Summary of Titanium Dioxide Market in 2023 and Market Forecast in 2024

In 2023, the Chinese titanium dioxide market experienced four stages of "ups and downs, ups and downs". The overall price of titanium dioxide increased by 1600 to 1800 yuan/ton compared to the beginning of the year, with an increase of 11%. As of the time of publication, the factory price of China's rutile titanium dioxide, including taxes, was 15600 to 17300 yuan/ton, while the factory price of sharp titanium dioxide, including taxes, was 14500 to 15000 yuan/ton. The overall titanium dioxide market did not experience significant fluctuations throughout 2023, and the market operation was relatively stable.

1. The market price of titanium dioxide in the first quarter was affected by inventory digestion, increased export orders, and rising costs. From January to February, the price of titanium dioxide remained stable and slightly increased; In late March, due to the rapid increase in prices and some resistance from downstream companies, some companies made concessions at the end of March;

2. The price of titanium dioxide in the second quarter was weak and downward, with low domestic demand and a decline in prices; Since April, the price of titanium dioxide has been continuously declining. As of the end of June, the market price has decreased by around 1300 yuan/ton, and some prices have already lost money. Some enterprises have reduced production since May, and the price has stopped falling by the end of June;

3. In the third quarter, the titanium dioxide market experienced a rebound in demand and rising costs. From July to September, the price of titanium dioxide continued to rise, resulting in three consecutive rounds of price increases in the market; Under high supply and prices, there was pressure on companies to ship in late October, and some companies adjusted their prices;

As of mid November, the market prices were still higher than the same period at the beginning of the year. Due to the decrease in market demand and the decrease in raw material prices, the titanium dioxide market has been adjusted in a weak position since November. Some large factories have offered discounts of 500 to 600 yuan/ton compared to the previous period, while some companies have seen prices decline by around 1500 yuan/ton compared to the previous period; Affected by demand, the operating rate of titanium dioxide will decline, and the market price decline may slow down in the future.

According to statistics, the production of titanium dioxide in China is expected to be 4.2 million tons in 2023, an increase of 300000 tons compared to last year. In 2024, the production capacity of titanium dioxide is expected to increase by nearly 350000 tons.

2024 Titanium Dioxide Market Forecast:

According to national news reports, after a brief pulse like rebound in consumption caused by the economic restart in 2023, it is expected that economic growth in 2024 will approach the "new normal", with GDP continuing to rebound year-on-year and investment growth rate of about 4%. Meanwhile, it is expected that global trade volume will shrink slightly in 2024, but China's export growth may still be slightly higher than global growth. Considering that import growth is still weak, it is expected that the contribution of net exports to growth will remain high, while the contribution of net exports to real GDP may further increase.

1. Since the second half of 2023, multi-level real estate policies have been fully implemented, and the current strength is gradually approaching 2014. The country believes that 2024 may be the year of real estate stabilization;

2. The new production capacity in the Chinese titanium dioxide market is constantly increasing, and it is expected that the domestic titanium dioxide production capacity will reach 6 million tons by 2024, with monthly production exceeding 500000 tons;

3. The international market share will steadily increase, with an estimated export volume of 1.65 million tons in 2023 and 1.8 million tons of titanium dioxide in 2024; Improving the quality of domestic products and enhancing competitiveness;

4. The domestic supply of raw material titanium concentrate is still in a tight situation, and the price continues to be high;

Under the rapid increase in supply in the titanium dioxide market, although terminal demand may increase, compared to the weak growth rate of titanium dioxide supply, the titanium dioxide market will enter a stage of oversupply, and titanium dioxide enterprises will still face significant pressure in 2024.