Titanium dioxide has experienced a rise in price this month. Many international business giants have announced price increase, Kronos, Huntsman and Cristal included. According to analysts from chinatio2.net, the possible reasons are as follow:

1. Due to the low consolidation at the end of 2012, titanium dioxide manufacturers from home and abroad start the new year by dropping the price to attract downstream customers. Market downturn and sustained low price bog down many companies, some of which even begin to lose money. A price increase is thus well timed to make up manufacturer’s loss, though the current economic situation is hardly optimistic and oversupply is still troubling the global market.

2. The first quarter of a year is usually a purchasing season for various industries including coating, ink and plastic, which indicates a boom of rigid demand of titanium dioxide in March and April.

3. Influenced by the recovery of U.S. economy, especially of the real estate industry, demands from North-American may rise on a monthly basis in the near future. Chinese and Indian markets also have great potential for growth.

4. With China’s urbanization, domestic demands for titanium dioxide may steadily increase. It is believed that the international giants’ advanced price adjustments are preparations for occupying China’s great potential market.

Ning Kecheng, General Manager of Shanghai Titanos Industry Co., Ltd, believes that Chinese titanium dioxide manufacturers and suppliers will perform well in the global competition. “Though the prices change frequently, we still possess great superiority with high performance price ratio,” he said.