In
2010, China became the largest TiO2 producer in the world. Since then, the
country is decisively influencing the world market of TiO2. China’s import and
exports for this raw material used mainly in the coatings, plastic, papermaking, and pharmaceutical industry, is affecting all parts of the world.
Source: Pexels
Exports
China’s export volume of TiO2 did not even meet 100 million kg in 2008, combining the
specifications of anatase, rutile, and non-pigment TiO2. In the year 2016, the
export volume already surpassed 750 million kg. The year 2015 and especially
the year 2012 showed some drops in the export volume, which was overall
increasing immensely in average.
Looking
at the export price, the value underwent some significant fluctuations
throughout the years. The lowest export price in the last 10 years of China’s
TiO2 has been USD1.57 per kg in average. However, even double this price was
witnessed in some years throughout the period.
The
USA, as well as South Korea, have always been loyal export destinations for
Chinese TiO2, remaining under the top 5 consumers in the whole last decade.
However, the analysis from Tranalysis shows, that China’s TiO2 export
destinations have been switching from established, developed countries to
emerging markets throughout the years.
The
trend for anatase, rutile, and non-pigment TiO2 has developed differently in
the past years, with rutile TiO2 becoming much more important for China’s
exports than the other specifications.
From
2008 to 2010, Henan Billion Chemicals has been the leading exporting enterprise
for TiO2 in China. After 2010, the company was surpassed by Sichuan Lomon
Group. Today, the two enterprises are merged together into Lomon Billions and
represent by far the largest TiO2 enterprise in China and one of the biggest
player in the global market.
Imports
Overall,
China’s imports have witnessed a declining trend in the period from 2008 to
2016. The country already became a net exporter of TiO2 in 2010, when the
export volume surpassed the import volume. The import volume fluctuated several
times, falling under 200 million kg in 2012, was able to recover and dropped
again in the year 2016.
The
import price was decreasing in average as well, even some peaks can be found
throughout the last 10 years. In general, China’s import price for TiO2 was
several times higher than the export price in most of the past years. Even
two-digit numbers for the USD price per kg were no rarity in China’s import.
Taiwan,
Australia, and the USA have been traditionally in the first ranks of China’s
TiO2 suppliers in the last decade. However, as China’s import volume went down
continuously, the list of import origins also got smaller during the last
years. China imported the needed TiO2 from fewer countries every year,
depending mostly on the key suppliers.
The
main importers from 2008 to 2012 in China have been companies like the Zhejiang
Harmony Investment Group and Shanghai Sanchang Import and Export. In more
recent years, new players have climbed the top of the importers for TiO2 in
China, like the Chemours Chemical (Shanghai) or Zhejiang Kingdecor.
Analysis of the trend
China’s titanium dioxide (TiO2) industry was growing rapidly in the past decade.
Reaching the status as a largest TiO2 producer in 2009, the capacity was able
to rise by 14.52% average on CAGR in the years 2009 to 2013. In 2010, the
country has become already a net exporter of TiO2, with the export volume
increasing by 11.13% from 2010 to 2013. China is also one of the main consumers
of TiO2 worldwide, witnessing a growing rate of consumption from 2009 to 2013
by 9.36%. The material is mainly used in the coatings, plastic and papermaking
industry in China.
From
2013 ongoing, China enlarged its export volume with huge efforts. The major
driver was the demand from export destinations with high potential such as
Brazil and India. In 2013, the volume of China's titanium dioxide exported to
both countries accounted for 19.53% of the total export volume. As the members
of the BRICs, the development prospects of Brazil and India were optimistic and
they both needed to invest a lot in infrastructure, thus had a large demand for titanium dioxide.
During
the past years, China had shifted its main titanium dioxide export destinations
from European and North American to the emerging markets in Asia Pacific,
Middle East and South America.
in
the end of 2014, the export market has become the development key for the
domestic TiO2 industry. In 2014, the export volume of TiO2 from China hit an
ever since the peak, increasing by 35.36% year-on-year. It is worth noting that
the exports of TiO2 to the Middle East and Europe had the fastest growth rates.
In
2016, China imported and exported TiO2, up by 12.30% YoY and 33.82% YoY
respectively. According to this, China consumed 2.08 million tonnes TiO2 and
the market value of the TiO2 industry rebounded to USD3.39 billion.
China’s
TiO2 exports were booming in 2016. The continuously depreciating RMB and the
increasing export scales of China’s manufacturers have strengthened
this development throughout the year. As a fact, many of China’s producers
exported their products with a lower price while achieving higher profit
margins in the domestic market of TiO2.
The
year 2016 had seen an explosive growth in China's TiO2 export business. It is
not a surprise that domestic inventory will easily be eased by export
volume accounting for nearly one-third of production, and then the prices can
be pushed up continuously.
The
overseas demand for Chinese TiO2 rose up by about 17% in 2016, which enabled an
export increase of the manufacturers in China. As a fact, Chinese TiO2 is
highly demanded in overseas markets, due to the comparatively small price of
the suppliers. The export of TiO2 is responsible for about one-third of the
total output in China.
About Tranalysis
Tranalysis is
an intelligence and analysis provider on import & export data covering over
15 industries in China. Gathering and analysing trade data since 2001,
For
more information about Tranalysis, please visit the website or get in touch with the team directly
by emailing econtact@tranalysis.com or calling +86-20-37616606.