Tronox Holdings plc

I wouldn't expect that all the exports are going to go away. I mean, the reality is China is going to be a competitor of ours for a long period of time, and we have to be competitive with them. And these trade measures are a bridge for us to continue to improve our cost profile and be able to compete fairly. That being said, we do think that the duties that have been announced and were stayed, and now there's been a motion by the Trade Defense Agency in India to reinstate those. Those numbers range from on the low end to 460 to the high end to 681. And we believe that those are going to be enough to help us manage that business in a better way. And when you think about our volumes in India, even though those duties have been stayed, our volumes are still growing in India. Even though the exports from China into India in the last month were higher, our volumes from Q1 to Q2 continue to increase.

Thank you.

Your next question comes from the line of Josh Spector with UBS. Please go ahead.

Josh Spector Yeah. Hi. Good morning. I wanted to ask just on your comments around the surcharge to structural pricing kind of transition here. So how much pricing in 2Q would you say was from surcharges and what's kind of left within the mix today?

Josh Spector Yeah. So thanks for your question, Josh. So what's left in the mix today is a small portion that's largely tied to sulfur. And again, the majority of it's tied to sulfur. There's still a few that are lagging out there. In the second quarter, I think we had some color on that in the first call. It was about 60% to 70% of the price that we increased in the first quarter was strictly pricing. And the balance was surcharges. And so when you think about that transition into Q3, where we're still talking mid single digit price increases, We converted some of what was surcharges into longer-term pricing because that longer-term pricing is stickier than surcharges.

Okay, that makes sense. If I could ask more broadly just about the industry from here, it's nice to see Western players starting to get more price, but I guess when we look around Some of the industry was tight because of Western outages from some of your competitors that are now ramping up supply. There's potentially more supply in Europe. China supply seems like it's just not going away from the export market for whatever reason. I guess if we don't have a good coding season next year, does this create a headwind that means that it's going to be harder to keep price and potentially get back price? Or if not, why do you think that would trend the other way?

yeah look it's a great question and um what i can say is that the market will recover but i can't be specific on what it is going to recover um i think the important part is what we're seeing right now is all on the back of what you just described which is a structural shift in the supply base and when pricing was moving down over the course of the last you know several years um what you saw was you know customers weren't really buying much inventory because there was always an assumption that price might be lower the in the next quarter or the next month so as pricing starts to move up what we saw is that customers started to rebuild some inventory and very quickly what we you know we got to the point where we talked a little bit about having constraints around what we can even take on the order pattern because we're selling everything that we're making now we drew down inventory so what that says is that any kind of a What a flex on demand, whether it's structural or true demand drivers, the industry is having a tough time, even with China filling that on a on a short term basis, because there's you have to remember, even with the capacity coming back in Spain, the capacity coming back in Italy and the announcement that, you know, Roman is starting their facility in the UK in August and they'll start to ramp that up. And to be clear, we don't know any more than what's been reported. There's still more than a million tons of capacity that's come offline net. And that's why I still think what's happening right now, not on the back of demand, there's more upside when the market does recover. And I can't say there won't be any downside on pricing. But right now, we're in a comfortable place. And we think we're on the right trajectory with two quarters of price improvement under our belt in a market that has not been supported by demand improvement.

Great, thank you.

Again, if you'd like to ask a question, press star one on your telephone keypad. Your next question comes from the line of Duffy Fisher with Goldman Sachs. Please go ahead.

Yes, good morning, guys. First question is just, on the midpoint of your guide you're up sequentially about 32 million dollars in EBITDA could you do just kind of a quick bridge like you did on on slide seven you know how much of that 32 million improvement comes from price um obviously volume probably is a little bit of a negative because you called that as down and then how much is getting better on cost yeah thanks stuffy you know we don't want to give specific numbers there obviously we've given a guide around what we expect

you know high level volumes and pricing to to drive but pricing is driving the majority of the improvement quarter over quarter you know we are seeing declines it's more seasonal related on on ti2 and zircon but we're also seeing a benefit on the cost if you recall we did have a couple of significant outages in q2 that will be added back to q3 as well as better costs from from our sustainable cost improvement program as well as shutdowns of our Balik and Fuzhou facilities. So we are seeing that net be a slight benefit. However, obviously there's a lot going on with the war that we can't control. We're seeing costs escalate. We're gonna try to cover as much as we can, but that potentially could be a headwind. And as you've already seen on the Q1 and Q2 year over year graphs, bridges that we provided, FX is a huge headwind year over year. So we're needing to overcome that. But again, the biggest item driving our earnings improvement is pricing.

