20 June 2008 10:37 [Source: ICIS news]
SINGAPORE (ICIS news)--DuPont Titanium Technologies has proposed a price increase for titanium dioxide (TiO2) sold into Asia for the second time this month due to increased energy and services costs, the company announced on Friday.
Effective 15 July, or as permitted by contract, the US-based company will increase prices for all TiO2 grades in Asia, excluding ?xml:namespace>
This increase is in addition to those implemented earlier and the one announced on 5 June, the company said.
"The costs of energy and related goods and services have risen by 10% in a single week, forcing us into the unprecedented position of imposing a second price increase within two weeks," said DuPont Titanium Technologies global business director Ian Edwards.
"The rate of change in energy costs far exceeds the rate of change in TiO2 prices and the gap between the two continues to expand rapidly in spite of the price actions taken to date."
In addition to the increase in energy costs, a major ore supplier had declared force majeure, resulting in increased costs to DuPont to keep TiO2 production at current levels, the company said.
Buyers said the second consecutive price increase would be hard to pass on, despite strong demand, as they were already pressured by the earlier increases.
($1 = CNY6.88)
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