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”.

Extrusion process using TINOX® R-2280 TiO2-plastic grade

TINOX R-2280, a high-performance SP-rutile TiO2 pigment for plastic applications gives outstanding optical
properties and is also optimized due to post-treatment for required use at higher process temperatures.

R-2280 pigment surface

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:

TiO2 market analysis 20191131

First, Market Analysis

It was almost completed in November. It was identified as a weak titanium dioxide market after the Shanghai Coatings Exhibition. The end market has severely reduced prices, and the price market has become increasingly clear. Some manufacturers have adjusted their prices after the meeting. Panzhihua Haifengxin Chemical announced a rise of 200 yuan / ton against the trend, which aroused the attention of many people. The main reason for the increase is the high cost of raw materials and the shortage of spot supply in the market. The force is not strong, and the initial intention is obvious.

35 major global chemical companies third quarter 2019 results

All the data was gathered online

BASF, the world’s largest chemical company, announced its financial results for the third quarter of 2019, with total revenue of 15.23 billion euros (approximately $ 16.9 billion), a decrease of 2% year-on-year, mainly due to lower prices in the materials and chemical sectors. Uncertainty in the market and careful ordering by customers also played a role. Net income was 911 million euros, a year-on-year decrease of 24%. Earnings before interest and taxes (EBIT) excluding special items were 1.1 billion euros, a year-on-year decrease of 24%.

France to ban titanium dioxide whitener in food from 2020

PARIS (Reuters) - France will ban the use of titanium dioxide as a food additive from 2020 after the country’s health and safety agency said there was not enough evidence to guarantee the safety of the substance.

Titanium dioxide is widely used in industry as a whitener, notably for paint, and in the food sector, where it is labeled E171 and goes into products from chocolate to chewing gum.

Your browser is out-of-date!

Update your browser to view this website correctly. Update my browser now