25 October 2012 22:32 [Source: ICIS news]
HOUSTON (ICIS)--Sherwin-Williams expects the price of titanium dioxide (TiO2) to continue to decline, the US paint and coatings producer said on Wednesday.
The company has seen the industry softening over the last 12 months and recent trends indicates the commodity will continue to fall in pricing, CEO Christopher Connor said during a third-quarter earnings conference call.
"We’ve heard a number of competitors comment about their ability to eliminate 5-10% perhaps of their annual chloride titanium demand, replacement technology, innovative chemistry and other practices,” Connor said. “We have commented that we don’t see it being unreachable for us either.”
Sherwin-Williams said replacement technology will more likely find its way into the company’s next line instead of its core product line, as contractors demand consistency in its products.
The company said it is not as affected outside the US, as customers do not use tint paint as much, particularly the Latin American market prefers factory colour blending.
“That’s going to be the margins in terms of replacing it,” Connor said. “Hopefully, the bigger impact is the softening in global demand and pricing will come down.”
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