Market analysis of titanium dioxide industry for recovery of titanium dioxide demand

How is the titanium dioxide industry market? The overall titanium dioxide market in 2022 was stable and weak, and the price fell sharply. Looking to 2023 titanium dioxide market, Tuo Duo data management Department titanium analyst Qi Yu believes that in the context of the expected improvement of the global economy, the share of the international market of titanium dioxide in China will increase, at the same time by the high price of raw titanium, tight market supply and other influences, titanium dioxide market or better this year.

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.

According to the "2022-2027 China Titanium Dioxide Industry Market Comprehensive analysis and Development trend Research Report" released by Puhua Industrial Research Institute of China Research shows:

Market analysis of titanium dioxide industry

Titanium dioxide, an important inorganic chemical pigment, is mainly composed of 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. There are two ways to make titanium dioxide: sulfuric acid and chloride. 56% of them are chlorination products, more than 70% of this product and produced from the United States such as DuPont titanium dioxide plant, other countries including China's titanium dioxide plant is still mainly sulfuric acid method.

The main application areas of titanium dioxide: coatings, plastics, ink, paper, which coating accounted for 60%, plastic accounted for 20%, paper accounted for 14%, other (including cosmetics, chemical fiber, electronics, ceramics, enamel, welding rod, alloy, glass and other fields) accounted for 6%. Titanium dioxide in the rubber industry as a colorant, and has the role of reinforcing, anti-aging, filling. In white and color rubber products to add titanium dioxide, in sunlight, sun resistance, no cracking, no discoloration, high elongation and acid and alkali resistance. Rubber with titanium dioxide, mainly used in automobile tires and rubber shoes, rubber floor, gloves, sports equipment, generally anatase type. But used in automobile tire production, often add a certain amount of rutile type products, in order to enhance the anti ozone and anti ultraviolet ability.

According to the data, in 2019, the comprehensive output of 41 whole-process titanium dioxide enterprises in China reached 3.18 million tons, an increase of 226,000 tons, an increase of 7.69%. Titanium dioxide industry overall scale for many years in the world's first, production equipment, technology and product quality and other comprehensive productivity level has been significantly improved, products can not only meet domestic demand, but also a large number of exports to the international market, according to customs statistics, in 2019, China's export titanium dioxide nearly 1 million tons, an increase of nearly 10.47% than the previous year.

In 2020, except for February, which was affected by the epidemic and the Spring Festival, the domestic production fell sharply due to insufficient construction, and the output of other months increased. In the first half of 2020, the total production of titanium dioxide was 1,621,900 tons, up 5% year on year. Entering the second half of the year, titanium dioxide industry ushered in the peak season, the domestic titanium dioxide products set off a rising tide. China Nuclear titanium dioxide also raised the price of its products on July 13 and August 7, respectively, raising the export sales price of domestic customers and international customers by 1000 yuan/ton and 160 dollars/ton. The price increases occurred within a month of each other.

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.

The industry pointed out that based on the operation law of titanium dioxide industry and domestic and foreign demand, the price trend of titanium dioxide in 2023 or "M" type. Specifically, this year, prices may rise from January to June, prices fall in the off-season from July to August, prices rise again in the peak season from September to November, and prices show a weak correction trend in December.

Industry insiders believe that this year, titanium dioxide market with the optimization and adjustment of the domestic epidemic prevention and control policy will be a high-speed recovery state, but also will form a strong promotion of the real estate industry.

Another factor affecting the titanium dioxide market is industry capacity. As the price of titanium dioxide rises, the previous loss of titanium dioxide producers may have the possibility of resuming production, superimposed titanium dioxide new capacity gradually released, domestic supply will be guaranteed. But at the same time the recovery of domestic titanium dioxide demand and the expansion of export of foreign titanium white will affect the market price in our country titanium white. From the current point of view, after the Spring Festival titanium dioxide market more open, the continuity of the first quarter of the price rise is better.

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.

