The TiO2 industry is entering a significantly challenging time. The optimism of the first half of 2022 has completely turned in the opposite direction. European demand may be off as much as 40-50% in the second half of 2022 versus the prior year. Although China is much more opaque, operating rates and pricing developments point to reduced demand perhaps in the double-digit range versus prior year comparisons. Numerous operating plants are reported to be curtailing or ceasing production. North America and Latin America were reported to remain strong. These regions are expected to slow in 2023, as recession is likely.
Demand in Europe dropped dramatically as energy prices spiked, reducing disposable income. Multiple reports are also indicating large-scale destocking on the part of TiO2 consumers. These forces combined for a dramatic impact. Imports into Belgium, a major hub for distribution throughout Europe, fell dramatically in August.