2023 first quarter of China titanium dioxide market report

In the first quarter of 2023, the titanium market is basically stable, the supply of titanium raw materials in the market is still tense, the price continues the rising trend at the end of 2022, the price at the cost end is high and rising, the cost pressure of titanium downstream products is large, and the market price is mostly on the edge of loss. As a result of the end of the year some titanium dioxide enterprises have losses, by the cost of prices and market inventory consumption, the first quarter price ushered in two waves of continuous growth.

1.Market price analysis

In the first quarter of 2023, the market price of titanium ore in China showed a continuous rising trend. Taking the price of titanium ore in small and medium-sized factories as an example, by the end of March, the market price of small and medium-sized titanium ore increased by more than 150 yuan/ton compared with the beginning of the year; after the cancellation of the preferential policy of Panxi Dachang, the price increased by more than 100 yuan/ton compared with the beginning of the year. 

The price of imported titanium ore is under great cost pressure in the downstream market, coupled with the adjustment of exchange rate price, the FOB price of Kenmel in Mozambique has decreased to about 30 USD/ton compared with the beginning of the year, but the actual price drop is not much in RMB price.

2. Import and export data analysis

According to customs data, from January to February in 2023, the cumulative import of 673,200 tons (including medium ore wool ore), a year-on-year growth of 2.1%, the import increased by about 13,900 tons. The total amount of imported ore is expected to be 950,000 tons in the first quarter.

The top three regions in 2023 titanium dioxide production in January and February were Sichuan, Shandong and Henan, accounting for 21%, 17% and 16% of the total production, respectively.In the area of titanium dioxide production in January and February, the largest decline was in Sichuan, the production was reduced in 32,300 tons, followed by Guangxi, the production was reduced in 20,900 tons; Shandong, Henan and other regions saw a small increase in output, but the majority of regions still saw a decline in output.

According to statistics, in January and February, China’s production of titanium dioxide chloride process in 94,700 tons, the same period last year increased by 5.86%, the production increased by about 0.52 million tons; The enterprise with the largest increase in output is Longbai Group. As Citic titanium industry resumes full production in April, the capacity of Longbai Group continues to be released. In addition, Panzhihua Steel is expected to put into production of 60000 chlorinated titanium dioxide by the end of the year, the production of titanium dioxide by chlorinated process will continue to increase.

3. Import and export data analysis

From January to February in 2023, the cumulative import of titanium dioxide in China was about 8475.80 tons, 64.60% less than last year, and the import volume was about 15,465.29 tons less. Imported titanium dioxide continued to reduce the main reason for the continuous improvement of domestic titanium dioxide quality, imported high-end titanium dioxide decrease; And the price of imported titanium dioxide is high, the cost pressure of enterprises is larger, and the amount of imported titanium dioxide continues to decrease.

4. Apparent consumption

According to Tuduo’s data, the total apparent consumption of titanium dioxide in January and February 2023 was 331,000 tons, down 28% compared with the same period last year.

5. After-market analysis

Global economic pressure, the recovery of market demand is still weak, titanium dioxide domestic sales are expected to be poor, enterprise export sales pressure is larger, in the market new capacity continues to release, the market oversupply is more obvious, is expected to be weak in the second quarter titanium dioxide market or downward, with the third quarter market demand or a rebound, the third quarter price or will be able to rebound.

（Articles are from the Internet）