Suppliers cited tight supply and pressure from rising ilmenite ore, additives and other raw materials as rationale for the increases, which were proposed effective on 1 April, but implemented on 1 July following customary 90-day price protection.
The increase moved domestic contracts to a range of $1.55-1.69/lb, as assessed by ICIS, with most customers at the lower end of the range.
Customers acknowledged tight supply despite a disappointing spring coatings season in North America, and delivery lead times of 45-90 days for most of the past 12-16 months, but remain frustrated by the rapid rise of domestic TiO2 pricing.
The domestic TiO2 market's eighth consecutive quarterly increase has pushed average pricing up by about 40% since November 2009. Another 35 cents/lb in price gains are expected by 1 October.
Buyers said passing along costs to their downstream customers has been difficult and has prompted urgent research into alternative materials that can achieve opacity while buying less TiO2.
However, TiO2 is still the preferred pigment for hideability.
In the primary architectural coatings end market, US homebuilding activity rose by 3.5% in May from April, the Department of Commerce (DOC) reported in mid June, but that increase was measured against the sharp 10.6% decline in housing starts in April.
The May new-home construction was still 3.4% off the level of activity reported for the same month last year
($1 = ?.69)
