Market and product

Production of titanium dioxide (TiO2) plants in China continues to be limited by supply chain disruptions caused by the coronavirus outbreak.

Tighter supply has prompted TiO2 producers to hike prices for the material in both the domestic and export markets.

Chinese TiO2 export prices were last assessed at $2,100-2,200/tonne FOB (free on board) China on 21 February, according to ICIS data.

The Chinese government has eased restrictions on logistics and movement of people, so that workers are able to return to their jobs after an extended Lunar New Year holiday (24 January to 2 February).

However, infections in the work place were recorded, including at a major TiO2 manufacturing unit in the country.

Pangang Group has shut its TiO2 production unit in Chongqing’s Banan district, when it was found that members of staff were infected with the coronavirus, according to a local government official.

With two confirmed cases of infection at its Chongqing premises, the company placed all its employees at the site under quarantine.

Meanwhile, some TiO2 producers are facing difficulty securing feedstock ilmenite, whose cost was estimated to have surged by Chinese yuan (CNY) 400/tonne ($57/tonne), due to logistical constraints.

Export trade was likewise hampered, with some in-land producers struggling to arrange transport for their TiO2 cargoes to coastal ports, to be shipped out.

Buyers in southeast Asia, which were in urgent need of cargoes, were pressing for late-February shipment dates but a few Chinese suppliers were willing to provide delivery guarantees.

Some were bracing themselves for potential delays for any TiO2 Chinese exports. - ICIS -