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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