(ICIS) -- Rockwood Holdings's CEO expects no upturn in the US housing market next year or the year after, he said on Wednesday. ⌠We are not optimistic about that for 2012 or 2013, said Seth Ghasemi, chief executive at the US-based specialty chemicals firm, in an earnings conference call.
Rockwood makes titanium dioxide (TiO2), a major ingredient in architectural paints and coatings and considered a good chemical indicator of the health of the US housing market.
Housing, in turn, is a large end-market for such chemical products as plastic pipe, insulation, paints and coatings, adhesives, roofing materials and synthetic fibres.
The American Chemistry Council (ACC) estimates that each new home built represents $16,000 (┬11,520) worth of chemicals and derivatives used in the structure or in the production of component materials.
While Rockwood's third-quarter sales of TiO2 rose 31%, Ghasemi said the jump stemmed from increased pricing because of higher raw material costs. Actual TiO2 volumes declined 17% from low demand.
MRC