≤0.4

Coronavirus-related shutdowns in the first half of the quarter prompted forcible measures at several small-scale ilmenite factories in China and India, subsequently exacerbating the Titanium supply problem. The chemical's tight supply condition was extended until the end of the quarter, as few participants were heard holding cargoes in expectation of an exceptional surge in its seasonal demand.

China’s government is working on its plan to eliminate outmoded capacities of TiO2 and strengthen environmental protection measurements. Small and middle-sized enterprises, with a production capacity under 50,000t/a, are the ones to suffer. They mostly get merged or need to withdraw from the market. Without their production capacity of about 500,000 tonnes yearly, the domestic output might shrink about 20%. This will enhance the power of listed companies in China immensely, which is one of the main reasons for the effort to go public.

Worldwide Lithopone Industry to 2027 - Use of Lithopone in the Paints & Coatings Industry is Driving Growth - ResearchAndMarkets.com

③ Paper making industry: Paper making and paper products industry is the third largest application industry of titanium dioxide. Paper using titanium dioxide has good whiteness, high strength, luster, thin and smooth, and is not easy to penetrate when printing. Under the same conditions, the opacity is 10 times higher than that of paper using calcium carbonate and talc powder, and the weight can also be reduced by 15% to 30%. The amount of titanium dioxide in decorative paper accounts for 20%~40% of its raw materials, and the amount of titanium dioxide in other papers is about 1%~5%. Due to the continuous adjustment of the industrial structure of the paper products industry from 2016 to 2018, according to the data of China Paper Association, the output of China's paper products in 2019 was 72.19 million tons, a significant year-on-year increase of 29.4%, and the use of titanium dioxide increased significantly.