N America paper market sees new TiO2 surcharges

13 October 2008 23:16  [Source: ICIS news]

HOUSTON (ICIS news)--US pigment maker Cristal announced a 4 cent/lb surcharge on titanium dioxide (TiO2) for the North American paper market on Monday, but a buyer said the segment was not well prepared to deal with another price increase.

"The paper industry is sliding, and it has been for some time," the buyer said, adding that within the past two months, he accepted price increases that took anatase TiO2 to a range of 105-107 cents/lb ($2,315-2,359/tonne, €1,713-1,746/tonne).

Cristal said its 4 cent/lb surcharge would be implemented on 1 November to offset cost increases for fuel and raw material costs.

The measure adds to similar surcharges announced recently by other US producers.

On 1 October, DuPont Titanium Technologies announced a 4 cent/lb energy surcharge for the North American paper market for 1 November. One day later, Tronox announced an identical surcharge effective on 15 October.

Most producers implemented similar surcharges earlier this year.

Troubled pigment maker Tronox, for example, announced a 6 cent/lb energy surcharge for 1 August and a 4 cent/lb energy surcharge for 1 July on material sold into the North American paper market.

In other pricing news, DuPont announced on Monday a proposed price increase of €150/tonne in western and central Europe and North Africa effective on 15 October, and a $120/tonne (€89/tonne) hike in Eastern Europe, Russia, the Middle East and Sub-Sahara Africa regions.

In North America, TiO2 contract prices were in the range of 104-114 cents/lb FD (free delivered), according to global chemical market intelligence service ICIS pricing, but were poised to increase by an average of 5 cents/lb in October.

Other US producers of TiO2 include Cristal, Tronox, Huntsman and Kronos.

($1 = €0.74)

For more on TiO2 visit ICIS chemical intelligence
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By: Larry Terry
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