Titanium dioxide (TiO2), the most coveted pigment in coatings, efficiently scatters visible light, thus increasing brightness, whiteness and opacity. The juxtaposition of TiO2 demand and the availability of this white compound led to unprecedented price increases during 2010-2012, followed by slashed prices from 2012-2015, leaving the industry reeling. TiPMC Solutions calls this recovery the Super Cycle, and offers insights showing how the big producers are sustaining the current cycle going forward.
The Multinational Producers (MNPs) – Chemours, Kronos, Tronox, Cristal and Venator – have significantly changed their strategies in expanding TiO2 markets and imposing higher prices. In earlier up cycles, they poured capital into new plants to increase production when business was booming. When the cycle downturned, they competed on price. Then, producers in China flooded global markets with low-cost, low-quality product, leaving the MNPs with a no-win situation.