Titanium industry market analysis for 2020

The first phase of the market is stable and upward trend of the prices: the price of titanium dioxide rose steadily from January to February due to rising costs and a significant increase in exports, and the market price rose by 500 RMB/ton; at the end of March, the global epidemic spread and corporate exports were blocked, at the end of March Individual companies in the market have made concessions;

The second phase of panic decline stage: the price fell frequently in April. In June, the market price has fallen by about 3,000 RMB/ton. The market price has fallen too fast. Some prices have already lost money. Enterprises have reduced production. As market demand has gradually recovered. The price stopped falling at the end of June;

The third phase is the recovery phase: 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 rise 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.

According to TDD CHEM statistics, China's titanium dioxide production capacity will be 4.03 million tons in 2020, accounting for 49% of the global titanium dioxide production capacity, and China's share of the global titanium dioxide market is gradually expanding.

China's titanium dioxide output from January to November was 3.1662 million tons, which was basically the same as the same period last year. The annual output is expected to be around 3.48 million tons;

Affected by the pandemic, the production of titanium dioxide from different corporations was affected in only February. Except for a significant decline in production in February, the output of the remaining months increased by different degrees;

Due to the low prices in the second quarter, the market started to be insufficient and many companies started to bear losses, 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 Billions, CNTD, Shandong Dongjia, and Guizhou Shengwei.

There are 4 chlorination titanium dioxide manufacturers (Lemon Billions, CITIC Titanium, Panzhihua Vanadium Titanium, Yibin Tianyuan), with a total production capacity of 485,000 tons, accounted for 12% of the total domestic production capacity, of which Lomon Billions United accounts for The entire Chlorinated method production process capacity is 74%.

With the release of the production capacity of the chlorination titanium dioxide project and the resumption of production by Lomon Billion, the output of chlorination titanium dioxide this year has increased significantly. The output of chlorination titanium dioxide from January to November was 285,700 tons, compared with the same period last year an increase of 112,100 tons, an increase of 64.54%, accounted for 9% of total domestic output.

Import data:

The import volume of titanium dioxide from January to October this year was 139,700 tons, a year-on-year increase of 3.08%. The annual import volume is expected to be 170,000 tons; the average monthly import volume is 14,000 tons. The import volume in January this year was less than 10,000. It reached 17,900 tons in February at most.

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. In March, the export volume of titanium dioxide also hit a record high.

With the spread of the epidemic abroad, measures such as foreign country closures, suspension of production and production, have had a significant impact on product transportation and terminal market usage. Export volume began to decline in April, and exports in May were also the lowest this year. With the control of the epidemic, the export market has rebounded since June, and prices have begun to rise from the bottom.

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 in 2021 and maintain steady growth.

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 range in 2021. 15500-18000 yuan/ton.