According to Millennium Inorganic Chemicals, the global titanium dioxide markets are expected to show a significant improvement in 2000. Speaking at the company“s new European base in Brussels, senio…
According to Millennium Inorganic Chemicals, the global titanium dioxide markets are expected to show a significant improvement in 2000. Speaking at the company“s new European base in Brussels, senior vice-president of commercial operations David Vercollone said that the supply and demand balance will be corrected in 2000. Vercollone revealed that in Western Europe demand was down by 17% on 1998 in the first four months of 1999. But with a strong recovery in the second half of 1999, consumption fell by 1% in total. Demand status in the rest of the world was much better. Asia Pacific was storming ahead with an estimated 10-15% increase, while demand growth in the US and Latin America was estimated at 2% and 1% respectively. In terms of the wave of price, Vercollone expects this to continue into 2000 due to high operating costs. Companies scaled back production last year to prevent excess inventory build and operating rates dropped to 80% in the first quarter. But these rates rose again to 90% due to increased consumption in the second half of the year. Millennium expects industry restructuring to continue into 2000 with no greenfield or major expansions and debottlenecking as needed. It believes the importance of the supply-chain to continue to grow with TiO2 product and stock keeping unit (SKU) rationalization likely. Vercollone said that the company believes further consolidation will occur in 2000. He estimates fewer and larger producers will emerge so product lines need to be rationalized and globalized with R&D progammes focusing on globally competitive products and developing the “best technology”.