(PRWEB) August 03, 2011
After 20 years of steady decline, the TiO2 pigment sector has turned the corner – and accelerated away. Rising prices are coming as a shock to the customer base, which has enjoyed nearly two decades of sourcing power. TZ Minerals International’s (TZMI) Pigment Price Forecast is the only independent forward-looking analysis of the prices for the titanium dioxide (TiO2) pigment and is published quarterly. The newly released Pigment Price Forecast Q3 2011 (PPF11Q3) uses a detailed analysis of the global supply/demand balance forward to 2015 to develop its latest five-year regional price forecast. Regional price forecasts are also provided on a quarterly basis for 2011 and 2012.
PPF11Q3 further details TZMI’s opinion that 2011 price increases are escalating rapidly as a result of market fundamentals, lack of supply and increasing cost pressures.
If current pricing trends continue, the market price for TiO2 will eclipse TZMI’s ceiling estimate by mid-to late-2012 and peak pricing during this cycle is likely to occur when demand is destroyed and not a result of overcapacity.
TZMI believes the initial decline in pricing will result from demand destruction in key segments, and it is likely to be slow at first. However, Chinese producers will be able to add significant capacity first, as TZMI believes that they will gain access to adequate feedstocks before global chloride producers. The lower quality volume from this additional production will be used in China and in other Asian countries where it is fit-for-use.
The Chinese supply and a few key expansions at global producers’ sites will shift the balance to oversupply by 2014, eroding pricing power as inventories rebuild to historical levels.
“TZMI believes that pigment producer margins will expand through 2012 and decline from 2013-2015 as costs begin to erode margins,” TZMI Senior Consultant Eric Bender says. However he adds, “TZMI believes profitability levels will remain above 2002-2008 levels throughout the forecast.”
The major producers of TiO2 pigment are: E.I. du Pont de Nemours & Co; Cristal Global, Huntsman Corporation, Tronox Incorporated, Kronos Worldwide Inc, Ishihara Sangyo Kaisha Ltd and Rockwood Holdings Inc. The major producers of TiO2 feedstock are: Rio Tinto Limited, Iluka Resources Limited, Exxaro Resources Ltd, Bemax Resources Limited, Eramet SA and Kenmare Resources plc.
For more information or to order a copy of the TZMI Pigment Price Forecast Q3 2011, visit http://www.tzmi.com
TZMI is a global, independent consulting and publishing company with offices in Australia, the US, Europe, Africa and China. The strength of TZMI’s consulting services stems from extensive practical experience in the mineral sands, titanium dioxide and coatings industries and from a comprehensive database, which has been built up over many years.
TZMI has proven expertise gained from our consultants having many years of direct operating experience in the industry in chief executive, senior operational, analytical and marketing roles.
TZMI’s publications and data services support the consulting activities and ensure up-to-date, high quality and comprehensive data, analysis and information across the mineral sands, zircon and TiO2 pigment industries.
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