19 February 2013 23:15 [Source: ICIS news]
HOUSTON (ICIS)--North American titanium dioxide (TiO2) buyers on Tuesday panned a producer’s announced effort to get a second-quarter price increase within the tepid and oversupplied domestic pigment market.
Kronos said this week that it plans to raise its North American TiO2 prices by 10 cents/lb ($220/tonne, €165/tonne), effective 1 March. Most buyers have 90-day price protection, meaning increases would not likely be implemented until 1 June.
The company also announced plans to increase its prices in Europe by at least €200/tonne and by $250/tonne in Europe’s dollar markets and other regions outside Europe and North America.
“Dead on arrival,” one buyer said when asked about the North American initiative’s chance of success.
“My take is that they are trying to stop the decline, and that prices will not actually increase,” said another buyer.
“There is no reason for an increase now,” another buyer said. “I think they are just trying to make it interesting.”
Although first-quarter decreases of 10-13 cents/lb have been heard, the first-quarter range has not yet been settled. Prices remain at the fourth-quarter level of $1.55-1.70/lb, as assessed by ICIS.
Although most producers remain reticent, most sources expect price-hike efforts to become more prevalent in the second half of the year.
A buyer also said it believes producers are sitting on three to four months of inventory. Producers have neither confirmed nor denied this assertion.
Other North American TiO2 producers include Tronox, DuPont, Cristal and Huntsman.
($1 = €0.75)
For more on Kronos, visit the ICIS Plants & Projects database
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