MARKETSNew wave of TiO2 price rises

Major suppliers have launched a newwave of TiO2 pigment price increases.The first move was made on 10February, when DuPont announced a$150 per tonne price increase onshipments to Middle East markets.

Then, on 19 February DuPontannounced that it would raise itsprices for US deliveries by $0.05 perpound and for Canadian deliveries byC$0.06 per pound. The companystated: “This price increase followsfinalising the 1Q 2004 implementationof the earlier (1 October 2003)announced price increase of $0.03per pound for TiO2 pigment gradessuitable for coatings, plastics,laminates and speciality products.”DuPont also indicated that its earlierannounced price rises for paper-gradeTiO2 ($0.04 and C$0.06 per pound)would be fully implemented by 1 April2004. The latest price increases applyto paper-grade pigments as well as toall other DuPont TiO2 pigments andshould become effective as from 15March 2004 or as soon as permittedby contract terms.

On 17 February, Kerr-McGeeannounced the same price increasesfor the US and Canada. On 20February, Millennium made a similarannouncement and on 21 FebruaryKronos followed suit. In itsdeclaration, Kerr-McGee also postedprice rises of $0.05 per pound forMexico and $100 per tonne for SouthAmerican markets.

On 1 March, Millennium postedprice increases due to becomeeffective as from 1 April, namely:$100 per tonne in Central and SouthAmerica, $150 per tonne in Asianmarkets and €120 per tonne (or $150per tonne) in Middle East and Africanmarkets.

On 10 March, Kerr-McGee declaredprice increases of Yen 15 per kilo (or$135 per tonne) for shipments toJapan. For deliveries to other marketsin the Asia/Pacific region (exceptAustralia) prices will increase by $100per tonne. For shipments to markets inthe Middle East and Africa, prices willincrease by $150 per tonne.

Press releases from: DuPont, Website:http://www.titanium.dupont.com (10 Feb & 19 Feb2004); Millennium Chemicals

Website: http://www.millennium.com (1 Mar 2004);Kronos Worldwide, Website:http://www.kronosww.com (21 Feb 2004); & Kerr-McGee, Website: http://www.kerr-mcgee.com (17 Feb& 10 Mar 2004)

Rockwood raises iron oxide pigmentprices by 5%

Rockwood Pigments has posted priceincreases of $0.06 per pound (orabout 5%) for its iron oxide pigmentssold to customers in North Americaand around the world. The priceincreases took effect as from 12January 2004. Rockwood cites“dramatic increases in the costs ofraw materials, energy andtransportation” as reasons for makingthis move.

Chemical Week, 18 Feb 2004, 166 (6)

Sb2O3 prices raised twice in 1Q 2004

Great Lakes Chemical Corp raisedprices for its antimony trioxideproducts twice within the space of twomonths. For shipments made after 23January 2004, prices for all grades ofantimony trioxide increased by $0.25per pound in the Americas and by$550 per tonne in European andAsia/Pacific markets. Then, forshipments made after 29 March 2004,prices for the American marketsincreased by a further $0.15 perpound, while prices for European andAsia/Pacific markets increased by afurther $330 per tonne. Prices forother antimony derivatives alsoincreased dependent upon antimonycontent. These price rises reflectedincreases in the London Metal Bulletinposted value for antimony metal.Great Lakes Chemical anticipatesfurther tightening of the raw materialsupply/demand balance through tothe end of 2004.

Press releases from: Great Lakes Chemical Corp, POBox 2200, West Lafayette, IN 47906, USA, Website:http://www.greatlakeschem.com (20 Jan 2004 & 26Feb 2004)

Healthy growth in carbon black demandforecast for China, Japan & the US

Reviews of the world carbon blackindustry by ‘ECN’ and ‘CMR’ werecovered in ‘Focus on Pigments’, Jan2004, 2-3. More recently, ‘CW’ haspublished its review of the industry,quoting slightly different figures.

According to ‘CW’, world carbon blackconsumption is forecast to increase at3.5% per annum, reaching 8.62 Mtonnes in 2006. Within this total, tyreswill remain the largest end-use sector,accounting for 65% of the total. Non-tyre rubber applications will accountfor 2.38 M tonnes (or 28% of thetotal). Speciality blacks will accountfor the balance. Forecast growth rates(between now and 2006) are: 5.2%per annum for non-tyre rubberapplications, 3.5% for specialities and2.8% for tyres.

Demand for carbon black in NorthAmerica is forecast to increase at3.5% per annum, while the Japaneseand West European markets facestagnation, according to ‘CW’.

‘JCW’ paints a brighter picture ofthe Japanese carbon black industry.For the first ten months of 2003,Japan’s carbon black production was648,000 tonnes and sales were652,000 tonnes. For the full-year,production and sales will beapproaching 800,000 tonnes/y,representing year-on-year growth ofabout 5%. Japanese carbon blacksuppliers have evidently increased theproportion of their sales of tyre-gradematerial, supported by higher exportsto North America. Capacity utilisationat Japanese plants is expected toremain high during 2004, thoughprofitability is unsatisfactory andsuppliers will try to raise their prices inSpring 2004.

China’s consumption just aboutmoved ahead of Japan’s consumptionfor the first time in 2003. By 2008,China’s carbon black consumption isexpected to nearly double from800,000 tonnes/y to 1.5 M tonnes/y.Degussa and Cabot recently increasedtheir respective carbon blackcapacities in China; Tokai expects tocomplete its 40,000 tonnes/y projectat Tianjin later this year.

Chemical Week, 28 Jan 2004, 166 (3) & JapanChemical Week, 22 Jan 2004, 45, 3

Luzenac retains strong position inworld talc markets, despite growth inChinese output

In a survey of the global talc industry,‘IM’ estimates China’s talc productionat about 3.6 M tonnes in 2002.Chinese talc has become a significantfactor in world markets, thoughLuzenac (part of the Rio Tinto group)

APRIL 2004 3

F O C U S O N P I G M E N T S