices CIF European port are being quoted at around €2.272/t – over €800/t above April 2022 contract prices*.

* Source European Rubber Journal 20.04.2022

 

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