Japan’s ISK announces $200/t Ti02 Q4 hike on costs

05 September 2008 10:08  [Source: ICIS news]

SINGAPORE (ICIS news)--Japan's Ishihara Sangyo Kaisha (ISK) announced on Thursday a $200/tonne price increase for fourth-quarter titanium dioxide (TiO2) in Asian markets, on the back of higher energy and service costs, industry sources said on Friday.

 

The price hike, effective 1 October, is the fourth such increase this year.

 

The company last announced a $150/tonne price increase in June, citing similar reasons.

 

“Crude prices have fallen in recent weeks but are still at very high levels. Ocean freight has also almost doubled compared to last year,” a company source said on Friday.

 

“We have to increase our price to ensure our stable supply of TiO2 for our customers,” he added.

 

ISK imports raw materials from countries such as Australia and India.

 

Asia’s demand for TiO2 had been largely stable in the first nine months of this year but it remained to be seen if buyers would accept the full price increase amid concerns over the global economy, industry sources said.

 

Other TiO2 producers such as DuPont Titanium Technologies have also announced similar price hikes effective this month.

 

ISK's plants at Yokkaichi, Japan, and Singapore, have a total annual TiO2 capacity of 220,000 tonnes.

 

For more on TiO2 visit ICIS chemical intelligence

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ICIS Copyright © Reed Business Information 2009

Author: Ng Hun Wei
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