The TiO2 industry is in a position never before experienced in its long history as it moves through the seasonally high coatings demand period in North America. Demand is returning beyond average GDP levels, particularly in China. In turn, price-sensitive customers are absorbing a huge increase in price. TiPMC believes pricing stabilization initiatives, coupled with focus on segmentation by multinational producers (MNPs), has allowed them to reap the benefits foreseen in early 2021.
The pricing dynamic between MNPs and Chinese exports during the pandemic, along with the rapid increase in Chinese exports, provides insight into the current dynamic. As demand slipped in China, Chinese producers chose to gain export share through price reduction. Although volume was being lost, MNPs chose to hold pricing steady, anticipating a strong 2021 recovery. The strategy has paid dividends: