Chemours, a US titanium dioxide producer, reported that sales of titanium dioxide fell sharply in the first three months of 2019.
Chemours announced on Thursday, May 2 that sales for the first quarter of this year were $555 million, compared to $854 million in the first quarter of 2018 and $666 million in the fourth quarter of 2018.
According to Chemours, the decline in sales was due to “weak demand” and the company’s own price stabilization strategy that led to a decline in production. Chemour said the move is intended to encourage buyers to sign supply contracts that are longer than traditional quarterly trading.
On May 2, the bulk amount of titanium dioxide was US$290.035 million per ton. This is the same as the price at the end of the first quarter of 2019, on March 28, and the price a year ago was $2,900 to $3,400 per ton.
Chemours President and CEO Mark Vergnano is optimistic about future demand.
He said: "Despite the weak performance in the first quarter, the fundamentals of our entire business are still stable." "We expect that as we enter the second half of 2019, the market will stabilize in the titanium dioxide market."