The status of titanium dioxide industry: short - term slightly pressure, waiting for rebound

Titanium dioxide, known as "industrial monosodium glutamate", is considered to be the world's best performance of a kind of white pigment, the main component is titanium dioxide, because of its high refractive index, excellent coverage and color, is widely used in coatings, plastics, ink, rubber and paper and other fields. Among them, coating has been the main source of titanium dioxide consumption demand.

Status of titanium dioxide industry

According to the "2022-2027 China Titanium Dioxide Industry Market Depth Research and Investment Strategy Forecast Report" by Priceprice China Research Institute:

In terms of import and export, statistics released recently by the General Administration of Customs show that in January to September this year, the cumulative import volume of titanium dioxide is about 107,200 tons, down 27.01% year on year; Cumulative exports were about 1,0772,800 tons, up 14.3 percent year on year.

On the import side, affected by the weak domestic demand, imported titanium dioxide price is high, this year our titanium dioxide import volume continues to decline sharply, and the September import volume hit a record low.

In terms of export, the total export of titanium dioxide accounted for 36.43% of the total domestic production in the first three quarters. Among them, March is the highest period of titanium dioxide exports this year, exports in 145,000 tons. But in the third quarter with the economic weakening of Europe and America, the export volume of titanium white powder began to decline.

European titanium dioxide producer Venator has reduced its plant in Urdingen, Germany, to minimum production levels in light of high energy costs in Europe, while its plant in Duisburg is also cutting production, president and CEO Simon Turner said. As a result, titanium dioxide sales in Europe and Asia have fallen sharply, and the company expects third-quarter titanium dioxide sales to decline 25% from the second quarter.

Hartwig Michels, president of the European Petrochemical Association (EPCA), said weak market conditions, low production margins and easing supply chain problems could open up the European chemical market to cheaper imports. Forcing more chemical producers in Europe to cut operating rates. Europe's chemical and fertilizer industries have seen mass shutdowns as soaring energy prices have made it uneconomical to produce some materials. Other market estimates, European titanium dioxide may appear 10% to 20% of the reduction in production.

Europe titanium dioxide production capacity accounts for about 18% of the world, at present, many titanium dioxide enterprises in Europe production reduction, production capacity has been reduced to 20% of the total load, supply is tight. Many chemicals markets are expected to remain weak well into next year as institutions such as the IMF, OECD and the European Commission continue to downgrade their GDP growth forecasts and the economic environment deteriorates faster and deeper than expected.

Europe's energy crisis has also profoundly affected the domestic titanium dioxide industry, however, in the long term, due to the decline in European capacity, the inevitable need for domestic capacity to make up, after the energy crisis, the world will open a new round of construction, then titanium dioxide demand will usher in virtual high

The prospect of titanium dioxide industry

According to the "2022-2027 China Titanium Dioxide Industry Market Depth Research and Investment Strategy Forecast Report" by Priceprice China Research Institute:

Under the influence of good external demand and high cost abroad, the price difference of titanium dioxide at home and abroad gradually expands, and the price advantage of titanium dioxide at home is obvious. At the same time, affected by the energy crisis and market demand decline, recently foreign giants have said that they will shut down titanium dioxide production equipment, which may further benefit China's titanium dioxide export.

In terms of output, the production of titanium dioxide in 2021 is about 3,813,500 tons, with a year-on-year increase of 8.58%. With the overall economic recovery of the construction industry, the production capacity of titanium dioxide by chloride process will be increased, and the output is expected to reach 4.11 million tons in 2022.

The state has introduced the entry conditions for titanium dioxide industry, and clearly stipulated the annual output, production process equipment, production process flow and related technical indicators of newly built titanium dioxide enterprises. In 2021, Longbai Group ranked first with a market share of 24%, followed by China Nuclear Titanium Dioxide, Panzhihua Steel Vanadium Titanium, Jinpu Titanium and Ananda with a market share of 9%, 6%, 4% and 3%, respectively.

In 2022, the price of titanium dioxide in China rose first and then fell. Demand pressure, recent months domestic titanium dioxide prices overall to maintain a low trend. In the first three quarters of 2022, Longbai Group achieved a net profit of 3.173 billion yuan, down 17.17% year-on-year, while China Nuclear Titanium Dioxide and Jinpu Titanium Industry achieved a net profit of 617 million yuan and 23.464 million yuan respectively, down 38.42% and 85.07% year-on-year.

Li Xiaoyu, chairman of titanium dioxide Industry Branch of China Coating Industry Association, said that in the global titanium dioxide market, China as the fastest developing growth pole, to promote the sustainable and healthy development of the global titanium dioxide industry plays a vital role. China has been the world's largest producer of titanium dioxide for 12 consecutive years since 2010.

Liu Jie, acting secretary general of China Paint Industry Association and Secretary General of titanium Dioxide Industry Branch, analyzed the development status and trend of titanium dioxide industry in China. In 2023, the titanium dioxide industry will increase the capacity of 1,055 million tons, and the domestic real estate market growth is slowing down, the demand for brushing will be reduced. However, the international market still has the potential to further explore, so the layout of the later industry is particularly important.

Forum related experts also said, due to the rapid growth of titanium dioxide capacity in recent years, the domestic titanium dioxide price overall shock trend, in order to establish an invincible position in the market competition, must accelerate the layout of stable market.

In this regard, Qian Yi, vice president and secretary general of the China Paper Association, said that in recent years, with the improvement of the quality of titanium dioxide products in China, basically get rid of the dependence on imported titanium dioxide, procurement cost is greatly reduced, so as to make decorative paper and other high-end products more competitive, widely used in the field of furniture, building materials, titanium dioxide enterprises can focus on digging decorative paper field demand.