As COVID-19 spread outside China, TiO2 sales were impacted. TiPMC provides some insight, along with a view of what signs will signal an industry recovery.
During both the production process at the TiO2 producer and the manufacturing process of paints, coatings and composite materials, avoiding the coagulation and agglomeration of the TiO2 dispersion is important. Surface chemistry of the TiO2 dispersion can be controlled during the measurement of Electrokinetic Sonic Amplitude (ESA) by regulating the pH value, e.g. for avoiding flocculation of dispersion.
TiPMC believes this scenario sets up the TiO2 industry for a roller coaster impact throughout the next several months. The implications of a weaker Chinese economy will be involved in a balancing act with reduced Chinese production and increasing Chinese production costs.
The differentiation among TiO2 products is not only growing but impacting supply and demand. Customers and suppliers alike are recognizing inventories and pricing more as “sulfate vs. chloride”, which in reality deals more with the quality of products accepted within differential segments – and having their own supply/demand dynamics.
TiO2 demand is more closely correlated to industrial production than to GDP, and the correlation between TiO2 demand and GDP is likely to decline as service sectors grow as a share of global GDP.
PCI recently met with Bryan Snell, President of Chemours Titanium Technologies, to discuss the current state of the industry, challenges customers face when purchasing TiO2 and a new initiative that Chemours is offering to offset some of these challenges - the Ti-Pure™ Value Stabilization (TVS) customer model.
Pricing is beginning to reflect destocking coming to a close. Based on recent reports and trade data, TiPMC foresees prices stabilized in all regions during the traditionally strong demand period of 2Q, with price increases gaining traction toward the end of the quarter in specific regions.
The TiO2 industry worldwide is encountering difficulties and challenges short term, although there are some signs of hope. The trade wars, the potential of recession in the European economy, and political tensions in the Middle East are showing up in trade statistics, and they directly relate to TiO2 demand.
