additives | TiO2
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
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.
PVC construc- tion profiles are a major market for TiO2, where it contributes to product durability
“TiO2 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,
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
42 PIPE & PROFILE EXTRUSION | January/February 2017 products.
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 neces- sary 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 permanently 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 – concurs that current TiO2
- a company focused on research and technologies and manufacturing demand in the plastics
industry is around 1.5m tonnes per year, around 25% of global consumption. However, he emphasises that characterisation of different types of TiO2
understanding the overall market for plastics and the companies that supply them. “We distinguish three main typesof TiO2
is important to for use in the
manufacture of plastics,” says Gonchar. “This classifica- tion has been formed over the past 20 years, influenced by the world’s major producers - Chemours, Huntsman, Cristal, Kronos and Tronox. Other TiO2
the line of the top five manufacturers.” Plastics Type 1 includes grades characterised by special surface treatment using small amounts of aluminium compounds (or without any inorganic surface treatment) and special organic additives, which typically
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