Europe TiO2 moves up a further €35/tonne

17 October 2008 23:59  [Source: ICIS news]

LONDON (ICIS news)--Prices in the European titanium dioxide (TiO2) market saw further upwards movement of €35/tonne ($48/tonne) this week, industry players said on Friday.

The latest range was assessed at €2.18-2.37/kilogramme FD (free delivered) NWE (northwest Europe) from €2.14-2.37/kg FD NWE last week, according to global chemical market intelligence service ICIS pricing. 

 

Initially, consumers were adamant that they would not accept further hikes in this, the fourth consecutive month of targeted increases, according to a producer.

However, the unity of sellers targeting similar pricing ideas had thwarted consumers’ ability to avoid increases, according to a buyer.

Despite the hikes, producers were not content with the prices achieved, as many had initially targeted €50/tonne on rocketing feedstock and soaring energy costs.

“The industry has been on its knees for the past two or three years,” said a producer. “We’ve taken a major loss.”

Producers Tronox, Kronos and DuPont had already begun looking to the next increment and had formally announced further €150/tonne hikes for European business.

Other sellers were also targeting hikes between €80-150/tonne.

“We need to reinforce these higher prices for the coming quarters,” said another supplier, “the hikes are 90% driven by feedstock and upstream costs, we simply can’t afford to shoulder anymore.”

Buyers however believed that the latest announcements were unjustified and unrealistic on top of other increases.

“There are other options. Despite what is quoted, the prices are negotiable and discounts are offered” said a consumer.

"The producers are beginning to lose credibility, if you totalled up all the hikes that they claim they have achieved, the price would be over €3,000/tonne, which it certainly isn’t.”

For more on TiO2 visit ICIS chemical intelligence

To discuss issues facing the chemical industry go to ICIS connect

By: Stephanie Wilson
+44 20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly