tio2 pigment annual review sample
TRANSCRIPT
For more information contact TZMI | +61 8 9359 6000 | [email protected] | tzmi.com
TiO2 PIGMENT ANNUAL REVIEW SAMPLE
NEW EDITION TO BE RELEASED Q2 2014
EXECUTIVE SUMMARY
1.0: INTRODUCTION 1.1 TiO2 pigment and characteristics1.2 TiO2 pigment market1.3 Structure of report1.4 Confidentiality and disclaimer
2.0: THE TIO2 PIGMENT INDUSTRY 2.1 The pigment sector2.2 The titanium supply chain2.3 Historical perspective
3.0: PIGMENT MANUFACTURING TECHNOLOGY
3.1 Introduction3.2 Sulfate process3.3 Chloride process3.4 Current trends in processing3.5 Alternative technologies
4.0: PIGMENT SUPPLY4.1 Pigment supply in 20134.2 Major producers4.3 Pigment supply outlook to 2015
5.0: PIGMENT DEMAND AND PRICING 5.1 Pigment demand in 20135.2 Pigment demand by end-use sector5.3 Pigment trade in 20135.4 Seasonality5.5 Inventories5.6 Imports/exports
6.0: PIGMENT PLANT ECONOMICS 6.1 Pigment pricing in 20136.2 Overview of costs6.3 Outlook for pigment plant costs
7.0: TRENDS AND OUTLOOK 7.1 Wrap of global industry developments in 2013 7.2 Demand outlook7.3 Supply outlook7.4 Supply/demand balance7.5 Outlook to 2015
8.0: STRATEGIC ISSUES
APPENDIX 1 – PRODUCER PROFILES
APPENDIX 2 – TZMI PIGMENT PLANT LOCATOR
PROPOSED TABLE OF CONTENTS*
* minor changes may be made to this outline prior to publication
INTRODUCTION TO TiO2 PIGMENT AND PIGMENT INDUSTRY
2012
TiO2 PIGMENT
HISTORY OF TiO2
PIGMENT
SAMPLE OF 2013 EDITION
Overview of characteristics, supply chain and producers.
Historical perspective and overview of markets from 2008 to 2011.
TiO2 markets and major events.
PIGMENT MANUFACTURING TECHNOLOGY
Detailed explanation (including flowsheets) of the chloride and sulfate processes, finishing and alternative processes used to manufacture pigment.
Discussion of GDP links to TiO2 consumption, demand by region and end-use applications.
PIGMENT DEMAND AND PRICING
REF 8730
Globale TiO2 demand by end-use sector in 2012
Architectural coatings
31%
Other coatings25%
Plastics24%
Paper8%
Inks4%
Fibres2%
Other6%
© TZMI 2013 NOT FOR REPRODUCTION 2000
11%2012 27%
(% global demand TiO2 pigment)
CHINA
1st tier products represent
65–70% of global demand
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Varennes,C
Kemerton, S
Langebrugge,C
Kemerton,C
Botlek,C
Botlek, S
Jurong,C
Langerbrugge, S
Kwinana,C
Yanbu,CLake
Charles,C
TelukKalung,S
Tracy,S
KuanYin,C
Osaka,S
Stallingborough,S
Burnie,S
Onsan,S
Antioch,CAkita,S
Antwerp,S
Baltimore, SChin Sin,S
Savannah, S Le Havre,S
Grimsby, S
Savannah, C
Baltimore,C
50
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100
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140
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0
50
100
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1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Real global price index2011 = 100
Capacity change '000 tpa
C = chloride ; S = sulfate
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PIGMENT SUPPLY
PIGMENT PLANT ECONOMICS
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Image courtesy Sachtleben
Supply developments
Costs of production
Major producers
Comparisons between regions
Regional analysis
Sulfate & chloride process
economics
Profitability of TiO2 pigment producers declined during 2012, with the 5% increase in price more than offset by rapidly rising input costs.”
“
STRATEGIC CHALLENGES FOR THE INDUSTRY
TRENDS AND OUTLOOK
Trends observed in 2012 analysed and assessed for impact on the TiO2 pigment sector. Historical and two-year forecasts for demand and supply provided.
This section discusses the challenges faced over recent years, and emerging themes for TiO2 pigment producers.
De-stocking has major impact on markets in
2012
TiO2 pigment production
down in 2012
In 2012, China continued to out-produce
domestic needs
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After experiencing a rocky end to 2012, the TiO2 pigment sector continued to struggle with the market bottoming out during the first three months of 2013 and into the June quarter. With the worst of the slump hopefully behind it, the TiO2 pigment market still faces some challenges in its attempt to regain lost ground.
”“
APPENDICES
APPENDIX 1 Pigment producer profiles
APPENDIX 2 Pigment plant locatorThis KMZ file allows the user to locate major pigment plants using the program Google Earth.
SAMPLE PROFILE
Image courtesy Sachtleben
SAMPLE EDITION
SAMPLE PAGES
iT Z M I
ExEcuTIvE SuMMary
Executive summary
TiO2 pigment and characteristicsTiO2pigmentisusedpredominantlyintheproductionofhigh-qualitysurfacefinishestoimpartopacity, brightness and whiteness. It extends the life of the medium it is incorporated into by absorbingandreflectingultravioletradiationthatwouldotherwiseacceleratethedecompositionof the medium.
