European carbon black prices raised
Degussa posted price rises of €30 per tonne for its tyre and MRG carbon black products, to take effect from 15 May 2003 or as soon as contracts permit. Unless the upward trend in world oil prices abates, further carbon black prices may be in the pipeline. European Rubber Journal, Jul/Aug 2003, 185 (7/8), 16 TiO 2 suppliers face disappointing demand & find it hard to raise prices Several journals have recently published surveys of the TiO 2 pigment industry. 'CW' notes that the US industry's inventories increased by 20,000 tonnes in April and rose still further in May, passing the 160,000 tonnes mark, representing nearly 40 days' output. At the end of last year, US producer inventories represented only just over 34 days' output.
The reason for the build-up is generally believed to be weak demand from the architectural paints sector. 'CMR' mentions "poor weather and a lengthy economic slump" as contributory factors. After a reasonably healthy start to the year, some suppliers had been anticipating a 10% increase in US demand in the second quarter, according to 'CW', but the upturn failed to materialise.
In January 2003, DuPont, Millennium and Kerr-McGee posted price increases of $0.06 per pound for TiO 2 pigment destined for US customers in all industries other than the paper industry. (See also 'Focus on Pigments', Jan 2003, 3). In fact, 'CW' reports that prices increased by only $0.03 per pound during 1Q 2003 and they have subsequently stagnated. 'CMR' reports the average level of realised prices in the US at $0.86-0.89 per pound (equivalent to $1895-1960) in mid-2003. Onwards from May/June, producers have trimmed back on their plant operating rates -from 95% to 90% -in order to curb the excessive build-up in inventories. According to 'CMR', Kerr-McGee is fairly bullish about the industry's prospects. The company reported TiO 2 sales volume for 2Q 2003 as 10% higher than in 1Q 2003, but 6% down on the very healthy level of sales attained in 2Q 2002. For 3Q, the company expects prices to stay close to the current