Kronos proposes Europe TiO2 price hike on costs

14 October 2008 19:08  [Source: ICIS news]

HOUSTON (ICIS news)--Price-hike initiatives for titanium dioxide (TiO2) continued to stack up in Europe as US pigment maker Kronos announced increases on Tuesday, effective on 15 October.

Kronos, among the world's largest producers of TiO2 pigment, announced increases of €150/tonne ($203/tonne) in Europe and a $120/tonne hike in eastern Europe and Russia.

On Monday, DuPont also announced similar price increases in Europe, Africa and the Middle East.

"The need to restore margins in the TiO2 industry puts a higher priority on pricing and a lower priority on volumes ... in the seasonally weaker fourth quarter," a producer said.

"Demand in Europe has slowed down," he said, "but its level remains comparable to last year, unlike in North America, where demand is weaker, for obvious reasons."

Supply-side rationale has consistently focused on margin pressure from elevated costs in raw material and transportation.

In North America, TiO2 contract prices are in the range of 104-114 cents/lb ($2,293-2,513/tonne) FD (free delivered), according to data from global chemical market intelligence service ICIS pricing.

Other TiO2 producers include Cristal, Tronox and Huntsman.

($1 = €0.74)

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