PIGMENTS | TITANIUM DIOXIDE
Right: Venator’s new Tioxide TR29 can be used in thin films for applications such as detergent pouches
naturally going to be reluctant to agree to a base price that is too far out of line with the prevailing spot market price,” Adams explains. In February of this year, Chemours introduced a new online portal for customers – called Ti-Pure Flex – saying it will offer a flexible approach for qualified customers purchasing its Ti-Pure TiO2
without
having to make a commitment to buy beyond the accepted order. Pricing and supply commitment can be locked-in for up to six months in advance. Ti-Pure Flex is said to be akin to consumer
portals such as Amazon and Alibaba, according to Bryan Snell, President of Chemours Titanium Technologies, with its offer of a “buy-as-you-need” approach. “It’s super simple,” he says. Snell describes Ti-Pure Flex as an industry first and says it is intended for very different customers from those using its Assured Value Agreement (AVA) programme. Primarily, it is designed for those that don’t need technical support – AVA customers get priority access to Chemours’ technical expertise – and are comfortable with buying small lots in a dynamic pricing scenario. Ti-Pure Flex customers can still access the com- pany’s technical resources but they pay extra for it.
Targeting volatility The AVA pricing model is based on global PPI adjustment over time. “It is amazingly consistent with historical pricing, but it eliminates the volatil- ity,” says Snell. Currently over half of all sales of the company’s TiO2
are made through AVA contracts.
AVA has worked better for coatings customers than for plastics customers, as it fitted better into their business model, Snell says. “In the plastics industry, a lot of transactions are ingredients- based. Quite a lot of plastics companies are now buying through Flex, but some are getting more familiar with the AVA concept. Overall, we are very pleased with the uptake of Flex and we expect uptake to accelerate in coming months.” Ti-Pure Flex is offered globally. Snell says there
Above: Chemours Titanium Technologies President Bryan Snell says Ti-Pure Flex provides a “buy as you need” online pricing and supply option
42
are currently customers using the service in around 110 countries in around 10 different languages. It provides standard pricing by grade and by region. Chemours says it will confirm orders within three business days. Features of the service will change as it matures, the company says. The TiO2
supply-demand picture is likely to
support higher prices over time, says Snell. “It’s about restoration of levels that will support future investment in new capacity.” Market watchers have been predicting stronger pricing from the second quarter of 2020 onwards, he says. Chemours continues to debottleneck its various
COMPOUNDING WORLD | October 2019
production facilities and Snell says the company has further options for increasing capacity. “We have great process technology for very cost competitive debottlenecking at locations which also have low manufacturing costs,” he says. At TiPMC Consulting, which provides informa-
tion, marketing and technical services on the full TiO2
value chain for financial analysts and business
leaders, Managing Director Gerry Colamarino says the Chemours sales strategy separates customers between longer term, more stable pricing AVA contracts “and the majority of other customers purchasing through their portal, mostly on a spot basis, which is measurably higher pricing versus the AVA contract price.” He says that as supply tightens, customers not on AVA contracts will pay a higher price and that will gradually increaseglobal pricing. “We see current demand levels well below trend
line, mainly as a result of the recent destocking. Given the current uncertainty surrounding the global economy, it is difficult to precisely predict when pricing will turn
upward.Margins have been severely restricted, as the global TiO2
feedstock
industry has been increasing prices during the recent
downturn.This has produced increased floor pricing, with many TiO2
producers, particularly
Chinese producers, operating at very low profit margins,” Colamarino says.
Performance pigment Turning from supply and demand to product development, one company set to extend its product slate is Venator. At K2019 later this month, it will launch Tioxide TR29, which the company describes as its highest performing white pigment for low moisture applications and demanding processing conditions. “Combining ultra-low moisture content, with excellent dispersion
www.compoundingworld.com
PHOTO: CHEMOURS
PHOTO: VENATOR
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