Easing supply conditions and a weakening TiO2 demand are increasingly affecting titanium dioxide prices in Western Europe.
Prices for titanium dioxide (TiO2) on Western European markets had largely rolled over from the first into the second quarter of 2012. Nevertheless, downward pressure on prices continued to grow in the second quarter of the year due to ample supply and softening demand .
Since the end of the second quarter, more and more titanium dioxide buyers have been asking for price cuts in third-quarter contracts. Several buyers and sellers said to have agreed on leaving contract prices untouched for third-quarter deliveries, despite a mounting downward pressure from the supply side. However, price cuts were reported as well in a growing number of deals.
The majority of EUWID respondents expect TiO2 prices to remain unchanged or soften slightly during the remainder of this year. Producers believe that there will be no scope for more substantial price cuts, given spiralling ore procurement costs.
⇒ This article in an excerpt from EUWID's quarterly report on the titanium dioxide (TiO2) market in Western Europe. The EUWID Price Watch Titanium Dioxide for the third quarter is published in EUWID Pulp and Paper no. 32 on 8 August.
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