At the Carbon Black World conference in Rome, Charles McGovern, CEO of INSCX EXCHANGE (Integrated Nano-science and Commodity Exchange) delivered a paper in which he introduced a new commodity exchange for nano-materials including carbon black. The paper argued that a commodity exchange mechanism similar to those used in the metals, energy, oil, grains, and polymers industries would benefit carbon black sellers and buyers alike by increasing transparency and efficiency.
According to this market snapshot, the exchange has encountered some rough going in getting carbon black suppliers on-board.
Here is an excerpt:
One bright spot during the European session proved Furnace Blacks. During the session a Block buyer of various Furnace Blacks surfaced in the form of the exchange specialist NCM/Stekram seeking offers in 50 Metric Ton (MT) lots. Furnace Blacks (FBs) had earlier marked down but remained well-bid at the European close.
Brokers on INSCX exchange were in the market earlier today for Block size in various Carbon Blacks. Outside the US area though it remained a protracted process attempting to deal. By all accounts calls were made to India, Iran, Ukraine, Russia, but according to the specialist Broker; “We had to wait for the United States to open before we could quote a firm price to our customer, ridiculous in this day and age. Do suppliers want the business or not? Bear in mind price transparency, trade flexibility, inspection, insurance, the instant quote and reporting are features of commercial reality accepted decades ago as by mature raw materials markets. To achieve anything in metals, grains, rubber, polymers, oils nanomaterials suppliers will sooner or later be expected to make available what they supply according to the trade practice and conventions of these sectors, where buyers get the efficiency, trade flexibility and assurances they demand”, cited one dealer at NCM.
Not sure how an exchange of this type would work for many of the largest tire customers given the lengthy and extensive preapproval process required for supply contracts.