Value creation chain titanium dioxide: Ceresana analyzes the global market

06-Mar-2013 - Germany

In this new study, the market research institute and consulting company Ceresana completely analyzes the global market for titanium dioxide (TiO2) along the entire value creation chain: starting with the raw materials ilmenite, leucoxene and rutile to processed products such as titanium slag and synthetic rutile as well as individual application areas that use TiO2. Market analysts expect the global titanium dioxide market to experience dynamic growth and to reach a volume of about 7.5 million tonnes.

Large regional differences

Supply of these raw materials is dominated by, for example, Australia, Canada and South Africa. Major consumers are the producers of pigments located in Asia-Pacific, North America and Western Europe. There are also differences in which application areas use which base products. Asia-Pacific mainly processes ilmenite, whereas North America and Western Europe utilize titanium slag that is of a higher quality and more expensive than ilmenite. "Major sales market for titanium dioxide in the forms of ilmenite, rutile and titanium slag is Asia-Pacific that accounts for approx. 40% of total global demand", explains Oliver Kutsch, CEO of Ceresana. North America ranks second, followed by Western Europe. In the past, developing countries in Asia-Pacific have already been able to profit from the dynamic development of important sales markets.

Numerous applications possible

Given the importance the sale of pigments has for total TiO2 sales volume, the major application areas are paints and varnishes as well as paper and plastics. About 80% of the world's TiO2 consumption is processed in these application areas. Other pigment applications like printing inks, fibers, rubber, cosmetic products and foodstuffs account for another 8% of total market shares. Almost 12% of global TiO2 supply is used in other applications, such as the production of technical pure titanium, glass and glass ceramics, electrical ceramics, catalysts, electric conductors and chemical intermediates.

Discrepancy between supply and demand

Revenues generated with TiO2 feedstock increase more rapidly than demand volume. Between 2010 and 2012, average price for raw materials rose by almost 250%. After moderate increases of prices until the end of 2013, we forecast prices to fall in the following years. Major factor will be the rising supply of raw materials for titanium dioxide. As new capacities of ilmenite, rutile and titanium slag are likely to be created in the upcoming years, the tense demand-supply situation will relax.

https://www.chemeurope.com/en/news/141972/value-creation-chain-titanium-dioxide-ceresana-analyzes-the-global-market.html