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Orion announces carbon black price increase and capacity reduction for US

On Friday, Orion Engineered Carbons announced two actions:

1, A price increase of five cents per pound on all rubber carbon blacks sold in the US. The increase is effective September 1, 2017 or as contracts allow. On the price increase, Orion’s Vice President, Rubber Carbon Blacks Business Line, Christ Erickson, said, “This increase in pricing and the investments in production are necessary to ensure our long term supply capability.”

2. In addition, Orion announced the idling of one Rubber Carbon Black production line at its Orange, Texas facility, effective at year end 2017. The press release stated, “Orion is taking this action because current price levels of Rubber Carbon Blacks in North America do not adequately address the costs of maintaining this production capacity.” Orion did not publicly announce the amount of capacity being removed.

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