The TiO₂ industry is quickly returning to strength, as 4Q20 YoY volumes were significantly higher. Nowhere is the impact more immediately felt than China, as both the domestic market and the export market are seeing rapid gains in price. TiO₂ pricing is up an estimated 35% since early September for Chinese pigment. What is behind the increases, and why does it not represent significant earnings improvement for Chinese companies?
A brief history of China’s recent past provides some insight. China has continued to expand its exports in 2020, doubling its TiO₂ exports since 2015, reaching over 1.2M tonnes in 2020.