China’s imports of US-origin titanium dioxide (TiO2) pigments shrank year on year, in no small part due to tariffs implemented on both sides. China’s exports of TiO2 to the US have also reduced significantly, with China diverting some volumes to Asian markets instead. The strength of the US dollar against the Chinese yuan and weak domestic demand provided further incentive for Chinese producers to push exports, as opposed to selling in the domestic market. Overall, supply levels were ample.

Q2 demand was weighed down by heightened US-China trade tensions. The trade war put a dent on consumer sentiment, especially in China, at a time when the seasonal lull for TiO2 pigments has already taken a toll. Demand from the key paints and coatings sector in India tapered down in June with the onset of the monsoon season. Trade in southeast Asia was dampened by the Eid ul-Fitr holidays.

Europe

European titanium dioxide (TiO2) supply has been relatively steady during Q2. However, sulphate-based TiO2 has been more available than chloride-based TiO2 due to some shifts in market share and structural reasons.

European TiO2 demand typically picks up seasonally during Q2, but the uptick failed to materialise this year due to macro uncertainty. Demand has been flat to lower than expected year on year.

North America

North America titanium dioxide (TiO2) supply was steady but ample on a very slow recovery trend. Some customers bought ample material late last year in hopes of a strong spring 2019 paint and coating season that did not materialise. Supply is expected to remain structurally short for the near future. Second-quarter 2019 demand for domestic TIO2 held mostly steady from the previous quarter but was flat to weaker year on year. Buying interest usually seen during the US spring paint and coatings season in the second quarter fell short of seasonal norms in most cases, partly on continued customer destocking. Buying interest remained mostly tepid amid ongoing weather-related and economic headwinds that diminished usually strong seasonal demand for downstream architectural, industrial and automotive coatings.