Why international gaint manufactories increased the price of TiO2

Feb,28,Kronos,TiO2 giant manufactory,has announced that the price of TiO2 sold out of North America and Europe will increase,mainly including the Asian-Pacific region,Latin America,Middle East,Africa and Asia.On 1st,March,2013,all the prices of TiO2 from Kronos sold out of North America and Europe will be raised $250/t,or fulfill the requirement of the contract.Another news said that,the third largest TiO2 supplier Huntsman also announced that,the price of TiO2 sold in the Asian-Pacific region will be raised 300/t after 15th March.Recently,other international gaint manufactories producing TiO2 also announced price increasing one after another.

This phenomenon shows that :

(1)According to the market dicipline in the past,the demand of plastics and paint will increase at any time in March or April,because the shopping season of coatings is coming in March or April.In the light of dicipline in former years, in the following months,the demand from downstrem,rubber industry will go up.

(2)The international giant manufactories are optimistics about the markets in Asian and Pacific region,especially the markets in China and India.China and India are the two giant developing countries in the world.With the steady progress of urbanlization in China,the demand of TiO2 increased steadily year by year;although the GDP of India just increased 5%,however,similar to China,with the great population,the demand of TiO2 in India is also increasing shaply.

(3)Production in low profit led the firms to dilemma.Last year,the profit growth of the international giant TiO2 manufactories decreased in various extent,some of them even got a negative growth.The purpose of price adjustment this time is compensating the lost profit last year.Meanwhile,at present the economic situation of the whole world is not improved fundmentally yet,the weakness of the demand of the downstream is still dominated.The supply of TiO2 still outstrips demand.The time node of price adjustment of this time is questionable.

By Betty