05 May 2011 17:09 [Source: ICIS news]
LONDON (ICIS)--European titanium dioxide (TiO2) buyers have expressed doubts about their ability to negotiate prices that would be lower than DuPont's target of a €250/tonne ($373/tonne) increase, effective 1 June or as contracts allow, sources said on Thursday.
Other European TiO2 manufacturers are also targeting price increases similar to DuPont's because of long-term tightness in the market, which has resulted from low capacity and shortages of upstream ilmenite and titanium ore.
However, other producers have not yet made any official announcements about proposed price increases.
The amount DuPont is looking to receive surprised several customers, who had been expecting increases of around €200/tonne. But buyers acknowledged that manufacturers are currently in a comfortable position.
Buyers therefore expect the full €250/tonne to be pushed through, especially considering the current worries over availability and increasing demand as the downstream construction sector enters its traditional peak season.
DuPont, the world’s largest titanium dioxide (TiO2) manufacturer, is also targeting a $500/tonne increase in the price of TiO2 in eastern Europe, the Middle East and sub-Saharan Africa.
Sources with DuPont were unavailable to comment, but other producers said they are confident that any proposed price increases would go through in full because of the current pressures in the market.
Europe TiO2 is currently assessed at €2,500-2,750/tonne FD (free delivered) NWE (northwest Europe).
($1 = €0.67)
For more on TiO2 visit ICIS chemical intelligence
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