The TiO2 industry has experienced three extremely difficult quarters, as rapid decreases in underlying demand, followed by destocking, led to significant decreases in demand. Multinational producers’ (MNPs) volume in Q4 2022 was 35% lower than Q4 2021. This followed a third quarter that was down 18% compared to the previous year. Although Asia is recovering, mainly as a result of a post-COVID economic stimulus in China, recessionary headwinds throughout Europe and the Americas are significantly impacting demand in 2023.
MNPs continue to seek price stability, dramatically reducing production rates across the world to manage inventories, while Chinese producers have favored lowering price and maximizing volume. Earnings for all producers are depressed, with two MNPs recording Q4 2022 with negative EBITA. Negative earnings are reported on the part of multiple Chinese producers, with high-cost producers reducing operating rates.