In 2023, the total production of titanium dioxide in China reached 4.16 million tons, a year-on-year increase of 6.3%

According to recent statistics from the Secretariat of the Titanium Dioxide Industry Technology Innovation Strategy Alliance, the total production of China's titanium dioxide industry reached a new historical high in 2023, reaching 4.16 million tons, an increase of 250000 tons year-on-year, with a growth rate of 6.3%.

According to Bi Sheng, Secretary General of the Titanium Dioxide Alliance, in 2023, there were a total of 42 full process titanium dioxide production enterprises in the entire titanium dioxide industry in China with normal production conditions (excluding post-processing/post-processing enterprises), as well as a total of 4.28 million tons of rutile type (including sulfuric acid process full process crude products, finished products, and chloride process products), rutile type titanium dioxide, and other related products. After deducting the crude products purchased for surface treatment, the actual production was 4.16 million tons.

In 2023, the production of rutile products was 3.6 million tons, accounting for 86.53% of the total production, an increase of 3.22 percentage points from the previous year; The production of titanium products was 420000 tons, accounting for 10.10% of the total production, a decrease of 2.3 percentage points from the previous year; The production of non pigment grade and other types of products was 140000 tons, accounting for 3.37%, a decrease of 0.9 percentage points from the previous year.

In 2023, the production of chlorinated products was 692000 tons, a significant increase of 195000 tons or 39.33% compared to the previous year. Chlorination products account for 16.63% of the total production of titanium dioxide and 19.22% of the production of rutile type products, both of which have significantly increased compared to the previous year.

In 2023, among the 42 comparable production enterprises, 28 increased their output, accounting for 66.67%; 11 companies decreased, accounting for 26.19%. At the end of 2023, the effective production scale of 42 full process titanium dioxide enterprises in the industry was 5.2 million tons/year, with an average industry capacity utilization rate of 80.0%, a decrease of 3 percentage points from the previous year.

The future and challenges are titanium ore and the market. According to publicly available information, there are multiple new projects that have been completed and put into operation in 2024, or ongoing titanium dioxide production projects that are about to be put into operation. In addition, there are new or expanded sulfuric acid process projects launched under the guise of new energy materials. Even if a portion of the above-mentioned expansion projects can be achieved, the total production capacity of titanium dioxide in China will increase to at least 7.5 million tons in the next 2-3 years, which is more than twice the total production capacity of other countries in the world and accounts for two-thirds of the global total production capacity.

With the gradual production of new production capacity, the annual production of titanium dioxide has been increasing year by year, and the market may present a situation of oversupply. In fact, the new industrial policies introduced earlier have defined the titanium dioxide industry as one of the industries with overcapacity. Therefore, supply side structural reform is particularly realistic for the titanium dioxide industry.

Bi Sheng emphasized that although in recent years, the international market has been one of the pillars of China's titanium dioxide market, with exports accounting for about one-third of production, this is not unlimited. The entire industry must continuously innovate in technology, hone internal skills, and reduce costs and increase efficiency; Continue to make efforts in the product chain, continuously develop high-end products, and promote the high-quality and healthy development of the industry.

Import and export data of titanium dioxide

According to customs data, from January to November 2023, China imported approximately 73300 tons of titanium dioxide, a year-on-year decrease of 40.46%, and the import volume decreased by 49800 tons. The decrease in the import volume of titanium dioxide is mainly due to the weak domestic market, limited demand for titanium dioxide, and high cost pressure on enterprises.

According to customs data, the cumulative export of titanium dioxide from China from January to November 2023 was about 1.4983 million tons, a year-on-year increase of 17.14%, and the export volume increased by about 219200 tons. The steady increase in export share is beneficial for the new production capacity of titanium dioxide. In addition, the withdrawal of titanium dioxide production capacity from the international market is more favorable for domestic titanium dioxide exports. In the future, titanium dioxide exports will continue to steadily increase.

Market analysis of titanium dioxide

Looking at the development of titanium dioxide market in 2023, from a price perspective, according to monitoring of commodity data, the overall market price of titanium dioxide will rise in 2023. At the beginning of the year, the average price of domestic titanium dioxide was 15933.33 yuan/ton, and at the end of the year, the average price was 16483.33 yuan/ton. The price increased within the year, with a magnitude of 3.45%.

Looking at the market development in 2023, the titanium dioxide market shows an M-shaped trend. In the first quarter, titanium dioxide companies had good market confidence and prices increased. In the second quarter, cost support weakened, demand was average, and prices were lowered. In the third quarter, Longqi issued a letter announcing a rise, indicating a positive market and active investment sentiment, resulting in an increase in prices. In the fourth quarter, the domestic terminal market remained sluggish, with market prices falling.

The first quarter is recovering in January. Cost support was good in February, downstream demand improved, and prices rose. In March, on-site inventory was low, while exports were good, and prices continued to rise. The cumulative increase from January to March was 7.43%. As of the end of March, domestic quotations for rutile type titanium dioxide are mostly between 16500 and 18500 yuan/ton; The quotation for rutile titanium dioxide is around 14500-15000 yuan/ton.

In the second quarter, cost support weakened from April to May, demand was average, and prices were lowered. In June, there was a stalemate between upstream and downstream markets, and the market was cautious in trading. Prices remained stable for the time being. The cumulative decline from April to June was 5.74%. As of the end of June, domestic prices for rutile type titanium dioxide are mostly between 15500 and 17200 yuan/ton; The quotation for rutile titanium dioxide is around 13500-14000 yuan/ton.

In the third quarter, manufacturers had more orders on hand, and on-site supply was slightly tight. In August, Longqi issued a letter announcing an increase, and the focus of new transaction prices shifted upwards. The cumulative increase from 7 to 9 is 7.23%. As of the end of September, domestic prices for rutile type titanium dioxide are mostly between 16700 and 18600 yuan/ton; The quotation for rutile titanium dioxide is around 15500 yuan/ton; The quotation for chlorinated titanium dioxide is 19600 yuan/ton.

In the fourth quarter, the domestic terminal market was sluggish, with poor performance in new orders in October. The titanium dioxide market is about to enter the off-season, and traders are more flexible in their transactions, resulting in an increase in low-priced supply in the market. At the end of November, Longbai Group (002601) lowered its new order price by 1000 yuan/ton. Prices continue to decline. The cumulative decline from 10 to 12 is 4.72%. As of the end of December, domestic quotations for rutile type titanium dioxide are mostly between 16000-17600 yuan/ton; The quotation for rutile titanium dioxide is around 14500-15000 yuan/ton.