Development trend analysis of titanium dioxide industry in China in 2023

Titanium dioxide is an important inorganic chemical pigment, the main component is titanium dioxide. The production process of titanium dioxide includes sulfuric acid process and chlorination process. In coating, ink, paper, plastic rubber, chemical fiber, ceramics and other industries have important applications. Domestic titanium dioxide enterprises set off a new round of titanium dioxide products tide, including Jinpu titanium industry, Tianyuan Group, Shandong Daen, Citic titanium industry, Chengdu vanadium titanium, Haifeng Xin, Jinzhou titanium industry, Ningbo Xinfu and other more than 20 titanium dioxide enterprises to raise prices, the price range in 300-2000/ ton, this round of price increases have come.

The first leading enterprises appeared on the second day of the New Year, Panzhihua titanium dioxide sea price up 500 yuan/ton, Panzhihua Haifeng Xin titanium dioxide price up 300 yuan/ton, Hunan Chuangda Yutu titanium dioxide price up 400 yuan/ton, then, the major titanium dioxide production enterprises have followed the price adjustment, and this year's Dolun industry concentrated price model, The latest price increase comes as small and medium-sized companies take the lead in the industry's slow season.

According to the research report "China Titanium Dioxide Industry Market Comprehensive Analysis and Development Trend Survey Report 2022-2027" by China Research and Development Institute:

It is reported that titanium dioxide, the scientific name of titanium dioxide, mainly used in coatings, plastics, paper, ink and other fields, coating is its largest application field, accounting for about 58%. According to the Titanium Dioxide Sub-center of the National Chemical Productivity Promotion Center, the total production of rutile and anatase titanium dioxide and other related products in 2022 reached 3.861 million tons, a record high. However, the growth rate was only 1.87%, the lowest in nearly five years. Among them, Longbai Group has the largest production scale, followed by middle-core titanium white.

Overseas titanium dioxide cost pressure, the overall capacity has contracted. Compared with the domestic, overseas titanium dioxide production enterprises of raw materials, energy and power, labor costs are at a higher level, but also facing more stringent environmental regulatory policies. Under this background, the overall production capacity of titanium dioxide overseas has shrunk in recent years. With the continuous fermentation of energy crisis since 2022, a variety of local chemicals in Europe are facing production cuts, and the production capacity of titanium dioxide industry is reduced to 20% of the total load. Since 2022, the domestic titanium dioxide exports continued to maintain a rapid growth, from January to November the cumulative export of 127.91 million tons, an increase of 8.58% year-on-year. From the perspective of regional distribution, Asian countries are the main export destination of domestic titanium dioxide. According to the data of Bacchuan Yinfu, the cumulative domestic titanium dioxide export of 1.31 million tons in 2021, among which India, Brazil, South Korea, Turkey, Vietnam, Indonesia accounted for 13%, 7%, 6%, 6%, 5%, 5%. Overall, Asian countries for domestic titanium dioxide main export destination.

Recently, the government has introduced a number of policies to support the development of new infrastructure. The new infrastructure is expected to drive the traditional infrastructure industry to usher in a new round of prosperity. As the upstream product of the traditional infrastructure supply chain, driven by the new and old infrastructure, titanium dioxide demand is expected to usher in further growth in the future. 2023 domestic economy or continuous improvement, the formation of titanium dioxide market demand support, China is the most stable export countries, with the increase of international market share, export driven by the domestic market will continue to rise; The bears believe that the sluggish domestic real estate industry and cautious macroeconomic expectations in the context of global inflation expectations will make it difficult for global demand to grow significantly in a short time, while the rapid growth of production capacity will increase the trend of oversupply and weak internal and external demand, which will bring negative impact on prices.

Development trend analysis of titanium dioxide industry in China in 2023

Titanium dioxide industry market concentration is high, in addition, the world's major titanium dioxide production enterprises are still through mergers and acquisitions, further improve the market concentration. Benefiting from the guidance of industrial policies, especially under the guidance of the supply-side structural reform in recent years, titanium dioxide industry is accelerating the elimination of the backward enterprise production capacity, has optimized the competition environment within the industry, the return of titanium white price to a reasonable range, and is conducive to enhancing the overall competitiveness of titanium white industry in our country, and there is significant progress in domestic production technology, and the improvement of product quality. Therefore, the proportion of replacing foreign products increases year by year, and so does the proportion of exports.

Every March titanium dioxide industry demand for better, downstream hoarding to take goods is more concentrated, manufacturers price sentiment is higher, once entering April to May with demand light, production enterprises want to increase prices is not easy to implement. At present, titanium dioxide industry profit space is not large, especially anatase titanium dioxide, has been in the state of loss, although the current titanium dioxide market price rose 200-500 yuan/ton, also just back to the break-even line or slightly profitable, large production enterprises profit will be relatively high, but not too high.

The main downstream of titanium dioxide includes coating, plastic, ink, paper and other industries. With the optimization and adjustment of the epidemic prevention and control policy and the landing of relevant support policies, the overlay of the recovery of domestic and foreign terminal demand, the coating industry will usher in a retaliatory rebound in 2023. In addition, in plastic, cosmetics, medicine, new energy, nano and other fields, titanium dioxide demand will also be highlighted, consumption will also be high growth.

With the development of the global economy, the improvement of people's living standards, the development of industrialization and urbanization in the developing countries with a large population, stimulate the growing demand for titanium dioxide products, so the emergence of titanium dioxide enterprise collective price market situation. At present, the global paint, paint demand is growing, colleagues in the domestic real estate industry's huge stock and renovation demand also pulled the paint, especially the growth of demand, become an additional driving force for the growth of titanium dioxide market. In the future, with the improvement of the real estate boom, it is expected to further pull the demand for titanium dioxide, driving the price of titanium dioxide, so there is a collective price increase of titanium dioxide enterprises in the market.

Industry insiders believe that in 2023 by the release of titanium dioxide capacity, titanium resources are relatively tight and other multiple impacts, titanium dioxide prices will be high. In 2023, the overall economic environment trend warming up, superposed real estate policies and other positive, titanium dioxide downstream demand is expected to bottom out, the industry or gradually recovery. Global apparent consumption of titanium dioxide is expected to reach 8.9 million tons in 2025.