TiO2 capacity squeeze looming? (titanium dioxide)

Not all the ingredients exist for production expansion

Last year in this forum, I addressed some of the factors that are impacting titanium dioxide producers in ways that cause Ti[O.sub.2] supply to be increasingly less responsive to the business cycle.

Rather than repeat last year's theme, perhaps the salient points can be expanded to further clarify the outlook for the coming several years.

To briefly summarize, demand continues to reflect growth of Ti[O.sub.2]-consumption markets, modified by current national and regional economic conditions. Supply increasingly is influenced more by the cost of and time spent for constructing additional capacity, particularly grassroots production …