A strong market for titanium dioxide could continue into 2013, lifting the ratings of some pure-play producers, as supplies remain tight despite a sluggish recovery in key U.S. and European housing and construction sectors, according to Moody＇s Investors Service.

The market＇s strength could support ratings increases for Cristal Inorganic Chemicals, a unit of Saudi Arabia＇s Cristal Global, and Kronos International, a division of Kronos Worldwide Inc. (KRO), Moody＇s said.

Kronos shares were up 2% at $28.79 in recent trading despite a broad market downturn. The stock has more than tripled in the past year.

Moody＇s on Friday said titanium-dioxide prices climbed 35% through the first quarter of this year, and the credit-ratings company expects them to rise further through the end of the year. Industry margins also have been strengthening as the price rises easily outpace rising input costs.

Major producers such as DuPont Co. (DD), Huntsman Corp. (HUN), Rio Tinto Ltd. (RIO.AU) and Kenmare Resources PLC (JEV.DB) have been running titanium-dioxide plants flat out since a recovery in demand last year, spurred by the auto sector and the broader increase in global industrial production. DuPont is planning to spend more than $500 million on a new plant it is planning for Mexico.

The industry had permanently shuttered some of its capacity during the economic downturn, leading to tight supplies as manufacturing rebounded.