China's magnesium oxide & magnesium hydroxide industries

• Publisher: Elsevier Science
• Year: 2006
• Weight: 50 KB
• Volume: 2006
• Category: Article
• ISSN: 0969-6210
• DOI: 10.1016/s0969-6210(06)71140-7

✦ Synopsis

Mexico and the Caribbean region (effective as from 1 September). This move was promptly followed by Tronox.

Meanwhile, suppliers have been keen to enforce their price increases announced earlier for customers in Europe and North America. According to 'CW', the announced price increases of €130-140 per tonne ($165-180 per tonne) represent increases of about 10% for European customers, while the announced price increases of $0.04 per pound ($90 per tonne) represent increases of about 5% for North American customers. The recently announced $100 per tonne increase for Asia/Pacific will also represent an increase of about 5% for this region.

Operating difficulties at certain plants, including Lyondell Millennium's Stallingborough facility in the UK, have tightened supply at a time when demand remains quite strong. Manufacturers' pigment inventories are relatively low, which should also lessen the risk of "weak sellers" undermining the price initiatives.

According to Banc of America, quoted in 'CMR', comparing full-year 2006 against 2005, world TiO 2 pigment consumption will increase by 8-10% in Asia; by 2-4% in North America; and by 0-2% in Europe. Global pigment capacity is estimated by this source as 5.076 M tonnes/y, with DuPont -the market leaderaccounting for 1.12 M tonnes/y or 22% of the total. Average capacity utilisation rates are assessed as being "in the mid-90s", which indicates global production at 4.77-4.87 M tonnes. But, incongruously, the analyst's published estimate for global consumption is only 4.2 M tonnes.