Cabot Corporation to Implement Feedstock Surcharge for Rubber Carbon Black Products in North America
BOSTON – March 11, 2019 – Effective for all shipments made on or after April 1, 2019, or as customer contracts allow, Cabot Corporation will apply a Feedstock Surcharge of $0.01/pound to all carbon black products sold by its Reinforcement Materials segment in North America.
The market for carbon black feedstock is currently in a very dynamic phase. The majority of carbon black feedstock in North America is a byproduct of the crude oil refining process. In recent months refineries have been responding to developments such as the decreased availability of heavy crude from countries such as Venezuela and Mexico and preparing for new environmental regulations. As a result, Cabot is seeing changes to the type and availability of material with the specific quality required for the production of carbon black. Cabot has consequently been absorbing significant extra carbon black feedstock costs not fully reflected in fuel oil price indices.
This Feedstock Surcharge will enable Cabot to remain a reliable supplier of high-quality carbon black products to meet growing demand in the region. In addition, it will ensure Cabot continues to provide the highest level of service and technical support available while also offering innovative products to its customers.
ABOUT CABOT CORPORATION
Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company, headquartered in Boston, Massachusetts. The company is a leading provider of rubber and specialty carbons, activated carbon, inkjet colorants, cesium formate drilling fluids, fumed silica, and aerogel. For more information on Cabot, please visit the company’s website at: http://www.cabotcorp.com.
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in the press release regarding Cabot's business that are not historical facts are forward looking statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K.
Contact:
Erin Caron
Corporate Communications
(617) 342-6257
Jennifer Shearman
Global Marketing Manager
(617) 342-6180