Plan to bridge Ti02 price gap

28 January 2002 00:00  [Source: ACN]

Titanium dioxide (Ti02) producers are looking to bridge the gap between Asian and US and European contract prices in Q2.

Prices in Asian markets have languished at US$1600-1700/tonne cfr SEA and US$1750-1800/tonne cfr Korea/Japan since Q4 2001, while prices in the US have been higher at US$2000/tonne cfr US. Prices in Europe have been around US$1800/tonne cfr Europe.

'Buyers are resisting moves to hike prices,' admitted one producer.

Several buyers were reported to be looking for an extension of the Q1 price while others were eyeing a reduction.

A few Q1 contracts have reportedly been settled at US$1600-1800/tonne cfr Asia.

Producers were banking on a recovery in demand in Q2 to support their efforts to raise prices.

Demand in South Korean markets has returned which is a good sign, said the first producer, although other markets in Asia have yet to show signs of a recovery.

'But we believe most customers have finished destocking,' said a second producer. He added that TiO2 prices began softening since Q3 2001, but the weakness has now been arrested.

The average price in Q3 was US$1850-1950/tonne cfr Asia.

Buyers and sellers have returned to settle contracts on a quarterly basis.

Both sides had resorted to monthly settlements in Q4 2001 because of market uncertainties which had followed the US-led attacks on Afghanistan (ACN 15 Oct, p31).

ISK Singapore is due to shut down its 45 000 tonne/year plant in Tuas, Singapore, on 1 April for 20 days.

< previous article(ICIS Chemical Business podcast November 2, 2009)

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