Global titanium dioxide market may turn better

Demand began to recover and supply became tight. Rising costs and weak demand led to a sharp decline in titanium dioxide production profits in 2012. However, the recovery of the U.S. housing market and the strengthening of the Asian economy led to an optimistic outlook for the global titanium dioxide market this year.

Although the global titanium dioxide manufacturers will not release their performance reports for the fourth quarter of 2012 until February, the industry generally believes that the performance of the fourth quarter is unlikely to improve compared with the previous quarter. The overall profitability of titanium dioxide manufacturers in the third quarter of last year was very disappointing: Tenot titanium dioxide sales revenue in the third quarter of the same year, the company's titanium dioxide business realized an operating profit of 112 million dollars; The sales revenue of titanium dioxide of Rockwood Holding Company in the United States dropped 9% year on year to $230 million, and the adjusted profit before interest, tax, depreciation and amortization (Ebitda) fell 63% year on year; The sales revenue of Huntsman's pigment business decreased by 30% year-on-year to $319 million, while the adjusted Ebitda decreased by 55% year-on-year to $72 million; The sales revenue of DuPont's high-performance chemicals business (including titanium dioxide) decreased by 19% year-on-year to US $1.7 billion, and the operating profit before tax decreased by 37% year-on-year to US $372 million; Cronos' sales revenue decreased by 14% year-on-year to $473 million, and net profit decreased by 59% year-on-year to $35 million.