New TiO2 hikes follow paths of least resistance

29 August 2008 23:51  [Source: ICIS news]

HOUSTON (ICIS news)--In a continued effort to recapture margins in healthier markets, US pigment makers DuPont and Tronox on Friday announced separate price increases for their titanium dioxide (TiO2) sold in Europe, Africa and the Middle East, effective 1 September.

Both Tronox and DuPont announced hikes of €50/tonne ($74/tonne) in all euro markets of North Africa and Central and Western Europe, citing elevated costs for energy, freight and raw materials.

DuPont also announced a hike of $120/tonne (€82/tonne) in the US dollar markets of Eastern Europe, Russia, the Middle East and Sub-Saharan Africa.

And Tronox announced an increase of $150/tonne (€102/tonne) in the Middle Eat, Africa and Eastern Europe.

US buyers say that while stronger demand in those regions provided rationale for increases there, persistently slack demand in North America offered no justification for price hikes here.

But buyers said they were sympathetic, to a degree.

"Sellers are under the gun from a profitability standpoint," a North American buyer said. Beyond the weakness in the domestic housing market, he said, "summer is typically slow - especially in July and August."

A producer said this week, however, that business in North America had begun to improve, even showing signs of a developing but delayed coatings season.

Domestic prices for North American TiO2 are 108-111 cents/lb FD (free delivered), according to data from global chemical market intelligence service ICIS pricing.

Other US TiO2 producers include Cristal Global, Huntsman and Kronos.

($1 = €0.68)

For more on TiO2,  visit ICIS chemical intelligence
To discuss issues facing the chemical industry, go to ICIS connect

 

By: Larry Terry
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