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Sunday, 22 October 2017

Titanium dioxide: development in China leads to higher prices

Friday, 28 July 2017 | Posted by: Damir Gagro, European Coatings Journal

Titanium dioxide is keeping the paint and coatings industry worried. Skyrocketing prices, supply shortage and the danger of being classified. The headlines were in general negative in the last twelve months for paint and coatings producers. The latest developments in China will bring a new price hike.

On LinkedIn, I stumbled over a posting by John Wilson, Marketing Manager at OK Chem. He wrote, this week 73 Chinese TiO2-feedstock plants are being permanently closed by the government. The plants "still cannot meet the requirement from China Environmental Protection Administration after 1 year's measures”, he adds. He further concludes that prices for TiO2 feedstock have immediately been hiking. This will surely also affect the prices for TiO2.

By now coatings producers have only raised their concerns and critical voices regarding the high prices for TiO2. Axalta Coating Systems has now reacted to the price increases, which have taken place for months now. From August 2017 on, the coatings producer will impose a price surcharge for coating products that contain titanium dioxide. The company is setting a signal with its move. The most likely tactical hesitant behaviour by coatings producers to increase their own prices might be over now. It is assumed that other companies will follow. The situation regarding TiO2 will not calm down soon.    

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