IHS Chemical Week

Economics :: Prices

Consolidation and Curbed Growth in China Aid TiO2 Margins

1:41 PM MST | January 14, 2008 | Rebecca Coons

Titanium dioxide (TiO2) pigment prices and margins are expected to increase in 2008, says Jim Fisher, president of consulting firm IBMA (Plainsboro, NJ). The improved outlook stems from continued industry consolidation among TiO2 producers, as well as new tax and regulatory constraints that are expected to raise costs and limit capacity growth for Chinese producers, says Frank Mitsch, analyst at BB&T Capital Markets (New York). While China’s demand growth is 15%/year, producers are adding capacity at such a fast rate they are able to increase TiO2...

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