Asia
Asia’s TiO2 prices were stable-to-soft in the past few months, weighed down by the persistently sluggish downstream demand given the weak macroeconomic condition.
Furthermore, competitively-priced materials of Chinese origin were said to be available in the market.
Regional TiO2 producers are eyeing price hikes for the second quarter of 2013 in consideration of their squeezed margins following price declines in the previous months.
Buyers, on the other hand, may insist on rollover prices in consideration of limited demand recovery for their finished products.
Updated to mid-February 2013
Europe
Titanium dioxide (TiO2) demand was weaker than expected during the three months from mid-November to mid-February because buyers have been unwilling to purchase TiO2 in anticipation of falling prices.
It is unlikely demand will pick up in the coming months because many consumers are unwilling to commit themselves to large quantities, as derivative demand remains poor.
Demand from the decorative paint, automotive, plastics and construction sectors is weak.
Most producers are under pressure to get rid of growing inventories in their warehouses. A number of producers have 80-100 days' worth of product in storage that they are struggling to sell. As a result, TiO2 sellers have been offering lower prices in an effort to offload stocks.
Producers have also reduced operating rates to balance supply with demand. TiO2 operating rates are at 70-80% of nameplate capacity on average in Europe.
Producers are optimistic about the future, and hope that demand will pick up from March, when buyers generally begin to restock for the spring and summer seasons.
However, it might not happen this year because Europe is oversupplied and demand is likely to remain weak for the rest of the year.
Updated to mid-February 2013
US
North American TiO2 prices weakened during the three-month period ending in mid-February, with fourth-quarter market prices falling by an average of 20 cents/lb ($441/tonne) on long supply and seasonally weak demand.
At the end of the reporting period, US pigment demand was near parity with year-ago levels but could improve by at least 10% year over year as the paint-making season nears, sources said. However, TiO2 substitution rates could reach 20%, architectural coatings makers say, holding back some typical demand for the most common domestic pigment.
Sulphate-route material from Asia gained a foothold during the previous steep run-up in prices for US-produced chloride-route TiO2.
Demand from most other coating markets was anticipated up slightly from the previous year.
Though some first-quarter weakness has surfaced, most buyers anticipate flat pricing through at least mid-year while producers are expected to push for gains as soon as the second-quarter, citing expected returning demand and price pressure from upstream ilmenite ore producers.
Updated to mid-February 2013