(Yicai) Feb. 23 -- Annada Titanium Industry and other leading Chinese titanium dioxide producers have raised their prices for the second time this year due to the increased cost of the raw material titanium concentrate and robust demand abroad.

Annada and CNNC Hua Yuan increased their price of the pigment used in paints and food coloring by CNY700 (USD97.30) per ton for domestic customers and USD100 per ton for overseas clients this week.

Although they did not disclose the size of the latest hike, judging from the current price of titanium dioxide in China of about CNY168.8 million (USD23.5 million) per ton, they have raised their prices by around 5 percent.

Together with an earlier markup on Jan. 20, Annada has hiked domestic prices by CNY1,400 (USD194.50) per ton and those for overseas clients by USD200 per ton since the beginning of the year.

The price of titanium concentrate has been on the rise since the end of last year and demand for paints and coatings is surging overseas, said Wang Qiangfeng, chief chemical industry analyst at Huaan Securities. Also, many foreign manufacturers are raising their prices. 

Demand from India and Europe has a great impact on Chinese titanium dioxide exports, Securities Daily reported, citing a source at Tongling-based Annada.

Titanium dioxide prices are expected to continue to rise in the short term affected by the high price of titanium concentrate, greater domestic demand and booming exports, Wang said. The titanium dioxide market may peak in March and April as more coating businesses resume production next month, he added.

Editor: Kim Taylor