Thank you. And then just a clarification, the comment you guys were making around Zircon where inventory is going to limit sales in Q3, is that because you've drawn down your inventory so you don't have as much excess inventory to sell above production? Or that's inventory at your customer level where they've kind of built back some inventory and maybe their demand pull isn't as strong?

no that's our inventory and our ability to meet that and it's really more towards the end of the quarter so there could be some volume slipping out as far as rolling but we have rolled we have pulled back our inventory significantly with the last three quarters of high sales so that's our inventory being lower and again it's not so much having it but having it at the right time and making sure we get those shipments out but that's that's why we made that comment moderate

moderating us slightly due to inventory and that's the reason why we are bringing the west mine up because that will give us a significant amount of zircon inventory later in the year terrific thank you guys your next question comes from the line of Jeff Dzikowskis with JP Morgan please go ahead uh thanks very much um i think chinese imports into europe year to date are up 25 percent

and the you know they're obviously high tariffs in Europe what do you make of the increase in Chinese imports if you see it the same way yeah Jeff look um again we get the question on the Chinese imports a lot and they were up and when you think about a lot of those exports it was a big increase in India there was also a significant increase In chloride exports, which I'd say wasn't abnormal for the last couple of months, but it's just noteworthy. I think that's coming from the fact that sulfur prices have gone up so much that some of the chloride producers over there, and if you think about nameplate or actual production that we're forecasting out of China in 2026 is about just under 5 million tons. and about just under a million of that is chloride. They're starting to export some of that material. And China is not very strong right now. So we still sell in China. China is a weak market, even though we don't have an asset there any longer. So there is an element of continuing to push exports out because the market in China is weak. And then you've also got the issue where we've got it on pretty good authority that there are a number of producers over there that are containing productions and they've got inventory but they need to generate cash so I can't be specific as to exactly why they're doing it but exports are up the big swing was in India and I'll restate what I made earlier even though their exports were up there was some repositioning in India where some suppliers aren't supplying as much there So our volumes from Q1 to Q2 went up in India as well. And I think there could be an also one last element of, you know, I made reference that the trade agency in India has now recommended the duties come back online. There was an assumption that that could happen. Those duties won't be retroactive. So there could be some movement of inventory over into China, I mean into India, knowing that those duties are going to come back. So there are Thank you for joining us.

from China on chloride. Obviously, you know, they're exporting chloride because sulfur prices gone up significantly. So it is more economical for them on a chloride basis.

And then maybe a financial question. Two parts. Your gross profits are down year over year in the quarter and for the six months. Should we read that as whatever the price and volume increases have been, they've not been large enough to outstrip your cost inflation. Is that a fair appraisal? And second, do you expect your inventories at the end of the year to be lower than they are today? And maybe if you can tell us how you've brought down your inventory.

Sure, good questions there. I would say on your first question, from a gross margin perspective, obviously costs have been inflated significantly year over year. In particular, following the war, prices have skyrocketed in sulfur, which we do consume some of it, as well as some other costs. I think you need to keep in mind that we had two major outages in Q2. So all that cost with no production does go and expensed in that quarter. versus if you had some production above a certain level you would spread it out it would go to inventory so i think that's part of what's missing we have seen pricing increasing and provide more gap versus cost increases generally in the first half of the year yeah and just maybe on those two outages remember the outage on the sr kiln was north of 50 days and the uh stallenborough outage was scheduled for 24 and it went to 29 so

all of the costs that we had that could have been into a small amount of inventory based on Stallenboro we absorbed all those in the month of June and that's why we're going to have better costs going into the third quarter because we took that hit in the form of an idle facility charge in the third quarter when in the month of June I mean second quarter in the month of June yeah I'm here second on inventory uh obviously you've seen q2 uh we we took a big change in our

Thank you for joining us. we will ramp up those those facilities but we will be able to sell them we believe um and so we do still see inventory lowering in the second half of the year it's just not going to be the extent of what we brought down uh in q1 and q2 thanks for if you want to finish the working capital side of it um we do see um obviously um you know more cash generating in q3 and q4 from ar this is uh you know we expect volumes to be down a bit so

we do expect to collect more in the AR and in that range of EBITDA that we talked about in the third quarter we're still expecting to draw more finished goods inventory down because we've got more sales than we're producing but in the fourth quarter again you're going to see seasonal shift and typically we would build some inventory in the third quarter in the fourth quarter but that will largely be TIO2 inventory we don't believe we'll build any Zircon inventory

Maybe if I can squeeze in the last one, why should your free cash flow in the fourth quarter be much better than the other quarters? What's going on in the fourth quarter? What are the levers?

