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The Price of Titanium Dioxide ain't that gullible

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by Sakthi Prasad
7 December 2014

What does the white cream inside biscuits, white paint on the compound wall of your gymnasium and white pages stacked in your notebook have in common? Titanium Dioxide or simply TiO2 in chemical terms.
TiO2 can be termed as the "Queen of Pigments." Without its existence, we would find it tough to produce artificial white color that goes into so many of our daily use products: from paper to chic paint on our favourite car.

TiO2 may give us the white color yes -- but the pigment's pricing is not always what one could term as "Black and White." Instead there exist shades of grey or price opportunities that could be made use of by large volume buyers - those who typically buy 100,000 mt on an average every year.

However, spotting arbitrage opportunities isn't that easy. Large volume buyers of TiO2 often fail to realize the difference between potential and actual cost savings, and hence miss out on good chances to lock-in a favourable contract price.

It becomes imperative for buyers to know the costing aspects of this all pervasive pigment. Otherwise they could be in an unfavourable position while negotiating with TiO2 suppliers.

Negotiating an optimal price is important for buyers because their profit margins would be squeezed if they end up paying a sub-optimal price for their TiO2 supplies.

To get a detailed perspective on various cost levers, please CLICK HERE to watch Vaishnavi Jayaraman's Webinar.

Key takeaways from the Webinar:

  • How to battle procurement risks while re-allocating to Low Cost Country Sourcing (LCCS) and associated cost benefits from the procurement shift?
  • Spotlight on comparative study between generic and region-quality specific costing details
  • Effective leverage of current market scenario to lead procurement contract negotiations



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