In recent years, with the continuous layout of the industry leader Longpython Baili, the domestic has formed a Longpython Baili alliance to become the industry leader, in the nuclear Huayuan Titanium dioxide Co., LTD., capacity ranked in the second pattern in the country, the market speculation, because of recent titanium dioxide upstream mine price is relatively strong, downstream dealers and manufacturers are actively stocking, so the inventory of titanium dioxide enterprises are empty. But in reality, domestic demand has not picked up, and the price rise has been fuelled by stockpiling by downstream firms and traders, who have simply shifted their inventories downstream. In addition, the price of titanium concentrate has increased significantly, the price of titanium dioxide has a certain support. In addition, China's mainstream titanium dioxide products sold to Europe, as a channel supplement, will also be sold to Southeast Asia. However, in recent years, India and other rapidly developing countries demand increase more and more obvious, will continue to stimulate China's titanium dioxide demand.

From the supply side, this year's release of titanium dioxide capacity will make the supply side have a certain guarantee. From the perspective of demand, with the adjustment and optimization of China's epidemic prevention and control policy, the demand for titanium dioxide at home and abroad will be increased. At the same time, the main downstream industry of titanium dioxide is the real estate, automobile industry, from the perspective of the development of these industries, titanium dioxide market stability will be a normal trend.

It is expected that the titanium dioxide market in China will be in a small growth trend from 2022 to 2026, and the consumption will reach 2.92 million tons in 2026.

Market prospect analysis of titanium dioxide industry

The paint industry is the largest user of titanium dioxide, especially rutile titanium dioxide, most of which is consumed by the paint industry. The paint made of titanium dioxide, bright color, high hiding power, coloring power, consumption province, variety, the stability of the medium can play a protective role, and can enhance the mechanical strength and adhesion of the paint film, prevent cracks, prevent ultraviolet light and water through, prolong the life of the paint film.

Titanium dioxide is also widely used in cosmetics. Because titanium dioxide is non-toxic, far superior to lead white, almost all kinds of fragrance with titanium dioxide to replace lead white and zinc white. Fragrance only add 5%-8% titanium dioxide can get permanent white, make spices more slippery, adhesion, absorption and covering power. Titanium dioxide in gouache and cold cream can reduce the feeling of greasy and transparent. Titanium dioxide can also be used in a variety of other spices, sunscreens, saponins, white soaps and toothpastes.

This year titanium dioxide production or continued to increase the trend. According to the secretary general of the Titanium Dioxide Innovation Alliance, the director of the Titanium dioxide branch center Bi Sheng, this year Yunnan, Hunan, Gansu, Guizhou, Liaoning, Hubei, Inner Mongolia and other regions will have new titanium dioxide capacity, is expected to have about 600 thousand tons of new capacity release, is expected this year titanium dioxide overall production will increase.

Industry insiders said that with the strong recovery of the domestic economy in 2023, most titanium dioxide producers or increase the operating rate, while part of the new capacity is also gradually released, I believe that can meet the demand at home and abroad, especially the demand of overseas markets.

From the point of view of demand, Yang Xun said, titanium dioxide mainly downstream including paint, plastic, ink, paper and other industries, with the optimization and adjustment of the epidemic prevention and control policy and the relevant support policy landing, superposition of domestic and foreign terminal demand recovery, paint 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.

In terms of exports, analysts expect titanium dioxide exports to remain stable this year. Industry insiders also generally believe that, with the increase of China's titanium dioxide in the international market share, 2023 export market will continue to maintain a stable and rising trend.

Plastic industry is the second largest user, adding titanium dioxide in plastic, can improve the heat resistance, light resistance, weather resistance of plastic products, the physical and chemical properties of plastic products are improved, enhance the mechanical strength of products, extend the service life.

The paper industry is the third largest user of titanium dioxide, as a paper filler, mainly used in high-grade paper and thin paper. Adding titanium dioxide to the paper can make the paper with good whiteness, good luster, high strength, thin and smooth, printing does not penetrate, light quality. Papermaking titanium dioxide generally uses anatase titanium dioxide without surface treatment, can play the role of fluorescent brightening agent, increase the whiteness of paper. But laminated paper requires the use of surface treated rutile titanium dioxide, in order to meet the requirements of light and heat resistance.