Yeah, I mean, the biggest driver is what I mentioned. It's working capital, primarily AR. So as you know, it's seasonally down. So you should collect from that. And secondly, if you look at, for example, our profile quarterly, We have two big interest payments in first quarter and second quarter, each $50 million. So you have to add that back to Q4. So that gives us confidence that we're going to generate significant amount of free cash flow in Q4.

OK, great. Thank you very much. Thank you.

Your next question comes from the line of Hassan Ahmed with Olympic Global. Please go ahead.

Morning, John. John, a question around cost curves. You know, obviously, social availability remains an issue. Sulfuric acid prices have gone up a fair bit, and obviously China is curbing the exports of sulfuric acid as well. So, I mean, as you look at the cost curves, what percentage of the industry do you think is in the red right now? And part and parcel with that, I mean, historically over the last couple of quarters, You guys would give an update on the rationalization side of things. So where do we stand on that front as well?

Thanks, Hassan. So look, it's really hard to get a super accurate read on exactly what's going on in China, but I'll give you anecdotally what we've heard recently. There are as many as 19 to 20 producers in China that are curtailing for the very reason that you just identified. sulfur prices i think on our last call you know we were talking about pricing being up 300 percent you know sulfur prices are up 400 percent now um and on a sulfur basis that's like a one-to-one that sulfur goes up you've got to raise the price for to2 accordingly we've also made that correlation to sulfuric acid as it goes up a hundred dollars you have to raise the price three hundred dollars so um pricing has started to move you've got this dynamic where We talked a little bit about China's increase in exports of chloride versus sulfate. Pricing for chloride TO2 hasn't gone up as much as the costs have gone up for sulfur. So I guess short answer, I would say the majority of producers are now not able to pass through all the sulfur charges. Again, we're using surcharges for sulfur, both in Taiwan and Brazil, but there's a limit to what we can do. to make sure we continue to maintain competitive activity and we maintain our share. So I would say the majority of them are and one of the reasons are losing money but one of the reasons exports are still increasing and again it's hard for me to gauge that month to month. One is I think there is a belief or an understanding that duties are going to come back in India so that's why you saw that channel get filled up a bit but there were exports increased in a lot of other countries And I think the Chinese are continuing to push volumes out because they need to generate cash, not so much for making money.

Fair enough. And, you know, one of the points that you raised, which I think is kind of interesting now that there's more clarity around the anti dumping measures in India in particular. I mean, obviously, I think there was Some concern around elevated exports coming out of China. So do you really think that, you know, ahead of potentially these anti-dumping measures, the Chinese may have elevated their exports to India in particular? And could that be an opportunity for you, call it, post the 90-day period that you guys talk about of garnering more market share out in India in particular?

I agree with that 100%. One of the reasons they're doing it is because although they have said they're going to reinstate the duties there isn't going to be any retroactive duty on that so customers are I would say the issue is there's not a lot of opportunity for them to store material over in India based on uh there's not a lot of those Chinese companies don't have a lot of wholly owned subsidiaries over there so I do think there is a bit of customers buying more of the Chinese on the assumption that those duties are going to go away and I would agree with both your timing and the definition of how you describe what the Chinese are doing at this particular stage on the assumption that those duties are coming back.

Very helpful, John. Thank you so much. Thank you.

Your next question comes from the line of John Roberts with Mizuho. Please go ahead.

Thank you. You mentioned LB planning to ramp in the UK here. Is your understanding

that that will only be finishing or do you think they're attempting to refire the furnaces and do you expect that product to make its way to the eu as well so i can only tell you what i've read which is public um is that they're talking about starting up one chlorinator so when you think about that facility they've got multiple chlorinators one of them apparently is in a position where they're going to restart it they've got one oxidation line so they're going to be running that asset they talked about recommissioning and starting in August so we'll have to wait and see what that is it's at a very low rate of production running they've only got one oxidation line so you're going to be putting very little titanium tetrachloride to that oxidation line it doesn't feel to me like it's going to run super efficiently the question and that's if in fact they do so I don't have any more information than what's public right now and as we get more information and can share it, we will. With regards to if they produce it in the UK, they could sell it into Europe. I can't tell you if they're going to be bringing raw pigment in and trying to finish it there. That wouldn't be in alignment with the trade barriers that are put in place, but I'm not going to speculate on what they're doing. We'll continue to evaluate that as we monitor trade flows and to the extent we can provide an update.

