US Q1 TiO2 rises on demand, balanced domestic market

HOUSTON (ICIS)–US first-quarter titanium dioxide (TiO2) contract prices were assessed higher on Friday, stemming from better-than-expected demand and more balance in the domestic market.

Separate price initiatives of 6-7 cents/lb ($132-154/tonne) were proposed by most of the major producers, with effective dates of 1 November and 1 January.

The increases took TiO2 to a new range of $1.30-1.35/lb FD (free delivered), as assessed by ICIS. The increase was 5-7 cents/lb.

With 90-day price protection afforded to most contract customers, successful initiatives were expected to be implemented in either the first or second quarters of this year.

Market momentum, however, saw some gains achieved sooner than the 1 April implementation dates expected with the 1 January announcements.

A buyer in the plastics compounding market confirmed it had accepted an increase of 5 cents/lb, with similar confirmation recently from buyers in the architectural coatings market. But buyers in both markets also verified gains ranging from 5-7 cents/lb.

Talk has now shifted to potential second-quarter outcomes, a buyer said.

A buyer suggested gains are possible with demand continuing to strengthen during the remainder of March and through the US spring paint and coatings season.

Most sources expect this year’s coatings season to be moderately stronger than in 2016.

Meanwhile, newer initiatives are appearing in the market for separate increases of 7 cents/lb, effective 1 March. With price protection, implementation would be on or after 1 June, if successful.

TiO2 is used in products such as paints and coatings – including glazes and enamels – plastics, paper, inks, fibres, foods, pharmaceuticals and cosmetics.

Major US TiO2 suppliers include Chemours, Cristal, Huntsman, Kronos and Tronox.