Right: consumer
electronics need high- grade TiO2
products and demand is high
additives | TiO2 “TiO2
Applications such as
products’ price levels increased dramatically
from late 2010 through 2012, enticing many end customers to consider alternatives,” says Bender. “While TiO2
is nearly impossible to formulate out
completely, modest reductions in usage were noted in plastics applications immediately following this period due to lack of supply and high prices for TiO2 TZMI has not noted any specific TiO2
demand destruc-
tion beyond the declines of specific compounds themselves. Most plastics applications are growing as plastics continue long-term substitution of other materials and many need TiO2
for UV protection, durability, opacity, and other functional properties.”
Growth expectations In general, growth in plastics will mirror general economic trends, with observers noting that current demand in Asia-Pacific, Latin America and Europe is sluggish. “So far, supply has been disciplined in 2016,
Below: PVC construction profiles are a major market for TiO2, where it contributes to product durability
lagging demand during the first half of the year. TiO2 producers are running down inventories instead of making more pigment as inventory levels have been high since 2012, peaking in mid-2015. The market turned during December 2015, and despite producers’ efforts at increasing production to meet demand, inventories continued to fall in Q2 2016. TZMI does expect some cooling off in the second half of 2016, but most of the slowdown will be in the seasonally weak Q4 2016 period. Producers will likely rebuild depleted inventories in Q4 2016 and again in Q1 2017, and the level of rebuild (and any overshoot in inventory) will set the stage for the pricing cycle in 2017,” Bender says. “Generally, we see an increased commoditisation of as producers in Asia climb the value chain. Some
TiO2
capacity will be shut in certain regions where it no longer makes sense to have a TiO2
will emerge. TiO2 plant, while others buyers should be aware of these shifts
and prepare accordingly. The industry has struggled with overcapacity since 2008. Demand shifts were partially
responsible for the shift, as well as China’s fixed asset spending spree. Demand in North America remains below peak levels of a decade ago, as industry has off-shored to Asia, and the TiO2
products.
demand has moved with
it. Europe has seen more ‘flat’ growth over the same period. The explosion of demand in China coupled with the dramatic overbuild in the country has led to China shifting to a net exporter of TiO2
products,” he says.
Capacity utlilisation Bender believes capacity rationalisation in North America and Europe has resolved some of the overca- pacity issues in the past 18 months, but more is necessary to return the supply and demand into a longer term balance. “Low profitability at smaller Chinese producers has pushed many to idle capacity temporarily in 2015 and 2016. How much of this capacity remains down is a big question mark, but some leading producers believe that a substantial portion of the currently idled capacity in China will become perma- nently idled. The rationalisation and consolidation of low-profitability capacity in China has become a long term trend, and there is no reason to believe it will stop in the near term,” he says. “The other major evolution – which has begun – is that of higher quality chloride capacity in China. This will take time. The leader in this race now is Henan Billions, although others like Xinli have also been in the game for some time now. Grade development, technical service capabilities and product quality will take time, but early signs point to a likelihood of success with Billions. Others will follow. This evolution should be thought of in years rather than months,” Bender explains.
TiO2 characterisation
Andriy Gonchar, head of R&D and QA at RD Titan Group Innovative TiO2
development of TiO2 38 COMPOUNDING WORLD | October 2016
- a company focused on research and technologies and manufacturing
www.compoundingworld.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112
