The world’s biggest consumer of titanium dioxide, DuPont Co, is facing up to problems in maintaining profits due to the fact that mining firms supplying the raw material for the industry have failed to meet requirements.
The consumption of titanium dioxide which is mainly used to manufacture paints has increased in developing countries due to improvement in their living standards. The price of the pigment also referred to by its chemical formula TiO2 has increased by as much as .38% during last year. The price of rutile, a material having up to 95% titanium dioxide has surged by 77% during 2011.
Rutile which is processed to purify TiO2 that is marketed as white pigment to increase opacity to paper, plastics and paint.
DuPont said that profit margins would not be better than last year mainly because of increased titanium dioxide prices. However continued growth in demand is expected in 2012 and beyond.
DuPont is expecting international economies to gear up during next year. The company intends to construct a new plant in China. Demand for TiO2 is encouraging mining firms to build up fresh supplies. Rio Tinto Group, a producer of titanium dioxide as well as Australia’s Iluka are planning to expand mines.