TiO2 has many unique characteristics, including:
• Exceptionalopacifyingcapabilityduetoitshighrefractiveindexandconsistentfineparticlecomposition that assists in the scattering of incident light. (Particles with a consistent average size of 0.2–0.3 microns – around half the wavelength of visible spectrum components – are essential in providing effective scatter);
• Whitenessandbrightnessenhancedbythepurityofthecrystalandthereflectanceandsizeofthe particle;
• Inertnesstomostchemicalreagents;and
• Non-toxicity.
TiO2 has two crystal forms: rutile and anatase. The two dominant methods for producing TiO2 suitable for pigmentary applications are the sulfate process and the chloride process. Anatase-grade pigment is only made by the sulfate process, while rutile-grade pigment can be made by either the sulfate or chloride process.
Pigment producersThe industry is dominated by large multinational corporations operating multiple plants in numerous countries. xxx global producers provided close to xxx% of the global nameplate capacity in 2012:xx, xxxx, xxxx, xxxx and xxxx. xxxx and xxxx operate only chloride route plants while the other three global producers operate plants that use both sulfate and chloride route technologies.
Spurred by the growth of domestic demand, China’s production base has grown substantially and now accounts for xxx% of global capacity.
Titanium supply chainTitanium mineral feedstock is used to produce titanium dioxide (TiO2) pigment. Of the TiO2 minerals mined and processed, more than xxx% is used for pigment production using either the chloride and sulfate processes.
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TiO2 PigmenT AnnuAl Review 2013
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DuPont16%
Cristal11%
Huntsman8%
Kronos8%Tronox
6%Sachtleben4%
ISK3%
Other - China34%
Other - non-China10%
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©TZMI 2013
Global producer capacity share in 2012
Industry production capacity grew to xx million tonnes in 2012, from approximately xx million tonnes in 2011. The industry is dominated by xxx producers that together account for xxx% of global capacity.
Among the seven largest multinational producers, xxx% of available capacity utilises the chloride process, including Exxaro’s share (which is now part of Tronox).
While North America has undergone an almost complete conversion from the sulphate process to the chloride method, Western Europe adopted sulfate technology later than the US and approximately half of its capacity involves this method.
Access to chloride technology in China is virtually non-existent and, as a result, capacity growth there has mostly entailed the sulfate process.
PricingTheprofitabilityofTiO2 pigment producers declined during 2012, with the 5% increase in price more than offset by rapidly rising input costs. Expenditure escalated primarily as a result of the full implementation of price increases for TiO2 feedstocks, most notably slag products, and low utilisation rates that inhibited the ability of producers to absorb these costs on a unit basis.
Although there is a substantial amount of international TiO2 commerce, with almost 65% of trade byvaluenowcrossinginternationalborderstoreachcustomers,thereremainssignificantregionalvariation in TiO2 prices.
Major determinants of TiO2 price levels and trends in a particular market at a particular time comprise the following:
• Theglobalandregionalsupplyanddemandbalance;
• Globalandregionalmanufacturingcosts,notablyforfeedstock,energy,manpowerandrawmaterials;
• Changesincurrencyexchangerates;
• Theprofitabilityoftheindustry;
• Thefinancialpositionoftheparticipants;
• ThequalityoftheTiO2 supplied; and
• Thedegreeofconsolidation/globalisationoftheparticipants.
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ExEcuTIvE SuMMary
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2011 = 100Real price Index
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©TZMI 2013
TiO2 price index, real US$ per tonne basis: 1980–2012
Titanium feedstock is the most costly raw material input to the production process. In 2010, the average chloride plant spent xx% of its manufacturing cost on sourcing feedstock, whereas the average sulfate plant spent xx% of its manufacturing cost on feedstock, with a global average of xx%. In 2011, the average chloride plant spent x% of its manufacturing cost on sourcing feedstock, whereas the average sulfate plant spent xxx% of its manufacturing cost on feedstock, with a global average of xx%. TZMI believes it is likely that feedstock costs will continue to increase insignificanceastheimpactofnewcontractsismorefullyrealised,andexpectsfeedstockcoststo reach xx% of total manufacturing cash costs.
A full update on the outlook for supply and demand of feedstock can be found in TZMI’s Titanium Feedstock Annual Review 2013.
Demand outlookInrecentyears,demandgrowthinAsia-Pacific,CentralandEasternEurope,theMiddleEastandAfrica and South America has been stronger than the more mature economies of North America, Western Europe and Japan, where demand per capita has fallen from an average of around x kg in 2003 to approximately xx kg in the period from 2009-2011 and approximately to x kg in 2012.
Global demand is expected to partially recover in 2013, and fully recover in 2014. To fully understand therationalefortheyear-on-yearchanges,onemustfirstunderstandwhathappenedin2011and2012.In2011,demandandconsumptionpatternswereinflatedduetotheconcernsaboutthe supply chain.
In late 2011, economies around the world slowed, and Europe slipped into recession. As customers de-stocked inventory, the ‘whiplash’ caught many TiO2 producers off-guard. A slight recovery in Q1 2012 only gave false hope to what was a disastrous second half of the year.
While effective growth rates in 2013 and 2014 appear to be very high x% and x%, respectively – the rates must be taken in context of the substantial downturn in 2012. Demand in 2013 is below levelsexperiencedinboth2010and2011;demandin2014isthefirstyearinwhichdemandshould exceed 2011 demand.
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Includes
90 pages, plus
26 company profiles
49 easy-to-
read charts, images and
detailed tables
electronic version (PDF)
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