Russia\u2019s ongoing war in Ukraine continues to have a disrupting impact on the European industry.<\/p>\n
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.<\/p>\n
Additionally, European Carbon Black production use Russian gas as feedstock, which creates a high-risk situation with increasing sanctions against Russia.<\/p>\n
There is not enough European-based capacity to meet the demands for manufacturers who have been depending on supplies from Russia, Ukraine or Belarus.<\/p>\n
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.<\/p>\n
Obtaining Carbon Black outside of Europe is also extremely difficult due to logistic bottlenecks and massive increases in freight rates.<\/p>\n
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 \u20ac2.272\/t \u2013 over \u20ac800\/t above April 2022 contract prices*.<\/p>\n
* Source European Rubber Journal 20.04.2022<\/em><\/p>\n