Based on this year's statistics, we analyze the behavior of the titanium dioxide-based pigments market in Latin America, where Peru, Brazil and Colombia have had a notable share.
by Duván Chaverra Agudelo
Titanium dioxide pigment is one of the products with the highest commercial movement within the paints and coatings sector, thanks to its characteristics that allow it to cover a large percentage of the industrial market.
It is no secret to anyone that titanium dioxide pigment (Ti02) is very important within the business, and the fact that it has the right properties to work in paints, varnishes or lacquers, for its remarkable coating characteristics, its opacity to damage by UV light and its ability to self-clean, which makes its demand constant but at the same time its prices are difficult to predict in advance.
For this reason, INPRA LATINA will carry out an analysis of the movement of this raw material in some of the main countries of Latin America so far in 2013 and will reveal which are the companies in each territory that have made the most imports of this product during this year (between January and August).
With the information presented by the statistics site Datamyne, we will talk about the markets of Brazil, Mexico, Colombia, Argentina, Chile and Peru, and measure their performance by comparing them with the 2012 period.
As is generally known, Brazil and Mexico are the most important countries in the Latin American economy and this is supported by the figures regarding the import of pigments and preparations based on titanium dioxide.
The surprising thing is that Mexico is currently above Brazil leading imports (in quantity), even if by a minimal margin. The North American country has imported so far this year a total of 4,164,044 kilograms of the product. Its main trading partner is the United States, where 2,730,312 of the total come from, that is, 65% of the total, Canada occupies the second position with 1,045,401 kg, which means 25% of the total. So far, Mexico has invested in this commodity a value of US$20,929,399. However, compared to 2012, Mexico has lowered its records by 11% in terms of kilograms.
Very close to Mexico is Brazil, which so far records imports of 4,131,857 kg. Similarly, the United States is the leading exporter to Brazilians with 1,205,577 kg of the total, for 29%. China occupies the second position with 854,296 kg for 20% of the total. Most importantly, Brazil has increased the number of imported kilograms of the product by 11%, compared to 2012.
Additionally, Brazilians are the main exporters of Argentina, Chile and Peru in terms of value of acquisitions (FOB: free on board). Argentina has between January and August 2013 a total of 2,976,983 kilograms, of which 816,507 kilograms come from Brazil, for a total of US $ 3,250,019. In quantity, France is at the top of the table with US $ 1,560,000, a total of 52% of the Argentine market.
The fourth position is for Colombia, a country that during the past decade and in the present has shown outstanding growth in its general economy and has become an important player in the industry in the region. Colombia has imported 1,624,343 kg this year for a total of US$6,150,772. The representatives of the northern cone mainly import these raw materials from Chile, that is, 367,405 kg of the total which means 22% overall; its second partner is Brazil with 263,450 kg and 16% of the market. Compared to the same period in 2012, coffee growers have increased the amount of imports of the raw material by 5%.
Peru, the Latin American country with the highest percentage growth in the last five years, has imported the raw material in question worth US $4,985,678 thanks to the 1,427,871 kilograms registered. Most imports are made with Brazil and Chile. From the first imported country 976,239 kg for a cost of 2,935,460 for 68% of the market; from the second country imported so far 269,494 kg worth US$762,520 and a percentage of 18%.
The most striking thing about the Peruvian sector is that they have increased their imports by 134%, between 2012 and 2013, since the previous year they imported a total of 608,993 kilograms of the product.
Chile, on the other hand, has suffered a downturn, until August 2013, it has imported pigments and other preparations based on titanium dioxide for an amount of 547,237 kg for a value of US $ 1,396,224. In 2012, Chileans had imported 1.334450 kg worth US$3,024,254, meaning that the negative difference between the two years is 60%.
In 2013, Chile imported from Brazil 83,602 kg for a total market of 15% and a value of US$298,605. But the main partner of the australes of Argentina, which sends an amount of 137,500 kg (25% of the market), followed by India with 107,500 kg and a share of 19%.
In short, Brazil, Colombia and Peru are the countries that have presented the highest growth in terms of the import of the raw material, Mexico, although it leads the market this year, and Chile, have significantly reduced their imports. As has always happened with titanium dioxide, this market does not cease to surprise the sector by its behavior, which must be constantly followed by investors.