Before they update you, we will. And just a reminder that that facility was high cost, which is obviously why it got shut down. and obviously running that without all the lines up would imply that the cost would be even higher.

If you go back to the points we made when we were slowing our production down, one thing that we found is that one oxidation line facilities running below 70% capacity don't run very well.

Got it. And then on rare earths, what would be the gross capital requirements for phase one and then phase two?

so look at this particular stage we haven't provided a lot of color on exactly how much capital we are looking at the definitive feasibility study on what that acid leaching and cracking facility will look like that'll be done like I mentioned on the prepared comments in the third quarter of 2027 and although we've got some ideas a lot of that is going to depend on the feed rate you know who we're working with because again it's just a little bit too early to be giving you actual capital numbers The fact of the matter is, it's public that both EFA and Ex-Im Bank have given us a non-binding indication of about $600 million, but we're looking at lots of funding sources at this stage.

Great, thank you.

Your next question comes from the line of Frank Mitch with Fermium Research. Please go ahead.

Thank you. I want to come back to India. Obviously, you mentioned how the Trade Defense Agency has recommended putting the duties back on, but the Ministry of Finance has 90 days to act on that. What are your government affairs people saying about the history of the Ministry of Finance accepting these recommendations? I mean, is it a rubber stamp? Do they go along with it 50% of the time? I mean, any color here, because this is really the first time that we're dealing with the situation. So any help there in terms of the probabilities of this being accepted by the Ministry of Finance would be very helpful.

Great question, Frank. And look, it is, you know, considering these went into effect in May, and here we are in August of 2026. We're still kind of working through what those ultimate duties are going to be. They do have 90 days to approve it. I would expect that there's going to be some complaints from the Indian Pain Association on that. I do think that that recommendation is, in fact, I won't call it rubber stamp, but they've got 90 days to approve that, and there'll be some back and forth. around what that is. But I think at this particular stage, we feel pretty confident and we're very engaged in India. I'll be there in two months, not to meet with them, but we, I mean two weeks. So we're spending a lot of time over there. It is a very important market for us. Our margins and our volumes have continued to grow in that area. And we have a very vested interest in trying to make sure that there's fair trade over there. because it's a significant market for us. So it's hard for me to give you a definitive answer, but I'll say I'm a bit more confident that this decision was made and there's a 90-day window and hopefully that answer will come sooner than that.

Well, you mentioned that the Indian Pain Association will lobby the Ministry of Finance to try not to have these duties put on, but I would assume that they have been lobbying pretty hard the Indian Trade Defense Agency. Has that not been the case?

it has so again it's not saying they won't continue to do it i guess you the reason i said that is i don't have a real clear definitive answer on exactly when it's going to happen there's 90 days there and i'm sure they're going to continue to lobby but they to your point they did lobby against it and the trading authorities agreed that they were going to reinstate them and that's just a 90-day period that they've got to continue to evaluate it so okay yeah It's a bit opaque to use a TIO2 word, but hopefully we'll be done prior to 90 days.

Okay, so the way that realistically, if it gets implemented, et cetera, the Chinese are going to be building inventory for the next couple of months over there. It'll take time for the Indian paint companies to work through that inventory. So we're really talking about a benefit in 2027, realistically, potentially.

for I would say maybe for additional volume that's true it's it depends on how much they do between now they export between now and the end of the quarter the numbers that they exported in the month of June were were really high so that's why I'm kind of leaning towards this idea that you know they're building some inventory on there on the assumption that they're going to go down but I'll make the point our volumes in Q1 were higher than they were in Q4. Our volumes in Q2 are higher than they were in Q1. So we're continuing to align with customers over there that are looking for strategic partners knowing that some of these things are going to happen. So our volumes have not gone down. Our volumes Q1 to Q2 have actually increased in India and we don't expect that we're going to lose share over there right now.

Thanks so much, John. Thank you.

Your next question comes from the line of John McNulty with BMO Capital Markets. Please go ahead.

