Phelps Dodge US unit ups Asia carbon black prices

www.forbes.com Reuters, 03.06.03, 11:50 AM ET

NEW YORK, March 6 (Reuters) - Columbian Chemicals Co., a unit of the world's largest publicly traded copper producer Phelps Dodge Corp. (nyse: PD - news - people), said Thursday it raised prices of rubber carbon black grades sold in Asia by 15 percent, effective April 1, due to raw material cost increases. Columbian Chemicals said that, despite its efforts to reduce costs and enhance productivity, raw material costs had risen to the point where the marketplace had to share the burden. "Feedstock costs, which already were near historic highs at the end of 2002, have continued to rise during the first quarter of 2003, as reaction to the ongoing oil workers' strike in Venezuela and speculation over a possible war with Iraq," a Columbian Chemicals statement said. Carbon black, which makes up more than 20 percent of the weight of a car tire, is used to reinforce and protect tires, as well as to turn them black. It is also used in inks, paints, plastics and coatings. Columbian Chemicals is based in Marietta, Georgia, and owns and operates 12 carbon black facilities in Brazil, Canada, England, Germany, Hungary, Italy, South Korea, Spain and the United States. In Nov. 2002, Phoenix, Arizona-based Phelps Dodge said that Columbian Chemicals had been contacted by U.S. and European antitrust authorities jointly probing alleged price-fixing for carbon black. European authorities were reviewing documents at several Columbian Chemicals facilities in Europe and U.S. authorities have contacted Columbian Chemicals' headquarters in Marietta, Phelps Dodge said at the time. Phelps Dodge added that it and Columbian Chemicals will cooperate fully with the joint investigation. No charges of wrongdoing have been filed against the company or any of its employees, it said.