Section I analysis of China's Titanium Dioxide Market in 2021
In 2021, the price of titanium dioxide showed four stages of rise and fall, and the price was still rising at the end of the year compared with the beginning of the year. The price of rutile titanium dioxide increased by about 3600 yuan / ton, or 22%; The price of anatase titanium dioxide increased by 5100 yuan / ton, or 39%. By the end of 2021, the tax inclusive ex factory price of rutile titanium dioxide in China is 18700-20700 yuan / ton, and the tax inclusive ex factory price of anatase titanium dioxide is 17000-19000 yuan / ton.
In 2021, the domestic and international market demand for titanium dioxide was strong, and the market ushered in "ten consecutive rises" during the year. Among them, the market price of LOMO Billions group was announced to rise ten times, respectively on January 8, February 7, March 10, April 11, May 9, June 8, August 10, September 13, October 12 and December 13. The decline time was in July and November. A letter was sent on December 13 to raise the new market price from January 1, 2022.
Phase I: entering 2021, the titanium dioxide market continues the rising momentum at the end of 2020, and the titanium dioxide price continues to rise, with a large increase, with a cumulative increase of 6000-7000 yuan / ton. From January to may, the market price rose five times, and the main reasons for the price rise were 1.5% The downstream market demand recovers and the market demand increases; 2. The promotion of international titanium dioxide enterprises is good for the steady upward trend of domestic titanium dioxide prices; 3. The price of raw materials continued to rise, driven by the increase of titanium dioxide cost, and the market price continued to rise from January to May.
The second stage: in early June, the market was affected by the shortage of raw materials. On June 8,LOMO Billions group announced that the price of titanium dioxide had increased by 500 yuan / ton since July 1. The titanium dioxide enterprises announced an increase mainly because of more orders and tight inventory. In June, the market stabilized first and then fell. In July, the price continued to decline, and the price decline range was 1700 yuan / ton. The main reasons for the price decline were the weakening of the downstream market demand, the decline of raw material prices, the sharp rise of sea freight prices and the recovery of foreign titanium dioxide enterprises. The quotations of first-line manufacturers in the market were strong, the prices of some second and third-line manufacturers made concessions, and the market price fell from June to July.
The third stage: the price rose steadily from August to October. On August 10, LOMO Billions group sent a letter to increase the international price by 200 US dollars / ton, and then more than 20 enterprises in the market sent a letter to adjust the price, with a range of 800-1500 yuan / ton; The price rise was mainly due to the recovery of market demand and the rise of raw material prices. On September 13,LOMO Billions group sent a letter to raise the price, which was mainly due to the rise of raw materials, but the market was affected by environmental protection and power restriction policies, the market supply and demand decreased, the price rise was mostly unsuccessful, and most enterprises were insured. On October 12, LOMO Billions group sent another letter to adjust the price, and some enterprises continued to follow up, and the market price rose.
The fourth stage: the price continued to decline in November, the market entered the off-season and the price of raw materials fell. Most titanium dioxide enterprises lowered their prices by varying degrees, and the market price weakened steadily. International titanium dioxide enterprises have successively raised the price of titanium dioxide in 2022, and the price rise in the international market is good for the domestic market. LOMO Billions group sent a letter to adjust the price on December 13. Longqi sent a letter to boost market confidence, and the market price stopped falling and stabilized.
In 2021, China's titanium dioxide showed an upward trend as a whole. Due to the rising cost of raw materials and good market demand at home and abroad, the market price remained high. In 2022, with the release of new production capacity in the titanium dioxide market, the raw materials will remain tense, and the titanium dioxide price should continue to remain high.
Section II analysis of China's titanium dioxide production capacity in 2021
2.1 analysis of China's titanium dioxide production capacity in 2021
According to Tu Duoduo's statistics, China's titanium dioxide production capacity will be about 4.37 million tons in 2021, an increase of 9% over last year. Due to the continuous strong market demand, the production capacity of titanium dioxide is growing steadily.
2.2 analysis of China's titanium dioxide output in 2021
According to the statistics of Tu Duoduo, the output of titanium dioxide in China from January to November 2021 was 3.4791 million tons, a year-on-year increase of 312900 tons, an increase of 9.88%. The annual output is expected to be about 3.79 million tons.
