Cabot Corporation to Increase Prices in North America for Carbon Black Products Sold by its Reinforcement Materials Segment
Concurrently Implementing Feedstock Surcharge
BOSTON – June 16, 2022 – Cabot Corporation (NYSE: CBT) will increase prices for all carbon black products sold by its Reinforcement Materials segment in North America, effective for all shipments on or after August 1, 2022, or as customer contracts allow. Price increases will range from $200/ton to $400/ton, depending on product and packaging type.
These price increases are necessary to address significantly higher costs to provide reliable supply of carbon black amidst rising demand from increased production of tires and industrial rubber products in the region. Cabot is making significant investments in its manufacturing network to maintain and enhance equipment reliability to meet strong customer demand even at high plant utilizations. At the same time, Cabot is investing in projects to meet requirements related to the U.S. Environmental Protection Agency’s (EPA) national enforcement initiative to control air emissions from carbon black manufacturing facilities. The cost and complexity of Cabot’s manufacturing operations are increasing substantially as these large and highly technical systems are constructed and put into service.
Cabot will also increase the feedstock surcharge applied to all carbon black products sold by its Reinforcement Materials segment in North America, effective for all shipments on or after August 1, 2022, or as customer contracts allow. This adjustment is necessary to reflect ongoing changes in the North American refining industry due to regulatory changes, residual impacts from the COVID-19 crisis, and changes in crude oil inputs to refineries.
Furthermore, due to the extraordinary rise in oil prices and increased borrowing costs, payment terms extended to North America Reinforcement customers will be limited to a maximum of thirty days, effective for all shipments on or after August 1, 2022, or as customer contracts allow.
Collectively, these actions will enable Cabot to continue to provide its customers with industry-leading levels of quality, sustainability, and security of supply.
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, engineered elastomer composites, inkjet colorants, masterbatches and conductive compounds, fumed silica and aerogel. For more information on Cabot, please visit the company’s website at cabotcorp.com.
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release involving the Company that are not statements of historical fact are forward-looking statements and are subject to risks and uncertainties inherent in projecting future conditions, events, and results. For a discussion of the risks and uncertainties that could cause results to differ from those expressed in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K.