Since this year, the export data of Titanium Dioxide in China has remained bright. In January and February, the cumulative export increased by 17.61% year on year, of which the export volume in February reached a new high, rising on the same and month on month basis.
This year, the domestic titanium dioxide continued to focus on the pace of increase. The increase frequency is almost monthly, and the cumulative increase of ex factory price is 3000 yuan/ton. Up to now, the average price of domestic rutile titanium dioxide in March was 15757 yuan/ton, up 4.87% month on month, but still down 20.42% year on year.
The cumulative export of titanium dioxide in January and February increased by 17.61% year-on-year
According to customs data, the cumulative export volume of titanium dioxide in China from January to February 2023 is 285800 tons, an increase of 17.61% over the same period last year. The cumulative import volume is 8400 tons, a 65% decrease compared to the same period last year. Among them, the export volume of titanium dioxide in February hit a new high, with a month on month increase of 17.19%. In February 2023, China's imports of titanium dioxide will be 4800 tons, an increase of 32.39% month on month and a decrease of 60% year on year. The average import price in February was $3578.25 per ton, a decrease of 8.32% compared to the previous month. In February 2023, the export volume of titanium dioxide in China will be 154200 tons, an increase of 17.19% month on month and 51.92% year on year.
Highly competitive export prices
There are two reasons for the good performance of titanium dioxide export data. One is the recovery of overseas demand, and the other is the advantage of titanium dioxide export price in China. Although the domestic market has undergone several rounds of adjustment, the current price of titanium dioxide still has an export advantage. According to customs data, the average export price of titanium dioxide in February 2023 is 2120.02 US dollars/ton, while the average export price in February 2022 is 3006.85 US dollars/ton. This year's relatively low price gives China titanium dioxide a competitive advantage in the international market.
Year-on-year decrease in supply from January to February
From January to February 2023, China's cumulative output of titanium dioxide was 609600 tons, a decline of 71100 tons compared with January to February 2022. The decline of titanium dioxide output was mainly due to the decline of the industry's operating rate. From the trend of the industry's operating rate in the past three years, this year's operating rate of titanium dioxide industry was significantly lower than that in 2022 and 2021.
Last year, under the downturn of the real estate industry, the demand of coatings and other industries was poor. In addition, under the influence of the epidemic, titanium dioxide could not compare with previous years in terms of price and demand. At the beginning of 2023, the market demand is still tepid, but under several rounds of joint price adjustment by Dragon Enterprises, the market price gradually rises.
The price of titanium dioxide is firm, and the cost has a certain supporting role. The prices of raw titanium concentrate and sulfuric ACID continue to rise, and currently the factory price of 46 grade 10 ore in Panzhihua area has increased to 2200-2230 yuan/ton. The tight supply of titanium ore resources has led to a clear reluctance among miners to sell, with prices stabilizing and rising.
Although the raw material sulfuric acid exhibits local differences in operation due to different regional conditions, the overall price still shows an upward trend. During the period from March to May, major acid plants in Hubei, Anhui and Jiangxi all had maintenance plans, and there was an expectation of supply reduction. The rising price of titanium dioxide also led to an increase in purchasing enthusiasm, and the acid price of several major acid plants rose together. From the current market situation, it can be seen that prices have risen in many parts of China, and local trading has rebounded. However, due to the significant drop in sulfur prices, there is limited room for exploring the low level of sulfuric acid prices, and it is expected that the local increase will be between 30-50 yuan/ton.
In China, titanium dioxide is used in coatings, plastics, paper making, rubber, cosmetics, chemical fibers, textiles and other fields. The demand for titanium dioxide is also expected to increase this year against the background of rising costs and gradually warming demand, and the operating rate of coatings is expected to bottom out.
In recent years, China's titanium dioxide imports have gradually decreased and exports have gradually increased. At present, China's titanium dioxide production capacity has accounted for more than half of the global production capacity. Under such high production capacity, if the production enterprises want to maintain good profits, maintaining a high export share in the future is still the theme.
