The Carbon Black market reflects a contradiction of several aspects.
A high volatile oil market, with a significant drop of the oil price in November 2018 with as controversion an increase of carbon black feedstock prices, which forces producers to increase carbon black base prices.
The correlation of indexed prices, compared to a individual fixed index and the carbon black feedstocks show a bigger spread.
On the controverse of increasing carbon black feedstock prices we have a significant slowdown of the economy driven by the automotive industry. Automobile manufacturers are facing difficulties with vehicle registrations due to the Worldwide Harmonised Light Vehicle Test Procedure (WLTP), which classifies emissions and fuel consumption. Additionaly the upgoing trend for electric cars might influence the consumption of carbon black.
Another factor which might start influencing Carbon Black prices in 2019 is MARPOL (International Convention for the Prevention of Pollution from Ships), which limits sulfur content in marine fuels and might result in limited availability of Low Sulfur Fuel Oil 1%, which is also used to produce Carbon Black.
We expect 2019 to be full of opportunities and challenges.
Although the dynamic changes in the market are a big challenge for all players, PentaCarbon GmbH is looking forward extending successful partnerships with its’ customers.
If you have any questions or inquiries, please do not hesitate to contact us.
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