Global TiO2, mineral sands, and coatings producers have reported their first half earnings, and the outlooks for the remainder of 2023. The prolonged slump seems all but certain to continue for the rest of 2023. TiPMC believes 2023 will see a 5-8% drop in overall TiO2 demand as compared to 2022, when the market declined an estimated 8% vs. the previous year. Reports are consistent around low inventories throughout most supply chains, but forward indicators do not show a great need to be concerned about supply reliability. The state of the Chinese real estate market and United States sales of existing homes are pointing to more of an “L-shaped” recovery vs. a “V.”
TiO2 producers are responding by reducing their operating footprint. Chemours announced the closing of its Kuan Yin facility in Taiwan (estimated 170 ktpa capacity) effective August 1, 2023. Venator indicated in its Chapter 11 filing that it plans to shut down both its Duisburg and Scarlino TiO2 operations (130 ktpa, combined). As the Ukraine war has progressed, both the Ukrainian TiO2 producer (Sumi) and the Russian producer (Crimea Titan) have had their operations impacted (total of 165 ktpa capacity), as the latter is reported to have the plant mined to release toxic chemicals.