In 2022, the overall operation of Titanium Dioxide market was stable and weak, and the price dropped sharply. Looking forward to the titanium dioxide market in 2023, under the background of the expected improvement of the global economy, China's titanium dioxide market share in the international market will increase. At the same time, affected by the high price of raw titanium and the tight market supply, the titanium dioxide market may improve this year.
The price trend may be "M" type
Based on the operation rules of titanium dioxide industry and domestic and foreign demand, the price trend of titanium dioxide in 2023 may be "M" type. Specifically, prices may rise this year from January to June, fall in the off-season from July to August, rise again in the peak season from September to November, and decline in December.
This year, the titanium dioxide market will recover rapidly with the optimization and adjustment of domestic epidemic prevention and control policies, and will also form a strong promotion for the real estate industry.
Another factor affecting the titanium dioxide market is the industry capacity. As the price of titanium dioxide rises, the previously loss-making titanium dioxide manufacturers may have the possibility of resuming production. With the gradual release of new titanium dioxide production capacity, domestic supply will be guaranteed. But at the same time, the recovery of domestic demand for titanium dioxide and the expansion of foreign exports will affect the market price of titanium dioxide in China. From the current point of view, the titanium dioxide market has a positive start after the Spring Festival, and the price rise in the first quarter has a good continuity.
From the supply side, the release of new capacity of titanium dioxide this year will ensure the supply side. From the perspective of demand, with the adjustment and optimization of China's epidemic prevention and control policies, the demand for titanium dioxide at home and abroad will increase. At the same time, the main downstream industries of titanium dioxide are the real estate and automobile industries. From the perspective of the development prospects of these industries, the steady improvement of titanium dioxide market will be the normalization trend.
It is estimated that China's titanium dioxide market will be in a small growth trend from 2022 to 2026, and the consumption will reach 2.92 million tons in 2026.
High price due to shortage of raw materials
The raw materials for producing titanium dioxide are mainly titanium concentrate and sulfuric ACID. Among them, as a resource product, the future output of titanium concentrate will be less and less, so the market supply will be in a tense situation for a long time, and the price will remain high.
Industry insiders believe that the price of titanium dioxide will run at a high level in 2023 due to the release of new capacity of titanium dioxide and the relative shortage of titanium resources. The main reason for the price increase of titanium dioxide is that the output of the main source countries of titanium dioxide imports has dropped sharply this year. For example, the import of titanium dioxide in Vietnam has been greatly reduced due to the influence of policies and the war in Ukraine. At the same time, the new production capacity of titanium dioxide is released more, and the supply of imported titanium ore is relatively tight. Under the influence of these two factors, the price of titanium ore will continue to run at a high level this year, thus supporting the rise of titanium dioxide price.
Strong recovery of supply and demand
According to statistics, in 2022, the output of titanium dioxide of 43 full-process enterprises in China's titanium dioxide industry achieved another good result, with the total output of the whole industry reaching 3.914 million tons. Industry insiders pointed out that although the operating rate of China's titanium dioxide industry declined in the second half of last year due to the impact of the epidemic situation and market conditions, the overall output of titanium dioxide still increased due to the release of new titanium dioxide production capacity last year.
The output of titanium dioxide may continue to increase this year. According to Bi Sheng, secretary-general of the Titanium Dioxide Innovation Alliance and director of the Titanium Dioxide Sub-center, there will be new titanium dioxide production capacity in Yunnan, Hunan, Gansu, Guizhou, Liaoning, Hubei, Inner Mongolia and other regions this year. It is expected that about 600000 tons of new production capacity will be released throughout the year. It is expected that the overall output of titanium dioxide will increase this year.
With the strong recovery of the domestic economy in 2023, most titanium dioxide producers may increase their operating rates, and some new capacity will be gradually released, which is believed to meet the needs of domestic and foreign markets, especially overseas markets.
From the perspective of demand, Yang Xun said that the main downstream of titanium dioxide include coatings, plastics, ink, paper and other industries. With the optimization and adjustment of epidemic prevention and control policies and the implementation of relevant support policies, and the recovery of domestic and foreign terminal demand, the coating industry will usher in a retaliatory rebound in 2023. In addition, in the fields of plastics, cosmetics, medicine, new energy, nano and other fields, the demand for titanium dioxide will also be prominent, and the consumption will also grow rapidly.
In terms of exports, it is expected that the export of titanium dioxide will remain stable this year. Industry insiders also generally believe that with the increase of China's titanium dioxide market share in the international market, the export market will continue to maintain a stable and rising trend in 2023.