The market demand for titanium dioxide is strong, and most manufacturers maintain full production. In July, September and October, the market is affected by environmental protection and film restrictions, the market output decreases slightly, and the output increases in different ranges in other months.
The top three regions in titanium dioxide production from January to November 2021 are Sichuan, Shandong and Anhui, accounting for 23%, 15% and 13% of the total domestic output respectively.
From January to November 2021, the output of titanium dioxide produced by chlorination method was 333100 tons, with a year-on-year increase of 47400 tons, an increase of 17%, accounting for 10% of the total output of titanium dioxide in China. In the fourth quarter, the newly-built capacity of Yibin Tianyuan, Jinhai and CITIC was put into operation, and the output of chlorination method continued to increase.
In 2022, with the release of new capacity and the production of new capacity, it is expected that the output of titanium dioxide will increase by 400000 tons in 2022.
2.3 analysis of capacity under construction of titanium dioxide in China in 2022
According to incomplete data statistics, at present, 20 enterprises in the market are building proposed titanium dioxide projects, with a total capacity of about 3 million tons. In 2022, it is planned to have 2 million tons of new capacity (including sulfuric ACID method, chlorination method and hydrochloric acid method).
Section III Analysis of China's titanium dioxide import and export in 2021
3.1 analysis of China's titanium dioxide imports in 2021
According to customs statistics, the import volume of titanium dioxide from January to November 2021 was 176200 tons, a year-on-year increase of 24400 tons, an increase of 16.08%. It is estimated that the annual import volume will be 190000 tons, the average monthly import volume will be 15800 tons, and the maximum import volume will reach 18700 tons in April. The sharp decline in import volume in October was mainly due to the weak demand in the domestic market and the impact of foreign epidemic diseases.
The top three regions of imports are China, Taiwan, Mexico and Australia, accounting for 32%, 18% and 15% respectively.
3.2 analysis of China's titanium dioxide export volume in 2021
According to customs statistics, the total export volume of titanium dioxide from January to November 2021 was 1178000 tons, with a year-on-year increase of 73900 tons, an increase of 6.70%. It is expected that the annual export volume will be 1.28 million tons and the average monthly export volume will be 107000 tons. The global economy improved, the demand in foreign markets remained strong, and the export market maintained a steady growth trend.
The top three countries in terms of export volume are India, Brazil and South Korea, accounting for 13%, 7% and 7% of the total export volume respectively.
3.3 monthly average import and export price of titanium dioxide in 2021
From January to November 2021, the average monthly import price was 3047.42 US dollars / ton, up from 2845.87 US dollars / ton last year, an increase of 7%. The average monthly export price from January to November was US $2746.62/t, up from US $1927.46/t last year, an increase of 42%.
Section IV. apparent consumption of titanium dioxide in China in 2021
According to the data, the apparent consumption of titanium dioxide in China from January to November 2021 was 247.02, 220.93 year-on-year, an increase of 12%.
Section V forecast and analysis of future market of titanium dioxide in China
In the short term, near the end of the year, the intention of goods preparation in the downstream market will be strengthened, and in the later period, affected by the Winter Olympic events in the northern region, some titanium dioxide manufacturers and downstream enterprises may be affected, and the market supply and demand will be reduced again. However, titanium dioxide dragon enterprises and international giants have raised the price of titanium dioxide since January 1, 2022, which has boosted the market; As well as the current price stability of raw and auxiliary materials, it is expected that the titanium dioxide market will operate stably in the first quarter of next year. The price of rutile titanium dioxide is about 19000-19500 yuan / ton, and the price of anatase titanium dioxide is about 17000-18500 yuan / ton.
In the long run, the market demand for titanium dioxide continues to be strong, and there are many new production capacity in the market. It is expected that the new production capacity will be 500000-700000 tons in 2022. However, titanium ore is in a tightening trend, and the price continues to rise. This year, the price increase of titanium ore is 12% - 20%, and the cost of titanium dioxide is high. Based on this, it is expected that the price of titanium dioxide will remain high and volatile next year.
