Tio2 Market Analysis before 2021


From January to September of 2020, the comprehensive output of the whole industry reached about 2.4 million tons, and the total output for the year is expected to reach about 3.4 million tons, an increase of 4.0% year-on-year
While the domestic market environment is gradually improving, the export data also maintains a good momentum. From January to August 2020, the cumulative export volume of titanium dioxide was close to 780,000 tons, a significant year-on-year increase of 18.36%. It is expected that the total export volume for the year will exceed 1.2 million tons, setting a new historical record. To be sure, the export to the international market is still a very important factor supporting the prosperity of titanium dioxide in the latter part of this year and in the future.
As the price of titanium ore continues to run at a high level, the current price of titanium ore in Panxi has reached 298 usd/ton (EXW & not VAT), causing the production costs of major domestic titanium dioxide producers to continue to increase, forcing titanium dioxide producers to continuously adjust their Product prices, coupled with the renewed large-scale outbreak of the global new crown virus, has caused overseas shipping prices to continue to skyrocket, which has caused the domestic titanium dioxide CIF prices to continue to rise, further reducing the price gap with international titanium dioxide suppliers. In addition, due to RMB since the second half of this year Continued appreciation, these reasons have had a certain impact on the export of titanium dioxide in early 2021, so we remain cautious about the export situation in early 2021.

2020 Titanium Slag Market Analysis

China Import sistuation

In 2019, the mine in Shapic, Australia ceased production. Australian titanium concentrate rarely flows into China again.
Kenya’s output began to decrease in 2019. Further reduction in 2020.
It can be seen that in recent years, foreign high-quality titanium slag has entered the Chinese market with a decreasing trend year by year. At the same time, Kenya Base Resources expects that for the 21st fiscal year, the output from July to June 2020 will be only 270,000 tons.
It will further reduce the entry of foreign high-quality titanium slag into the Chinese market, especially the high-titanium slag materials suitable for the chloride process will further reduce the entry into the Chinese market.

China tio2 slag imports and tio2 exports analysis in the first half of 2020

  1. According to customs statistics, China imported about 200,000 tons of titanium slag in June, a year-on-year increase of 22.41% and a month-on-month decrease of 37.94%. The top three countries in terms of imports are: Australia, 70,481 tons, Mozambique, 62,141 tons, and Vietnam, 27,301 tons, respectively. At 36%, 32%, 14%.


Summary of tio2 exported by China from Jan.to May. 2020.

From Jan.2020 to May 2020, the China exported 482327 metric tons of titanium dioxide to 128 countries/regions. The largest importer is India, imported 48736MT of tio2 from China. In the end of the rank, it is Trinidad and Tobago, imported 2MT of tio2 from China.
titanium dioxide imported from China Jan.-May 2020 top20.
During the first three months of 2020, in the pandemic of COVID-19 in China, the importers rush to make stock. And you can see that the volume in this period was not jumped down heavily. But when it came to the April and May, with the spreading of COVID-19 globally, the major economy had shut down, and volume was just less than half of its in March and hit the historically low point.
titanium dioxide imported from China Jan. to Mar. 2020
“Now with the reopening of the economy in major economy, we have very good reason to believe that the needs will gradually back to normal.”, as to the expert estimated.
With the historically shrinking of needs in tio2 industry, the price hit a new low in the early of June 2020, and then kept stable for a month. But in the end of this month, the market seems to smell the opportunity for price increases, and some of the daredevils are giving it a try to intrease it.

Analysis of China's titanium dioxide and titanium ore market in April 2020 and market forecast for May

After the outbreak of COVID-19 in China, the entire industry market has undergone strong changes. The domestic construction industry is basically still in the unopened state, which directly and indirectly causes the demand for coatings and titanium dioxide to be greatly reduced, and domestic sales are basically very difficult.
Due to the outbreak of foreign epidemics, basically all countries have adopted measures to close the country to prevent the epidemic from further out of control. Therefore, overseas sales of titanium dioxide are basically at a standstill. As a result, the domestic sales of titanium dioxide in April were not very optimistic, especially the price of titanium dioxide in the first-tier domestic manufacturers fell sharply in April, and the market price was in chaos. At the same time, the latest price is already close to its cost price. Will stay for a long time. But on the other hand, many domestic factories have begun to fully restore their production capacity. It is expected that the actual output of titanium dioxide factories will reach a higher level in May. At the same time, it is expected that the price of titanium dioxide will steadily decrease partly, not as large as in April. Adjust the price by a margin. In addition, due to the gradual control of the domestic epidemic situation, the resumption of production and production in various industries will continue to improve, and the sales of titanium dioxide will gradually rebound.
2020 Chinese TiO2 Price

In 2020, the titanium ore market rose directly from 1400 yuan at the beginning of the year to 1550-1600 yuan. The main reason is that the purchase volume of titanium ore has increased significantly. Due to the very tight purchase of ore, the supply of raw materials for medium ore is very tight, which has pushed up the price of medium ore. Titanium suppliers’ reluctance to sell gradually increased from January 2020 to the end of February to 1550-1600 yuan, and then the willingness of titanium dioxide factories to purchase titanium ore was gradually lowered due to the impact of the epidemic, resulting in the gradual price of titanium ore in Panzhihua region. Down, the 10 mines in the Panzhihua area as of April 27, 2020 have fallen to around 1,350 yuan.
It is expected that the titanium ore market in May will stabilize with the changes in the titanium dioxide market, and prices will not be adjusted significantly, and the balance of supply and demand for titanium ore will be further stabilized. At the same time, imported titanium ore, especially high-grade titanium ore, will maintain the current price. Due to various reasons, imported high-grade titanium ore will not undergo major price changes due to the epidemic situation. The supply of imported titanium ore is relatively comparative tension.
2020 Chinese ilmenite price

COVID-19 Pandemic push the price up again.

