Soaring Carbon Black prices due to North American environmental laws

The price of virgin Carbon Black is rising sharply. Two of North America’s biggest manufacturers recently raised their base prices for all north American markets – Birla Carbon increases the base price by $170 per metric tonne and Cabot Corporation will apply a feedstock surcharge.

“Stricter environmental laws and emission standards are affecting the Carbon Black industry, both in terms of higher prices and reduced access to the materials. Since we are returning already-produced Carbon Black to the industry, Enviro’s production is not affected by the emission standards,” says Thomas Sörensson, Enviro CEO.

The demand for Carbon Black is increasing globally, but in North America the supply is no longer keeping up with demand. At the same time, the interest for recovered Carbon Black is growing, the market is estimated to be worth close to $500 million in 2023.

“The higher pricing for virgin material benefits the profitability of Enviro’s recovered material since our raw material costs are low. It’s clear that industries using carbon black in their production process soon will have to turn to other alternatives, both for economic and environmental reasons.”

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