Economic sentiment remains strong globally, and is expected to remain so through 2018. Demand for TiO2 is robust, with both a strong housing market and healthy automobile sales. TiO2 demand growth for 2017 is forecast at around 2%, with 6.1 million tonnes in demand for 2017-2018.
Given the increased sales volumes so far in 2016, the TiO2 market has begun to feel tighter than it has in years, which is providing confidence to some producers that the worst is behind the industry for the near term.
Successive international TiO2 magnates raised their product prices in Dec., 2015. The market intelligence firm expects that after a short time this will prevent the TiO2 price in China's market from falling and it's even possible that it will cause the price to rise in early 2016.
A recent trip to China gave a clearer understanding of the inorganic pigments market, how China is responding to its slowing economy and the environmental problems it faces, and strategies that suppliers are forming to take on these trends.
What is clear is that a fresh wave of M&A activity is necessary for the long-term development of China's TiO2 industry. The market is currently saturated by small-scale producers, almost all of which churn out products of similarly inferior quality.
Huntsman Pigments promoted many of its specialty titanium dioxide and color pigments at Chinacoat. TIOXIDE®TR81 pigment delivers excellent opacity and optical performance for durable industrial coatings that need to provide protective performance and stunning aesthetics in challenging environments.
