Analysis of China's Titanium Dioxide Market in 2020

The price of titanium dioxide in 2020 will be divided into three stages:

The first stage is stable and upward: the price of titanium dioxide has risen steadily from January to February due to rising costs and sharp increases in exports, and the market price has risen by 500 yuan/ton; at the end of March, the global epidemic spread and corporate exports were blocked.

The second stage of panic decline stage: the price fell frequently in April, and the market price has fallen by about 3,000 yuan/ton in June.

The third stage continues to rise: The price of titanium dioxide has continued to rise since July due to the recovery of exports, the recovery of domestic demand and the sharp increase in costs

As of mid-December, the market price has increased by RMB 4000/ton from the mid-year low, an increase of 30%, and RMB 1,000-1500/ton, an increase of 7%, compared with the same period last year

2.

Capacity: According to Tu Duoduo's statistics, China's titanium dioxide production capacity will be 4.

China's titanium dioxide production capacity ranks among the top three regions, Sichuan, Shandong, and Henan, which account for 19%, 16%, and 13% of the total domestic production capacity respectively

Output: According to Tu Duoduo's statistics, China's titanium dioxide output from January to November was 3.

Affected by the epidemic, the production of titanium dioxide enterprises in February and February was affected.

Due to the low prices in the second quarter, the market started to be insufficient, but due to the release of new capacity this year, the overall output has increased;

The new output this year is mainly the release of new production capacity, such as Lomon Baililian, China Nuclear Titanium Dioxide, Shandong Dongjia, Guizhou Shengwei and so on

Chlorination method: 4 chlorination titanium dioxide manufacturers (Lemon Baili, CITIC Titanium, Panzhihua Iron and Steel Vanadium Titanium, Yibin Tianyuan), with a total production capacity of 485,000 tons, accounting for 12% of the total domestic production capacity, of which Lomon Baililian accounts for 74% of the total chlorination production capacity

With the release of the production capacity of the chlorination titanium dioxide project and the resumption of production by Lomon Baili Lianxinli, the output of chlorination titanium dioxide this year has increased significantly.

Import data: From January to October this year, the import volume of titanium dioxide was 139,700 tons, an increase of 3.

In 2020, the top three regions of China's titanium dioxide imports are mainly Taiwan, Mexico, and Australia, accounting for 29%, 20%, and 17% respectively

Export data: At the beginning of the first quarter of the epidemic, some overseas buyers worried about the spread of the epidemic in China and increased their orders

With the spread of the epidemic abroad, measures such as foreign lockdowns, suspension of production and production, have had a significant impact on product transportation and terminal market usage

The annual export volume from January to October has been the same as the same period last year, and it is expected that the export volume this year will increase by more than 200,000 tons
.
Under the control of the epidemic, it is expected that China's titanium dioxide export market will continue to maintain a good momentum and maintain steady growth in 2021
.

From January to October 2020, the top three export countries, India, Brazil, and South Korea, accounted for 11%, 8%, and 6% respectively
.

The top ten exporting countries all have different growth rates:

4.
Analysis of apparent consumption

According to data from Tu Duoduo, China's apparent consumption of titanium dioxide from January to October was 1,978,600 tons, an increase of 3.
8% over the same period last year
.

Five, downstream coating market analysis

The impact of the epidemic is reflected in the large differences in different downstream industries of titanium dioxide
.
During the epidemic, the demand for home improvement and construction coatings and engineering construction coatings was strong, while the performance of automotive paint and other industries continued to be sluggish
.

The first three quarters of the performance of the engineering coatings business of Nippon, Carboline, Bardez, Meitus, Gook Energy, Oriental Yuhong and other companies also achieved growth in the first three quarters.
The substantial increase in the output of engineering and architectural coatings slowed the entire coating industry.
The rate of decline in production
.

According to news reports, at the 2020 China Green Coatings and Painting Exchange Conference on November 11, Liu Jie, acting secretary-general of the China Coatings Industry Association, introduced that the total output of paints in China from January to September 2020 was 17,535,900 tons, compared with 17,798,700 tons in the same period last year.
A year-on-year decrease of 1.
5%; as of the end of September this year, the production volume of most companies has exceeded 10%-18% in the same period last year
.
The rapid warming of the downstream market is basically at the junction of the second and third quarters, which is also the post-stabilization period of China’s epidemic prevention and control.
The market effect is passed to the coating industry.
At the end of September, the overall output and profit of the entire industry basically equaled the same period last year.
The recovery of business income is relatively slow
.
On the whole, the overall production and operation of the industry at the end of 2020 is expected to be the same as the same period last year
.

Six, later market forecast

With the control of the epidemic, domestic and foreign demand for titanium dioxide has also recovered.
The market demand for titanium dioxide will increase in 2021; the supply of raw titanium ore is tight, and the price will continue to remain high.
It is expected that the price of rutile titanium dioxide in China will be in the price range in 2021.
15500-18000 yuan/ton
.