Titanium dioxide: demand recovery market is good

The overall titanium dioxide market in 2022 was stable and weak, and the price fell sharply. Looking to 2023 titanium dioxide market, Tu Duo Duo data management Department titanium analyst Qi Yu believes that in the context of the expected improvement of the global economy, the share of the international market of titanium dioxide in China will increase, at the same time by the high price of raw titanium, tight market supply and other influences, titanium dioxide market or better this year.

The price trend may be “M” shape

Yan titanium industry analyst Yang Xun pointed out that, based on the operation law of titanium dioxide industry and domestic and foreign demand, the price trend of titanium dioxide in 2023 or “M” type. Specifically, this year, prices may rise from January to June, prices fall in the off-season from July to August, prices rise again in the peak season from September to November, and prices show a weak correction trend in December.

Another factor affecting the titanium dioxide market is industry capacity. As the price of titanium dioxide rises, the previous loss of titanium dioxide producers may have the possibility of resuming production, superimposed titanium dioxide new capacity gradually released, domestic supply will be guaranteed. But at the same time the recovery of domestic titanium dioxide demand and the expansion of export of foreign titanium white will affect the market price in our country titanium white. From the current point of view, after the Spring Festival titanium dioxide market more open, the continuity of the first quarter of the price rise is better.

It is expected that the titanium dioxide market in China will be in a small growth trend from 2022 to 2026, and the consumption will reach 2.92 million tons in 2026.

 Raw material shortage high price

The main raw materials of titanium dioxide production are titanium concentrate and sulfuric acid. Among them, titanium concentrate as a resource product, the future output will be less and less, so the market supply will be in a long-term tense situation, the price will remain high.

Industry insiders believe that in 2023 by the release of titanium dioxide capacity, titanium resources are relatively tight and other multiple impacts, titanium dioxide prices will be high. The main reason for the increase in titanium dioxide price is that the production of the mainstream titanium ore import countries has declined sharply this year, such as Vietnam titanium ore affected by the policy, Ukraine titanium ore affected by the war, resulting in a significant reduction in titanium dioxide imports. At the same time, the new production capacity of titanium dioxide is released more, and the supply of imported titanium ore is tight. Under the influence of these two factors, this year’s titanium ore price will continue to run high, thus supporting the price of titanium dioxide upward.

 Both sides of supply and demand are recovering strongly

According to the statistics of the Secretariat of the Strategic Alliance of Titanium Dioxide Industry Technology Innovation and the Titanium Dioxide Branch of the National Chemical Productivity Promotion Center, 43 enterprises in the whole process of titanium dioxide industry in 2022 have achieved a new record of titanium dioxide production, with a total output of 3.914 million tons in the whole industry.

The industry pointed out that although last year’s titanium dioxide industry affected by the epidemic and the market, the enterprise operating rate in the second half of the decline, but because of the release of titanium dioxide capacity last year, the overall production of titanium dioxide still increased. 

From the point of view of demand, Yang Xun said, titanium dioxide mainly downstream including paint, plastic, ink, paper and other industries, with the optimization and adjustment of the epidemic prevention and control policy and the relevant support policy landing, superposition of domestic and foreign terminal demand recovery, paint industry will usher in a retaliatory rebound in 2023. In addition, in plastic, cosmetics, medicine, new energy, nano and other fields, titanium dioxide demand will also be highlighted, consumption will also be high growth.

Export, Yang Xun expected this year titanium dioxide exports will remain stable. Industry insiders also generally believe that, with the increase of China’s titanium dioxide in the international market share, 2023 export market will continue to maintain a stable and rising trend.