DuPont Titanium Technologies, a subsidiary of EI DuPont de Nemours & Co. (DD), world’s second leading chemical company stated that demand for its titanium dioxide, a pigment, used in products such as tattoo inks, food dyes and sunscreen improved in the first half of 2009.   Wilmington, Delaware-based DuPont noted that demand for titanium dioxide usually moves in tandem with the economy. Titanium demand drops when recession intensifies and leads with economic recovery. DuPont added that the titanium dioxide industry operates on small margins, which is a significant entry barrier for new entrants. DuPont being a large-scale producer enjoys cost advantage.

During the first half of 2009, DuPont had reduced its working capital requirement by 28% and trimmed down fixed costs by 15% compared with the same period of 2008. The company was also able to cut its sales, marketing and administrative expenses by 17% year over year.

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Recently, Delaware-based chemical giant DuPont (DD) increased prices for all its Ti-Pure® titanium dioxide (TiO2) products sold in Eastern Europe, Middle East and Africa regions. Effective August 1, 2009, or as permitted by the contract, prices in these markets were increased by $150 per ton. This is on top of a $100 per ton price increase announced on May 15, 2009, in Europe and Middle East. Titanium dioxide is noteworthy for its wide range of applications. When used as a pigment, it is called titanium white. The pigment is widely used to provide whiteness and opacity to products such as paints, plastics, paper, ink, food and toothpastes. It is also used in cosmetic and skin care products, and it is present in almost every sunblock, where it helps protect the skin from ultraviolet light. Titanium dioxide accounts for 70% of the total production volume of pigments worldwide....