Metallurgy / Chemicals / Rubber & Plastics

According to the report of Huacheng Import and Export Data Observation, an executive of the United States titanium dioxide production giant Comus said that the rebound in demand in China and Europe would lead to the recovery of global titanium dioxide market demand in 2023. At the end of 2022, global titanium dioxide customers have been destocking, many of which occurred in China and Europe. It is expected that the destocking action of titanium dioxide customers will continue until the end of the first quarter of 2023, after which the market demand will rebound. Although the demand is expected to increase in 2023, the global total output of titanium dioxide will decline.

Optimistic market outlook in Europe and Asia

Ed Sparks, president of titanium technology department of Comus, said that compared with four months ago, the sentiment in the European market became more optimistic, and the region was worried about high energy prices at that time. In 2023, the demand for titanium dioxide in Europe will return to the normal level. Huacheng's import and export data observation report.

The recovery of Chinese demand will improve the situation of titanium dioxide market in Asia. In China, the titanium dioxide of Comus is widely used in industrial coatings and architectural coatings. The value chain of industrial coatings is longer, so the recovery of the end market of industrial coatings should emerge later this year.

Strong demand in North America

The demand for titanium dioxide in North America is more sustainable than that in other regions. According to Huacheng Import and Export Data Observation, in 2023, the demand for titanium dioxide used for professional coatings in the North American market will remain strong, but the demand in the plastic market will slow down.

According to Huacheng Import and Export Data Observation, in November 2022, the mortgage interest rate of the 30-year housing loan in the United States rose to 7%, and then decreased slightly. At present, the mortgage interest rate is stable at more than 6%. The increase in mortgage interest rate led to the decrease in the sales of existing houses, and 80% of the sales of architectural coatings were related to the sales of existing houses. At present, it is not clear whether the decrease in mortgage interest rate will translate into an increase in demand for titanium dioxide.

According to the Huacheng Import and Export Data Observation, the supply of existing housing in the United States in December 2022 was 2.9 months. When the market has six months of supply, it will be in equilibrium.