Yeah, thanks for taking my question. And maybe somewhat tied to your last answer. I think, John, earlier, I guess at the beginning of the presentation you spoke to how there were customers that were looking for stability around long-term supply and you were looking to capitalize on that I guess can you speak to the the levers you can pull that they kind of lock in some of that longer-term volume so that it doesn't just become temporary and kind of tied to sulfur pricing and and what's going on in the straight right now yeah I was speaking more specifically to India on that one so

again not knowing what China is going to do and I think this all comes back down to the anti-dumping duties we believe and I think some of our customers believe ultimately they're going to be put in place we see customers shifting towards longer-term commitments and that's helped us secure volume for longer periods of time where typically we'd be negotiating quarterly you know we're getting agreements for longer periods of time because they value us as a supplier having reliable supply and knowing that we're going to be predictable long-term and not in and out of the market. I think the fact of the matter is China moves in and out of the market. We've been in that market. It's the second largest market that we sell into globally, the second largest country we sell into globally. It's strategic for us. And I think you could say that for lots of regions that are impacted by duties. I mean, the fact of the matter is there's duties in Brazil, there's duties in Saudi Arabia, there's duties in Europe. We believe duties in India are going to come back. We're actively working on duties in Australia. We're actively working on duties in the UK. The only other place that TO2 is produced is Canada and Mexico. So you've got a lot of free trade of efforts in place. And I can't tell you where things are in Canada and in Mexico at this stage because I don't produce there.

Got it. Okay. No, that's fair. It makes sense.

And then I guess the only other question I had was, you know, you mentioned early on you know a lot of anti-dumping measures have been taken and the next step in your mind is some anti or at least potential anti-absorption steps i guess can you help us to think about how that process starts and where we might where you might be able to take that or the industry in in various regions might be able to take that over time what i can tell you now is that we're looking at that in areas where duties have already been implemented i can't get into specifics

but anti-absorption basically means companies that continue to absorb the duties and don't move the price accordingly so we're actively involved in looking at those in areas where duties are already in place and at this particular stage I can't provide you any more color on what we're doing but let's just say that there's a significant body of work that's going on around maintaining and optimizing fair trade okay fair enough thanks very much for the caller

Thank you.

Your next question comes from the line of Ed Brucker with Barclays. Please go ahead.

Hey, thanks for the call this morning. My first question, it seems like volumes were pretty strong to start the year. Would you attribute any of that to some pre-buying maybe ahead of potential price increases that customers were expecting or even uncertainty within the market? And do you think that could potentially lead to the stocking to end the year?

That's a great question. I do believe as pricing starts to move up in any cycle whether that's driven by structural supply shifts or demand as pricing starts to move up when pricing is moving down people draw inventories down as it starts to move up there's an assumption that it's going to continue to move up so people do start buying. So there was a little bit of that in the first quarter. What's going to prevent that from happening in the second and third quarter is that I won't speak for the entire industry, but our inventory very quickly got depleted. As we mentioned, we drew down north of $100 million of inventory from Q1 to Q2. I would believe our competitors are in a similar position. So there's not a lot of opportunity for a lot of inventory to be built. And I'll go back to the industry doesn't have the same capability to flex production because there's a million less tons of production out there to respond to that demand so can't say that it won't happen I'd say there's limited capability for a lot of pre-buying going on in the markets that we serve other than what I talked about in India and some of the markets where anti-dumping may be coming back got it thanks and my next one I noticed on the slide deck that you expect current capex levels

to be around 20 or excuse me the next couple years uh capex levels to be around 2026 levels um how should we view that in the context of you know uh any sort of growth capex or you know are we staying close to maintenance and would you view that as kind of an under investment over time over the next couple years yeah as you know we're less than 260 million is our guide for this year and and uh

you know historically been operating at much higher levels just due to a lot of the mining investments that we've done but as we've mentioned previously those are mostly behind us so expect to be at these levels in the next five to eight years i'll say within that bucket we do still have some discretionary and growth capital in there maintenance and safety is usually around 150 to 175 million roughly up and down here and there throughout the years so we do have a significant amount that we would describe as discretionary It does exclude, however, anything related to the rare earth project at this point in time, other than some normal expenses that we're incurring for the DFS and just setting up that business.

Thanks for the time. Sure.

Your next question comes from the line of Peter Osterlin with Truist. Please go ahead.

