Metallurgy / Chemicals / Rubber & Plastics

According to a report from Huacheng Import and Export Data Observation, an executive from the US titanium dioxide production giant Comus said that the rebound in demand in China and Europe would lead to a recovery in the global titanium dioxide market demand in 2023. At the end of 2022, global titanium dioxide customers have been destocking, with many destocking activities occurring 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 market demand will rebound. Although demand is expected to increase in 2023, the global total production of titanium dioxide will decline.

Optimistic market outlook in Europe and Asia

Ed Sparks, president of the titanium technology department at Comus, said that the sentiment in the European market had become more optimistic than four months ago, when the region was concerned about high energy prices. In 2023, the demand for titanium dioxide in Europe will return to normal levels, as reported by Huacheng Import and Export Data Observation.

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

Strong demand in North America

The sustainability of demand for titanium dioxide in the North American market is better than 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 for plastics will slow down.

According to Huacheng Import and Export Data Observation, in November 2022, the mortgage interest rate on 30-year housing loans in the United States rose to 7%, and then decreased slightly. Currently, the mortgage interest rate is stable at over 6%. The rise in mortgage interest rates has led to a decrease in existing home sales, with 80% of architectural paint sales related to existing home sales. It is unclear whether the decrease in mortgage rates will translate into increased demand for titanium dioxide.

According to the National Association of Real Estate Agents, the supply of existing homes in the United States was 2.9 months in December 2022. "When the market has a supply of 6 months, it will be in equilibrium," Huacheng Import and Export Data Observation reported.