February 28, 2020

Domestic titanium dioxide export situation is optimistic

Since 2016, the domestic titanium dioxide market has experienced rapid growth. In addition to the national supply-side reforms, the continuous elimination of domestic backward production capacity and the increase in demand, the continued increase in export volume is also a major driving force driving the market forward. According to the export data in recent years, the domestic titanium dioxide market has a direct relationship with the overall domestic market, and the export situation is optimistic.

In 2015, the domestic titanium dioxide market suffered a major market decline. The overall market performance was poor, and the volume of exports had shrunk. In 2015, the export volume was 539,400 tons, which was 2.55% less than that in 2014. In 2016, the domestic market for titanium dioxide ushered in a sharp rebound and the overall export volume increased. In 2016, the annual export volume was 720,500 tons, a significant increase of 33.82% compared with 2015.

From 2010 to 2016, the domestic titanium dioxide export volume showed an overall growth trend, with an average annual growth rate of 18.04% over six years. Among them, the growth rate was fast in 2014 and 2016. In addition to the market, we can find that domestic titanium dioxide exports The increase in volume is closely related to the improvement of domestic product quality and the elimination of production capacity at the supply side.

First of all, in the ranking of the top ten domestic titanium dioxide enterprises in 2016, the domestic giant Sichuan Longhao Group ranked first in the export volume of 173,000 tons, accounting for 24.01% of the total export volume; followed by the Henan Lililian Group, The export volume is also above the level of 100,000 tons. The top 10 companies in terms of export volume have relatively high product quality in the domestic titanium dioxide industry. In recent years, domestic titanium dioxide enterprises have continuously researched new technologies and increased their investment in scientific research. Titanium dioxide has been significantly improved in terms of whiteness and hiding power, and has laid a good foundation for going abroad.

Secondly, after experiencing a slump in 2015, foreign titanium dioxide companies have continuously eliminated backward production capacity. Among them, Tenova suspended a production line of the Hamilton Titanium Dioxide factory in the US and a production line in Western Australia in 2015. The company's total titanium dioxide production capacity decreased by 15%; on July 27, Huntsman's titanium dioxide plant in France started the shutdown plan, retaining only post-processing capacity. Before the shutdown, its sulfuric acid titanium dioxide production capacity was 100,000 tons. On August 20, Chemof announced the closure of its titanium dioxide production line in Wilmington, Delaware, and the titanium dioxide production line No. 3 in Tennessee, USA, which reduced the production of 150,000 tons of titanium dioxide.

In 2015, the production capacity of major titanium dioxide enterprises in foreign countries kept shutting down, resulting in overall supply reductions. Domestic titanium dioxide enterprises seized the opportunity to increase their export volume to foreign countries. From the perspective of export countries, China's titanium dioxide exports have mainly flowed to neighboring Southeast Asian countries, as well as the United States in the early phase out of more production capacity.

In addition, domestic companies continue to increase their export volume. They also have other profound intentions; in terms of the monthly domestic average prices and export prices in 2016, domestic enterprises’ export orders do not have any price advantage over domestic orders, while domestic companies still need to increase exports. The main purpose of the volume is to increase the domestic supply of titanium dioxide to a certain extent so as to achieve a better market condition in the domestic market. Enterprises can achieve a small amount of export market share in the domestic market.

In January-February 2017, domestic exports were at a level of 111,500 tons, an increase of 16.69% over the same period of last year, and the overall situation is still showing a growth trend. We expect to continue to deepen reforms in the country as a whole and environmental protection continues to tighten the domestic context. Titanium dioxide mainstream enterprises still regard foreign demand as an important treasure, and the export volume will still show a further increase throughout the year. The market conditions in the future are expected to continue to show a steady upward trend.

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