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Article: Carbon black outlook marred by high costs for oil, natural gas. (Plastics).
- Article from:
- Chemical Market Reporter
- Article date:
- January 27, 2003
- Author:
CopyrightCOPYRIGHT 2003 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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THE MARKET for carbon black improved in 2002 after a weak 2001. Producers and analysts expect further improvement in 2003, provided the economy stays healthy, but the run-up in energy prices is crimping margins and raising production costs. Carbon black producers expect to pass on at least part of these increases, but they are concerned that high oil costs could also slow the economy and weaken demand for tires, the main market for carbon black.
James P. Berresse, president of Columbian Chemicals Company, says that heading into 2002, the company expected North America to be a tough business environment with difficult market conditions. "Our expectations were ...