Europe TiO2 rises €50/t on upstream to new highs

15 August 2008 23:59  [Source: ICIS news]

LONDON (ICIS news)--The European titanium dioxide (TiO2) market has seen further price hikes of €50/tonne ($74/tonne) in August business on the back of rising upstream rutile and ilmenite costs, industry participants said on Friday.

The hikes brought the price range up to an unprecedented €2,090-2,370/tonne FD (free delivered) NWE (northwest Europe) according to global chemical market intelligence service ICIS pricing. 

Industry sources said increasing upstream costs and the recuperation of lost margins over the last few quarters were the motives behind the hikes.

A contract buyer also confirmed that energy surcharges were being enforced by producers. The source said that its supplier had enforced “a surcharge of €80/tonne without negotiating”.

A production source stated that it “could not maintain its position any longer” and that the surcharges were necessary to recoup large losses made over the last-quarter's contract prices.  

Fourth-quarter contract prices were expected to rise €80-100/tonne, according to market players.

Buyers expressed their disappointment and were hoping for a rollover based on the decline of the crude market but it seemed “rises were inevitable”, according to one consumer.

With no further developments regarding the 80,000 tonnes/year Solondo rutile dredge collapse in Sierra Leone in late July, many players said this would further tighten the short market.

($1 = €0.67)

For more on titanium dioxide visit ICIS chemical intelligence
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By: Stephanie Wilson
+44 20 8652 3214

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