MOSCOW (MRC) -- Ukrainian PVC converters are facing a severe titanium dioxide shortage - according to MRC analysts.
As per market players, titanium dioxide supply is tight to satisfy the demand of Ukrainian converters, which might lead to suspension of some facilities soon. That became obvious in June-July, when the list of titaniun dioxide orders stretched for 2-3 months. PVC converters, who managed to build up certain titanium dioxide stocks and facilities that work with finished PVC compounds are not experiencing any serious problems and working normally.
There are two titanium dioxide producers in Ukraine: CJSC Krymskiy Titan and JSC Sumyhimprom. Part of Ukrainian companies use local titanium dioxide for PVC finished goods production, where no serious quality is necessary. High quiality of titanium dioxide is critital for window profile producers, that is why these producers are facing serious lack of material.
The similar situation with titanium dioxide in the Russian market was observed in July - August, 2010. Global titanium dioxide production was cut down by 10-15%, when the demand went down by 5% only. Plant shutdowns and reduction of titanium dioxide production in 2009 brought to certain deficit of this pigment in the US and Western European markets. Some titanium dioxide producers do not rush to return to previous production level waiting for appropriable margin.
Russian polymers market prospects will be discussed at Russian Polymers Summit on October 14, 2010 organized by ICIS and MRC. For more information please refer to http://www.icisconference.com/russianpolymers/ Summit official web page.
MRC
More information about the PVC market in Ukraine is available in MRC Price reports.