NPRA '08: N America TiO2 buyers mull push for cut

01 April 2008 00:41  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--Buyer sentiment for a price decrease was growing in the titanium dioxide (TiO2) market in North America, amid a lack of upward price pressure from sellers, sources said on Monday.

"The likelihood of a decrease depends on how thin producers' margins are," a buyer said at the National Petrochemical & Refiners Association (NPRA) annual meeting in San Antonio, Texas. The meeting began on Sunday and runs through Tuesday.

The buyer asked, "How much downward price movement are [sellers] willing to talk about, if any?"

Since July, TiO2 suppliers have nominated price increases totalling 17 cents/lb ($375/tonne), according to global chemical market intelligence service ICIS pricing.

However, during that period, price increases of only 3-5 cents/lb have been confirmed by buyers in the plastics-compounding market. Moreover, buyers in the much larger coatings sector have not confirmed any increases.

North American TiO2 prices were at 0.98-1.08 cents/lb.

Given US economic woes and a continued slump in the US housing market, contract price increases for 2008 are unlikely, one large-volume buyer said.

Another buyer was even more insistent that sellers should not look for price hikes until early 2009.

Major North American TiO2 suppliers include DuPont, Cristal, Kronos, Tronox and Huntsman.

For more on TiO2, visit ICIS chemical intelligence

By: Larry Terry
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