Titanium dioxide

Titanium dioxide (TiO2) producers are trying to lift global prices because of hikes in raw material costs, but lacklustre demand is making several players think a rollover could be likely for Q2 contracts.

In Europe TiO2 producers are targeting increases of about €0.20–0.30/kg, while North American suppliers are mulling a 15 cents/lb rise for the second quarter because of higher costs for upstream ilmenite and rutile.

Sellers in all regions are bullish. In the first quarter strong buyer resistance meant sellers were unable to achieve the price hikes needed to keep up with rising feedstock costs. First-quarter TiO2 prices in Europe, the US and Asia rose by €0.05–0.10/kg, 10 cents/lb and $200–300/tonne respectively.

However, resistance from buyers is expected to persist for future price hikes, as they cite difficulty in passing on such increases to end-users amid slowing demand because of the unstable macroeconomic situation.

Also, the major end-markets for TiO2 in the US – paints and coatings and plastics compounding – continue to pursue the use, where acceptable, of cheaper sulphate material from China, also weakening the position of domestic producers.