Huntsman seeks TiO2 price hike as market supply tightens

LONDON (CNI)--US chemicals group Huntsman is seeking to raise titanium dioxide (Ti02) prices worldwide from 1 October and warned customers to allow for extended lead times when ordering because of a tightening in market supply.

A company source told CNI the proposed hike would be 5-6% over current prices.

Huntsman said the proposed increase, which comes on top of August rises currently being implemented, reflects strong demand as well as a higher feedstock, freight and energy costs.

The planned rises from 1 October are as follows: 

Region	Increase
US - all products except FC5, TR28 and anatase grades	$0.06/lb
US - FC5, TR28 and anatase grades	$0.07/lb
Canada - all products except FC5, TR28 and anatase grades	Can$0.08/lb
Canada - FC5, TR28 and anatase grades	Can$0.09/lb
Europe	Euro130/tonne
Asia	$100/tonne
Central and South America, Middle East and Africa	$150/tonne

An independent market source confirmed to CNI that the TiO2 market was verging on tight. He said Huntsman's proposed August price rise appeared to be going through and the October hike was likely to be accepted, at least in part.

"There has been a lot of pre-buying from the consumer side - a clear indicator that the market has turned," he added.