Tronox Inc. (TROX)

[fuller11]

I found this on another board:

This from latest CS report on chemical industry outlook. The supply constraints and demand outstripping market availability of TIO2 has resulted in price increases that has defied prior forecasts and expectations.

Titanium Dioxide (TiO2)
¦ Prices––US producers achieved a $0.15/lb increase (+10%) on July 1, driven by
rising input costs (Ti Ores) as well as a tight S/D balance. This follows the $0.10/lb
(7%) and $0.08/lb (6%) increases implemented on April 1 and January 1, respectively,
resulting in YTD TiO2 prices up 23%. Looking ahead, the five major producers
announced significant price increases ranging from $0.10-0.20/lb effective 9/1 and
$0.25-0.35/lb, effective 10/1. Given we expect the market to remain tight, we believe
producers will likely achieve both of the prices increases. Assuming these price
increases are implemented, TiO2 prices will be up ~50% in 2011, almost double
expectations for a 20-25% increase.
¦ Supply––TiO2 supply remains tight, as ~5% of capacity was taken off-line
permanently and demand has recovered quicker than expected (led by strong growth
in China). According to industry experts, assuming TiO2 demand grows ~3%/year
globally, ~175K tons/year of new capacity is required. DD is planning a brownfield
expansion at its Altamira, Mexico site (200K tons costing ~$500 mil, expected by the
end of 2014) as well as significant debottlenecking (150K tons over the next three
years). DD also remains committed to the China greenfield project (200K tons, costing
~$1 bil, expected in 2015 but permitting has been difficult thus far). While this will help
to loosen the S/D dynamics in 4-5 years, we expect the market to remain tight until
then.