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Article: Rising Feedstock Costs Crimp Profit Margins for Carbon Black.(Statistical Data Included)
- Article from:
- Chemical Market Reporter
- Article date:
- November 8, 1999
- Author:
CopyrightCOPYRIGHT 1999 Schnell Publishing Company, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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ESCALATING CRUDE oil prices have hurt the commodity carbon black market, but producers expect oil prices to turn around by the first quarter of 2000 and lessen the strain on margins. However, price increases for carbon black have not fully offset rising feedstock costs, and they may delay global expansions.
Crude oil costs have climbed sharply this year. In mid-December 1998, the spot price of West Texas Intermediate-Cushing (WTI) dropped to lows of $10.95 and $10.86 per barrel in the wake of an inability of producers in Saudi Arabia, Mexico and Venezuela to limit their output, according to the US Department of Energy. Spot prices for WTI are currently $22.38 per ...