TiO2 World Summit 2019 Agenda

• The macroeconomic background, industrial growth & trade
• Rising influence of other factors: climate change, sustainable development, health & safety
• Importance of pigments
• Trends in pigment end-use applications
• Recent events in the pigment & allied industries
• Impact of legislation
• Innovations & technological advances
• The world of TiO2 & coloured pigments in 2030

Amidst many global challenges, such as a deteriorating economical climate, increasing trade barriers and general inter-regional tensions, profitability pressure has an ever stronger effect on the entire colour value chain. As a consequence, the coloured and effect pigment industry landscape is changing. In this presentation, one of the leading pigment manufacturers will share its thoughts on the background for these changes and how challenges will develop during this transformation process and what implications might result. 

After a horrific 2018, the pigment suppliers’ equities have rebounded year-to-date with Tronox’s acquisition of Cristal (finally) yet to fully play out in the industry.  Furthermore, uncertainties over demand,  market stabilization pricing, Chinese supply, etc. have weighed on the sector.  Higher level, chemical equities as a whole have been mixed and materially impacted by geopolitical issues, commodity pricing, weather, etc. 

• Review historical swings in results and equity performance for pigments, downstream coatings companies and the chemicals industry 
• Detail the changing landscape and the associated shift in producers’ approach to more rational pricing behaviour
• Explain the interplay of feedstocks for producers and highlight the benefits of vertical integration
• Examine company specific factors that have weighed on/propelled equity prices
• State the current views from Wall Street and expectations for future share price performance

The proposed classification by the European Commission has been the most discussed classification file ever and despite significant concerns raised by many Member States, the Commission seems determined to move forward. The classification of TiO2 as a potential carcinogen could impact many downstream applications and severely effect the recyclability of many products preventing the Commission from meeting its own circular economy targets. The Titanium Dioxide Manufacturers Association (TDMA) have complete confidence in the safety of TiO2 and the group is investing Euro 14 Million to address any uncertainties that the Commission may have. This presentation shares where we are to date with the classification proposal and potential timeline and explores possible downstream implications should the proposal move ahead.

Lomon Billions is the largest Chinese TiO2 pigment producer and exporter and 3rd largest TiO2 pigment producer globally. During 2019 Lomon Billions will complete construction of 2 new 100,000 tonne capacity chloride pigment lines with commercial production expected in 2H 2019.

The TiO2 industry has experienced its most unstable decade.  Supply, demand, inventory, and pricing have seen unimagined variability.  China has become the leading supplier and consumer on the industry, while large chemical conglomerates have divested parts of their companies where TiO2 is now the main revenue and cash generator.  Costs are ever increasing, as the feedstock industry confronts declining reserves and less attractive replacement and growth projects.

TiPMC Consulting seeks to examine the past decade and projects the implications of today’s decisions on the 2020’s.  TiPMC examines the key uncertainties, and projects potential scenarios implied by the most current developments.

• Review data trends from current history, and compare and contrast from the past
• Identify key issues currently facing the industry
• Implications of potential scenarios for the 2020’s.
• Key upcoming decisions that will influence the industry for many years to come

Global TiO2 consumption has maintained a 3.5% CAGR in 2014–2019. With strong momentum from China, Asia motivates the increase in consumption with a CAGR of 5%. China has become the largest TiO2 consumer, predicted to consume 2.85 million tonnes of TiO2 in 2019. In the next 3–5 years, the growth rate of TiO2 demand in China will surpass that of the industry, indicating an imbalance between supply and demand that will push up TiO2 prices.

• China’s TiO2 consumption by industry and the features, 2016–2018
• Capacities and competition strategies of China’s coating, plastic and paper manufacturers, 2016–H1 2019
• Capacity elimination in the downstream segments of the TiO2 industry out of environmental and technical issues, 2016–H1 2019
• Growth drivers and investment of China’s coating, plastic and papermaking industries, 2016–2018
• Market size of the downstream segments of the TiO2 industry and price forecast of major products, 2019–2021

The aim of the presentation is to reflect on events related to CLP for TiO2 after World Summit 2017 where the topic was highlighted. In the two following years, discussions among stakeholders unveiled several complexities, uncertainties and controversies regarding CLP for TiO2. As a result, there is no conclusion yet on the Annex VI entry for the TiO2. The exacerbated divergences among those concerned eroded confidence in risk decision processes. The new EU H2020 projects on risk governance will address a transparent, transdisciplinary and science-based Risk Governance Framework (RGF) for managing nanotechnology risks and will go beyond nanomaterials.

• Harmonized classification, labelling, packaging (CLP)
• Risk Governance Framework (RGF)
• EU H2020 project NanoRIGO

Presenters from across the supply chain will give short presentations on the status of their projects and, where appropriate, expected time to market, before a joint Q&A.

Speakers include:

Andriy Gonchar | Deputy CEO-Technical Director of VELTA RD TITAN LLC

Jianwei Li | Vice President of Yibin Tianyuan Group Co., Ltd.

Bruce McFadzean | Managing Director of Sheffield Resources Ltd

Many aspects have to be considered when evaluating a Mineral Sands project.

Mine life is, with virtually no exceptions, long enough that an asset will be exposed to the variations of several price cycles.  It is therefore important to achieve long term robustness that can assure stability of the business.  

