The last several years have been a roller coaster ride for anyone associated with the TiO2 industry, including raw material suppliers and both producers and consumers of TiO2 pigment products. The unprecedented volatility in the supply and demand balance, and subsequent rapid increase and collapse of TiO2 pricing led many consumers to take measurable action to restrict use of the product more than at any point in the past 20 years.
TZMI believes that significant R&D efforts were put forward by formulators from 2010 through 2013, but efforts to reduce TiO2 usage in formulations have waned as the price for the compound that is critical to providing opaque properties to mixtures has substantially declined during the past 18 months. The risk of supply shock has also declined as inventory levels throughout the supply chain remain healthy. TZMI believes that many formulators have instead shifted focus to optimizing formulated costs, which has different implications versus a ‘decrease use of TiO2’ strategy. The latter approach often includes efforts to minimize TiO2 wherever possible, and this tactic was widely employed during 2010-11.