Hey, good morning. Thanks for taking the questions. So first, just wanted to follow up on the earlier point on how you've been managing operating rates across your TIO2 footprint. Could you approximate how much your average utilization rates changed as a mid year versus where you were at the end of last year? And where are you planning to go in the second half?

So, so we have actually, you know, obviously, first half of the year, we did bring down our operating rates just to unlock more inventory. But As we've seen a big pickup in our sales volumes, we are not constraining any of our assets. The only one that we have more potential would be in Yambu, where we have one line that has the potential to go online later this year.

And actually, we're in the process of rebuilding that line. It's a line that's been down. So remember that facility has five oxidation lines, six oxidation lines, six chlorination lines. So to the extent we need to bring that back up, it'll be ready to be brought back up. But at this particular stage, we're running unconstrained at our TO2 facilities. Other than that.

very helpful thank you and then um just as a follow-up looking into the fourth quarter uh you know understand there's some negative seasonality around tio2 volumes there but just given the dynamics around costs and pricing that you described would you expect your margins in the fourth quarter to be your highest for the year and potentially even meaningfully step up from third quarter thank you and we obviously we haven't got it for q4 but obviously the pricing momentum that we've had will you know uh

will create some tailwinds for us.

Your next question comes from the line of Aaron Rosenthal with JP Morgan. Please go ahead.

Hey, good morning, and thanks for your time. Circling back to the decision to re-ramp the assets, I guess what gives you confidence in there being incremental market demand for Zircon in 2027? Are you seeing any specific call on, let's say, China housing recovery, or are you seeing any indications of the competitors that are maybe idle today not having an ability to re-ramp as well? Just trying to think about balancing the earnings uplift potential against the potential liquidity needs in the working capital front.

Yeah, great question. I'll just make the comment that we need that for the inventory. I mean, right now we will be selling more than we're producing in 2026. and drawing down that inventory. So starting that lineup is going to allow us to continue running at the rates that we need to run at to meet customer demand. So I don't expect at this stage based on what we know there's going to be a significant change in our demand for that product. specifically there's a lot of things going on i mean when you think um about there have been some capacity constraints out there which i think from the individual producers you know in indonesia um largely there's a lot of that production that's not there that's that's not being produced at this particular time that's about 65 to 70 000 tons per year and then i think more importantly in china there's a lot of heavy mineral concentrate that gets converted to natural rutile, monazite, and zircon. And at this particular stage, it's not very economic for them to convert that for two reasons. One, there's not a home for the omenite because volumes in China are down and there's no home for the omenite. And the zircon that they're producing is not a premium grade there. And in China, the ceramics industry is not doing well. Where you're getting the big pull from a demand perspective, and we didn't talk about this on the last call, but China is improving a little bit, but it's more driven towards investment casting, zirconium chemicals, fused zirconia, and refactory applications, not ceramics. And the majority of our sales in China, tronoxes, actually migrate to those other products. Only 16% of our sales in China go to ceramics, and globally that's only 8%. So I hope that answers the question maybe a bit longer than you wanted, but this is to meet current demand, bringing on the west mine, and it's also while we're ramping up East OFS to full capacity, and we would expect that that'll help us support sales into the end of the year and into 2027.

That's great. More detail, I think, is always very much appreciated. And then maybe one more on India. I know there's been a lot of Q&A already. I may have missed this, but does your second half volume metric guide explicitly take into account incremental exports from China flowing into India ahead of the ADBs potentially going into place? Or is there some room for the outlook to evolve based on how actual trade flows may play out?

I'm not, could you repeat it one more time, just make sure I get the answer right?

Yeah, so once again, I guess with respect to your second half volumetric guidance on CIO2, wondering if it takes into account some sort of market share considerations with respect to more Chinese products flowing into India ahead of ADDs potentially going back into place, if not, maybe how the outlook could evolve based on how actual trade flows play out.

It definitely is factored into our third quarter guide. And when I think about the fourth quarter guide, which it's early to kind of get a good read on our order book, we have a 90 days kind of window on our order book, but I would expect that we'll see similar volumes. And as I mentioned, we're not losing share to China right now. You know, the volumes that we're selling into India, it's not to say there won't be any seasonal adjustments there, but I would, so short answer to your question, it is taking it into account. But I can't predict what they're going to do month to month.

That's fair.

Thank you. Thank you.

That concludes our question and answer session. Ladies and gentlemen, this will conclude today's call. Thank you all for joining. You may now disconnect.