Multiple products – “by-products” or “co-products” - is one of the most sought-after features of a feedstock project.  Some products, such as rutile and zircon, have a higher intrinsic value than ilmenite.  In other cases, different timing in their price cycles, for example between TiO2 slag and pig iron, may allow one product compensate for low revenues in another product.  Vertical integration, from ore to an enriched product or from TiO2 feedstock to pigment can be another alternative to reduce variability.

This presentation will look at some different business cases to discuss the pros and cons of various product and co/by product suites.

This presentation will provide an update on the mineral sands industry and specifically high grade feedstocks for the pigment industry.  Lack of investments due to poor industry profitability (low sustained pricing) over the last several years has led to a structural deficit in supply which will last for a number of years.  Explore how Iluka is addressing the deficit and how they see the industry going forward. 

In India Feed stock of titanium pigment occurs in the form of Heavy Minerals (HM), Ilmenite, rutile  and leucoxene, titanium bearing minerals occurs in varying concentrations all along  the coastal stretches and inland areas of the country. Extensive  exploration activities have been undertaken by Government of India and resource of 1173 million tons HM has been is established. IREL is leading  state-owned enterprise to exploit such mineral resources.  On grounding the project, IREL  would be able to cater the need of pigment manufacture to the extent of 1.2 million tonnes of ilmenite.  Beside Industry need with respect to associated minerals would also be met to a larger extent.

From street protests, to Hollywood stars addressing the UN, sustainability is a topic growing visibly in the public mind. The ecological impact of purchases has increasing influence on peoples’ choices. What does this mean for something as ubiquitous as TiO2, and how does Avertana’s steel mill waste to pigment process deliver a more sustainable supply chain?

The Titanium Dioxide Manufacturers Association (TDMA) has recently updated the industry Life Cycle Inventory (LCI) for Titanium Dioxide production. The first LCI was generated in 2014, based on 2012 production data. The LCI is now updated based on 2016 production data. Until the release of the first TDMA life cycle inventory in 2014, there were no available industry LCI data for TiO2. The inventory had a reference year of 2012 and a validity of 5 years.

As such, in 2017, the TDMA initiated work to update the inventory using the association members’ annual data from 2016.  This updated LCI gives users of Titanium Dioxide accurate sustainability data to help calculate the environmental footprint of the products they make. The inventory is freely available on the European Commissions’ ‘Life Cycle Data Network’. 

The launch of FP-Pigments in 2009 introduced a unique opacifier to the Coatings and Plastics industry. Now established as a requisite material for opacity optimisation, we continue to develop our products and technical knowledge of their performance. Our understanding of how the pigments function and interact with existing “standard” TiO2 has led to new innovations and strategies to correctly target their usage across the different applications. Recent work, focussing on the understanding of the potential of optimal TiO2 spacing, has led to targeted strategies for the implementation of TiO2 reduction and optimisation which delivers both cost savings and increased industry sustainability.

• Review of FP-Pigments TiO2 technology
• Product sustainability
• Focus on TiO2 optimisation in decorative economic quality paints
• Strategic implementation in the masterbatch industry
• Application in other Coatings and Plastics areas

• Air depollution using photocatalysis of nano TiO2
• Economy and ecology synergies
• Water post treatment 
• New standards 
• EU legislative changes and environmental policies 

Thanks to sophisticated scientific characterization techniques for materials of all kind, it is nowadays also possible to identify exactly the components of ancient and contemporary paintings including the pigments used. Another aspect is the investigation and consideration of paintings under varying illumination, which was further enhanced by the development of modern light sources.

Besides selected aspects of analytical methods and material science with regard to pigments and paintings, the dialogue will cover further related subjects, such as the illumination of paintings using modern LEDs and its impact on the perception of paintings

The paint and coatings industry with its products adds a finishing touch to almost all man-made objects with protective, decorative, beautifying and signaling surface treatments. The protective aspect is a major sustainability factor in itself; substantially extending lifecycles of those objects. A major challenge for the industry is to make paint and coatings products more sustainable and recyclable. Pigments play a major role in their performance as to protect surfaces from the elements, reduce corrosion and provide functional properties. Sustainability aspects thus translate into pigment choices and design. The decorative aspect faces ever more discriminating customers with choices to fit their individual desires. Special effects entered markets that did not see those options several years ago. They also open unprecedented choices to customize consumer products to express one’s personality. Although the gap in purchasing power between countries narrow, it still offers opportunities to tap into those vast, still developing markets in e.g., Asia and Latin America. Providers who are able catering to those market conditions with lower cost, yet attractive options will establish footholds for the decades to come. In the same context, making products locally and adapt to simpler infrastructure and capabilities will offer opportunities in those markets. Dispersing pigments to their optimum degree is one of the core competencies of the paint and coatings industry. Making this process easier by offering self- or easier to disperse pigments has been a focus for some time and will continue to back integrate this competency into pigment manufacturing. The coatings of the future are expected to offer more functionality like, e.g., conductivity, thermal properties, energy management with pigments or “functional particles” expected to play an important role in realizing those. Alternatives to generating color with other means than light reflection and absorption of chemicals like surface iridescence is researched on.

Members of the Advisory Board from both conferences discuss how the information that has been shared over the last two days should influence your everyday business activities from today.