Cabot assesses impact of EU sanctions on Russian carbon black exports

　　According to a report from the "European Rubber Journal," Cabot Corporation recently conducted a global market assessment and concluded that the EU will impose sanctions on the export of carbon black from Russia next year. However, the impact on the company's global market, including China, is expected to be minimal.

　　Mr. Sean Keohane, President and CEO of Cabot Corporation, stated, "Currently, Russia's exports of carbon black to Europe have decreased by about 50% compared to before the invasion of Ukraine." Additionally, Keohane added during the third-quarter financial report conference call on August 5th that the EU's new round of sanctions on Russian carbon black will take effect at the end of June 2024, at which point Russia's exports to Europe "could be considered close to zero." Other destinations for Russian carbon black exports include Turkey and the Middle East.

　　Keohane believes that Turkey is a "fairly significant tire production hub," and there are no carbon black production factories in the country.

　　He noted that Russian carbon black is also entering the Chinese market, but it will not have "any substantial impact" on Cabot's competitive position in China. Keohane commented, "The Chinese market has always had its own competitive landscape, and imports of carbon black from Russia will not fundamentally change this situation. Even if hundreds of thousands of tons of carbon black flow into a market with a capacity of approximately 7 or 8 million tons, it will not significantly alter the market dynamics there."