30 April 2013 20:18 [Source: ICIS news]
LONDON (ICIS)--Titanium dioxide (TiO2) demand in Europe is expected to stabilise before the end of the first half of 2013 and will likely increase during the second half, a major producer said on Tuesday.
"The price decreases in 2012 were the result of destocking, which has now stopped, and so I think demand will stabilise during the first half of the year," the producer said at the Barcelona TiO2 summit.
It added that global inventory levels have fallen by 20 days since the end of 2012, which has helped reduce length in the market.
Earlier, inventory levels had been enough for about 100-120 days, up to three times higher than 40, what is regarded as a normal level.
However, "feedstock supply will need significant investment to maintain price and supply stability", the seller added.
European TiO2 prices dropped from €3.00-3.40/kg ($1.79-2.03/lb) FD (free delivered) NWE (northwest Europe) in March 2012 to €2.35-2.50/kg FD NWE in April 2013.
The conference runs from 30 April to 2 May.
($1 = €0.76)
Follow Janos Gal on Twitter @janosgalICIS
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