Titanium Dioxide Market Intelligence

Industry Outlook & Drivers

Global Titanium Dioxide Market Overview

• The global titanium dioxide capacity was at 5.74 MMT in 2018
• The market is oversupplied, with 1.8 MMT of excess supply available globally
• The CPG industry witnessed significant savings in printing and packaging costs, due to the drop in titanium dioxide prices for the last three years
• This low-cost benefit is expected to stay for the next one year, as the market is expected to remain oversupplied
• Price of Titanium dioxide for majority of grades have increased from 2017, due to the lower operating rates, capacity rationalization by major producers and environmental regulations in China

Demand Market Outlook

• Demand from North America and Europe is expected to pose slow growth rates, as the end-use industries are matured in the region. However, in APAC, demand is anticipated to grow at strong rates until 2022
• This shift in the market power toward buyers is expected to sustain at least for the next three years

Global Market Size

The global sale is estimated to reach $18 billion by 2022, mainly driven by the demand from the paints and coatings sector. The sales value of titanium dioxide is high for the paints and coatings segment, as it accounted for more than 60 percent of the total titanium dioxide market demand in 2017

• Increased consumer spend on the automobile and construction sectors can be attributed as the major reason for the demand growth in APAC
• In the US and Europe, the markets are nearly mature with lesser growth potential compared to APAC economies
• With the global GDP expected to grow at the rate of 3.6–4.0 percent until 2022,, the titanium dioxide market is most likely expected to follow the same pace

Global Capacity–Demand Analysis

• There is enough installed capacity in the market at present, however, the capacity is getting rationalized at a faster rate. Major global players are keen in bringing back the healthy profit margins for the industry
• The market is oversupplied with 1.08 MMT of excess installed capacity as of 2017. However, issues like China environmental regulations and Venator Europe plant shutdown has impacted the global supply
• The capacity–demand gap is expected to narrow only after 2022

Capacity 

• U.S. -  No major change in capacity was witnessed in the U.S. in recent years
• Europe -  After the Venator’s Pori plant in Finland shutdown, no major change in capacity was witnessed
• Asia-  40+ low quality sulphate route titanium dioxide manufacturers in China have resumed production from start of 2019. Legal regulatory approval for these companies are still uncertain, and the production has started only with the support from local provincial authorities
• About 0.90 MMT of capacity by Lomon Billions in China and 0.05 MMT by Argex Titanium in Canada are expected to be added to the global supply base by 2019
• Small to medium-scale capacity in China may further reduce, due to environmental issues

Demand 

• Demand is expected to follow the trend of global GDP and grow at the pace of 2.8 percent until 2022, mainly driven by the automobile and construction sectors Uneven and inconsistent recovery in the global construction market has impacted the titanium dioxide market in the past

• Uneven and inconsistent recovery in the global construction market has impacted the titanium dioxide market in the past

•  With expectations of modest global growth until 2021, demand for titanium dioxide is likely to follow the same pace

Global Capacity by Production Process

Setting up sulfate process plants is highly regulated in North America and Europe. Hence, top producers have set up sulfate process plants in the APAC region to take advantage of the demand for anatase-grade titanium dioxide from both their existing and new customers.

Global Demand by Application

• Paints and coatings constituted for more than 60 percent of the total titanium dioxide demand in 2017
• The seasonal demand for these commodities has historically impacted the titanium dioxide prices
• CPG pigment inputs, such as printing inks, packaging products, and cosmetic ingredients, are expected to maintain a steady growth rate of 3.5 percent until 2021

Global Trade Dynamics

• Price and quality have been major determinants of the titanium dioxide trade globally
• North America: There has been a marginal increase in exports, mainly due to better domestic pricing
• Europe: Exports witnessed a marginal fall, due to high prices, whereas due to the availability of low-cost APAC material, imports have increased
• APAC: Only high-quality material is imported from western regions, the rest of the trade is performed within APAC regions