Cabot believes EU sanctions have limited impact on Russian carbon black exports

Recently, Cabot said that based on its assessment of the global market, the EU plans to impose sanctions on Russian carbon black exports next year. However, the impact of this measure on Cabot and global markets including China will be relatively limited.

Cabot President and CEO Kirshane pointed out that Russia's current carbon black exports to Europe had been reduced by about 50% before the invasion of Ukraine. In addition, it is understood that a new round of sanctions that the EU plans to take effect at the end of June 2024 will almost cut Russia's carbon black exports to Europe to zero. However, Russia's carbon black still has other export destinations, including places such as Turkey and the Middle East. Turkey is considered to be an important tire production base, but Corchan said that China does not have carbon black production plants, so there is a high demand for carbon black.

In addition, Kirshan mentioned that although Russian carbon black is gradually pouring into the Chinese market, this will not have a substantial impact on Cabot's competitive position in China. He emphasized that the Chinese market has always had a unique competitive landscape, and the amount of carbon black from Russia is relatively small and cannot change the market landscape.