“Now the world is under COVID-19 Pandemic. The global stock market collapse dramatically. Not just the medical instruments industry suffers from the supply, but also the titanium dioxide industry suffers.”

24th Feb, the Chemours first announced the price rise in the Asia Pacific region. And then followed by CHTI, the whole industry from China announced the price rise from 50USD~120USD/MT.

The team of PAINTINDIA2020 officially announced the postponement.

On the last day of Feb.2020, the team of paintindia2020 finally announced the postponement which was recognized as the influence of the global rising coronavirus.

The PAINTINDIA series of exhibitions, since their inception in 1993, have been the pioneering and premier coatings exposition for the coatings industry in the Indian sub-continent. PaintIndia has built a place for itself as the pioneer and the only journal in the coating industry not only in India, but in the entire Far East. It has all along championed the cause of the coating industry to the extent that the Indian Industry looks upto the journal for objective presentation of news, independent expression of views and dissemination of information in continuing research in coatings and raw materials, and its allied fields.
“Now the postponement of PAINTINDIA could lead to a more cloudy India market of paint & coatings industry” The experienced market analysits said, “The coronavirus is being controlled in China, and the export of China will soon recover together with their domestic needs, but globally the virus deeply influenced the business activity by which the market sky of raw material for paint & coatings industry, such as titanium dioxide, could be in a longterm cloudy and grey”.

The forecasted wave of price increases of TiO2 is coming in China

The influence of RBM’s Halt production is now able to see. The price increase in this season was successfully forecasted. The RBM situation is the main driven force that does not have a clear future until now. Combined with the pre-Chinese New Year, the orders from overseas now jammed the China TiO2 industry. Under this price increasing trend, some supplier unilaterally cancels the order in “BAD” payment terms as they said, which in another way increasing the tense of the market.
Herewith attach several PRICE INCREASE NOTICE for reference.

China's titanium dioxide market analysis in December 2019 and the market forecast for the beginning of 2020

In the whole year of 2019, China’s titanium dioxide market experienced five stages of ups and downs. At the end of the year, the price has fallen to a certain extent compared with the beginning of the year. At present, the price of Chinese rutile titanium dioxide FOB price is 1950.00 usd/ton—2200 usd/ton, anatase titanium dioxide FOB is from 1700 usd/ton to 1800 usd/ton. Among them, the market price of Lonmong Billions announced a total of 4 times price increase, respectively on February 12, March 7, August 15, and September 3. The declines were in January, July, and November.
China market TiO2 price trend in 2019 (Jan. to Nov., FOB CN port)
After entering December, due to the suspension of operation of Richards Bay in South Africa, the situation of raw materials is further strained. At the same time, due to the increasing cost of titanium raw materials manufacturers in China, titanium dioxide manufacturers have to consider whether to conduct price increases or halt for maintenance. At present, Most manufacturers have chosen the former and announced price increases ranging from 30-50 usd/ton to offset the cost pressure brought by the continuous price increase of titanium raw materials.
Chinese tio2 import and export from 2008-2019
In January 2020, due to the traditional Chinese New Year holiday, China’s titanium dioxide market is expected to maintain the current price increase trend. At the same time, the titanium dioxide supply may be in short and tight in general. It is expected that large-scale price increases will occur in February. At the same time, due to the influence of titanium raw materials, the production cost of chlorinated titanium dioxide will be greatly increased, and the supply of high-quality titanium ore and high slag will continue to be tight.

Roland Wong, Market Researcher
Dusseldorf, Germany

South African riot will influence the global TiO2 market

Rio Tinto announced on December 4 that Rio Tinto Group announced that it had suspended its mining operations and expansion projects at Richards Bay Minerals in South Africa due to escalating violence in surrounding communities. Suspended. This event will directly affect the global titanium raw material market, especially the future trend of the high slag raw material market of chlorinated titanium dioxide. At the same time, the production of titanium slag by the Norwegian titanium slag production plant is not very smooth, so the future titanium slag market is very severe and tight. The price of raw materials for chlorinated titanium dioxide will remain high in the future, and the production cost of chlorinated titanium dioxide will continue to increase. After China’s titanium dioxide market entered the traditional off-season, two divergences occurred. Some manufacturers carried out price increases due to the cost of raw materials, while other manufacturers threw out goods in order to clean up some inventory. However, under the pressure of high-priced raw materials, most of China’s titanium dioxide manufacturers are not willing to conduct price reductions but instead enter the state of parking and maintenance. At the same time, most titanium dioxide manufacturers’ products are relatively tight, and titanium dioxide products are out of stock in the market. The situation is still very grim, so in the traditional off-season, some manufacturers announced price increases, of which two chlorinated titanium dioxide manufacturers announced a price increase of 80-100usd, and another sulfated titanium dioxide manufacturer announced a price increase of 50usd.

Future market judgment:

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