The outlook is positive for most TiO2 producers for 2021. Increasing demand and the limited ability of Chinese producers to respond fairs well for global players. Multiple factors, including feedstock, Chinese chloride capabilities, and product quality all will impact the long-term future of the industry.
As the TiO2 market strengthens post-pan demic, TiO2 consumers in North America will continue to be faced with the dilemma of how best to find reductions in TiO2 costs.
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.
