Tokai Carbon increases carbon black prices in North America
Tokai Carbon Co. recently announced its intent to increase the carbon black prices for its products manufactured in North America. The company says the primary reason for the price increase are growing costs.
The decision of Tokai as a large virgin carbon black producer is likely to affect the market price of recovered carbon black from tire pyrolysis as well.
Tokai Carbon Co. Ltd. (TYO:5301) had previously announced on April 12 that it will be implementing a price hike on shipments of all carbon black grades from its domestic Japanese plants, including export shipments. The price increase is set to come to $0.25 per kilogram ($250 per tonne), which will be put into effect starting with shipments made on May 1. Tokai Carbon has now scheduled the price increase for the middle of July 2021. Now, Tokai’s carbon black will add another $0.15 per kilogram ($150 per tonne), according to Tokai’s recent statement.
The news followed after the recent price increase in Japan on May 1, 2021. In its press release from April 12, Tokai said:
“The escalating raw material oil price of carbon black causes the significant cost increase. This increase is difficult to absorb only by our production cost reduction, measures and the price increase is necessary to ensure Tokai Carbon to maintain the stable supply of our high-quality products and services. We would appreciate your understanding to ensure Tokai Carbon to maintain the stable supply of our high-quality products and services with top priority.”