Titanium dioxide producers have failed to implement higher prices for second quarter deliveries in Western Europe. Suppliers say TiO2 demand well behind expectations.
Price hikes demanded by several titanium dioxide (TiO2)producers for second quarter deliveries failed to materialise due to continuing weak demand. TiO2 manufacturers and buyers have usually agreed on a rollover of prices fixed in the first quarter. In individual cases also small downward price corrections occurred, clipping price extremes and narrowing the price range for second quarter contracts.
In spite of individual price corrections, the negative price trend for deliveries to the decor paper industry have now largely stabilised following the considerable decline seen in the previous four quarters, it is learnt. In the paints and lacquers sector however, price stabilisation has only been achieved to a limited degree, in particular because price agreements are probably based to a greater extent on a volumetric scale. Suppliers have offered further price reductions for the purchase of additional volumes, say market participants.
Due to an unsatisfactory earning position in second quarter contracts, several companies are mulling new round of price increases for third quarter deliveries. However, so far only one TIO2 manufacturer has announced its price plans. According to a notice published on 9 May, the company intends to hike prices in Western Europe and in Turkey by €200/t for deliveries from 1 June or following expiry of current contracts; in Eastern European markets, where deliveries are invoiced in US dollars, a supplement of $250 is to be applied.