LEATHERHEAD, UK – Global titanium dioxide (TiO2) demand is estimated to grow at a compound annual growth rate of 3.5 percent, reaching 6.79 million tons by 2016. However, potential production expansions anticipated during this period could create an oversupply situation of over one million tons by 2016, creating downward pressure on TiO2 prices, according to a new study by IntertechPira.
A key focus of the study is the effect of both the global economy and potential new capacity on TiO2 supply and demand.
“As most of its markets are mature, TiO2 demand depends largely on construction activity and consumption of durable goods, which are strongly tied to a region’s GDP and therefore economic health,” said Publisher Adam Page.
“Eastern Europe and Asia are the regions with a GDP per capita well below the world average and so have the potential for strong growth,” predicts Page. “Over the past few years, about 80 percent of the world’s growth in TiO2 demand has been in Asia-Pacific, and over half of this in China.”
Supply and Demand Balance Crucial to TiO2 Industry
October 1, 2009