One of the key challenges facing TiO2 industry suppliers is the fluctuation of raw material prices. The production of TiO2 requires raw materials such as ilmenite or rutile, which are subject to market price volatility. Suppliers must carefully monitor these fluctuations and adjust their production processes accordingly to ensure profitability.
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.