TITANIUM DIOXIDE | PIGMENTS
Inside the TiO2 The TiO2
market market has seen considerable volatility over
recent years. Future predictions remain challenging but demand is increasing and upward price moves seem
likely.Peter Mapleston investigates
Titanium dioxide (TiO2
) is the most widely used
pigment in the global plastics industry, with nearly 1.6m tonnes of the product being used annually in compounds based on all polymers and intended for many applications. However, in recent years, the market has become highly volatile. A variety of global factors are contributing to that, including the comings and goings of various Chinese capacities, plant outages, and general economic fluctuations. In addition, the ongoing argument in Europe over health aspects of TiO2
is not helping
calm the waters (see this month’s news section). Reg Adams at Artikol follows the TiO2
industry
closely and summarises the current situation in demand terms and quantifies the impact that has had on pricing. “Following anaemic growth of 0.6% in 2015, world TiO2
demand increased by 4.4% in
2016 and by 5.3% in 2017, reaching a peak of 6.475 million tonnes. In 2018, world demand fell by 2.9% to 6.15 million tonnes and it is expected to rise again by 3.3% this year to 6.5 million tonnes,” he says. “The volatility of demand growth has been
reflected in the volatility of TiO2
www.compoundingworld.com pigment prices. The average price paid for standard rutile-type
TiO2
pigment in the US dropped to below $2.20/kg in early 2016 before bouncing back to $3.60/kg in
Q2 2018,” Adams says. “The amplitude of TiO2 price oscillations has been even greater in Europe and the Asia/Pacific region, where prices have slipped back below the $3.00/kg level.” Some TiO2
Main image: TiO2
is a critical
pigment for the plastics
suppliers have been taking measures
to address consumer concerns about price volatility, Adams says. Notable among these is Chemours, the world’s largest supplier, which introduced its Ti-Pure Value Stabilisation (TVS) initiative at the end of 2017, offering regular customers long-term contracts at “equilibrium prices” that are adjusted in accordance with a pre-agreed and independently-determined index. Tronox has also begun offering longer-term supply contracts (in the order of 12-36 months) at more stable prices, he says. “So far, there has been a reasonably good
uptake on these propositions on the part of customers in the paint industry, but a relatively limited uptake on the part of customers in the plastics masterbatch sector. In a climate where spot prices are heading downwards, customers are
October 2019 | COMPOUNDING WORLD 41
industry but users have had to deal with intense market volatility in recent years
PHOTO: SHUTTERSTOCK
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
