According to the TiO2 branch of the Chemical Industry Productivity Promotion Centre of China, the 2012 TiO2 output in China was 1.89 million tonnes, a YoY growth of 7.7% compared to about 1.76 million tonnes (after adjustment) in 2011. In detail, rutile TiO2 output was 1.32 million tonnes, accounting for 69.9% of the total output; anatase TiO2 output was 469,000 tonnes, accounting for 24.8% of the total output; non-pigments type output was 99,000 tonnes, accounting for 5.3% of the total output. Of the 59 TiO2 producers in China, Sichuan Lomon Group (Sichuan Lomon) listed No.1 with an output of 180,000 tonnes, the second and the third being Shandong Dongjia Group Co., Ltd. (Shandong Dongjia) and Henan Billions Chemicals Co., Ltd. (Henan Billions). Furthermore, due to price declines, fiercer competition and stricter environmental protection, around 6 to 7 TiO2 factories became idle or were closed in 2012.
As TiO2 is widely used in the coatings, plastic and paper making industries, TiO2 consumption is tightly connected to the whole economic situation, especially the real estate market. The slowdown of China's GDP growth rate and the slightly lowering of TiO2 export volume in 2012 compared to the preceding year caused only a slight YoY increase of 7.7% in 2012 (the output of 2011 was on an adjusted basis). 2012 is the third lowest year in terms of the YoY growth rate of TiO2 output since 2001. Due to the global financial crisis, China's TiO2 output had a growth rate of -21.1% in 2008. In 2013, as China's GDP might experience a YoY increase of 8.2% (better than in 2012) and the TiO2 export volume is expected to increase compared with 2012, we anticipate China's TiO2 output in 2013 to undergo a YoY increase of 10%–15%.
During 2009–2012, it is calculated that around 18% of China's total TiO2 output was exported. The main export destinations were the ASEAN-5 (Indonesia, Malaysia, the Philippines, Thailand and Vietnam), the US, Brazil, India and the Euro Area. The 2013 economic circumstances of the main export destinations actually greatly influence China's TiO2 export volume, and in turn the output. In 2012, the TiO2 export volume to the US, Brazil, India and the ASEAN-5 were 77,000 tonnes, 63,000 tonnes, 58,000 tonnes and 147,000 tonnes, increasing by 15.29%, 34.97%, 11.99% and 19.84%, respectively, compared to that in 2011. According to a world 2013 economic prediction by the World Bank, global economic growth is expected to come in at a relatively weak 2.4 percent in 2013, which is better than for 2012. GDP growth in developing countries is projected to rise to 5.5% in 2013, due to improved financial conditions, a relaxation of monetary policy and stronger high income country growth. GDP growth in high income countries is projected to expand a mediocre 1.3%. Growth should begin firming during 2013. As a result, we anticipate China's TiO2 export volume to increase in 2013.
On the other hand, more than half of China's TiO2 is used in the coatings industry. Furthermore, architectural coatings accounts for 30%–40% of total coatings output in China. Architectural coatings consumption depends on the real estate market. After it entered H2 2012, real estate enterprises showed more initiative to stock up land than in H1 2012, indicating real estate enterprises consider 2013 to have more optimistic prospects than 2012. Low interest rates along with fixed asset investment and resurgence of the whole economy will together raise the YoY growth rate of 2013 social construction starts to 8%. The amount invested in the real estate industry in 2013 is projected to rise by 17.5%. With the gradually improving real estate market, architectural coatings demand will likely increase and push up TiO2 consumption. Logically, we expect 2013 TiO2 output to increase by 10%–15%.
The newsletter above was sourced from TiO2 China Monthly Report issued by CCM in February.
Table contents of TiO2 China Monthly Report 1302:
Editor's notes
Industrial Information
TiO2 import volume drops 38.81% in China in Dec. 2012
Imported & domestic titanium feedstock analysis in Dec. 2012
Price update in Feb. 2013
Company dynamics
China’s 2012 TiO2 output volume stands at 1.89 million tonnes
Henan Billions puts forward stock option incentive plan 15
DuPont expects TiO2 market to bottom out in H1 2013 with a disappointing 2012 financial performance
Upstream
Yueda Mining invests in Vietnam's titanium slag project
Downstream
Dow reported net income for 2012 of USD1.10 billion, a YoY fall of 60.49%
DuPont Performance Coatings renamed Axalta Coating System
TiO2 China Monthly Report, issued by CCM on 25th, is mainly comprised of five columns of news and reports related to TiO2 market, including “Supply & Demand”, “Company Dynamics”, “Upstream”, “Downstream” and “Price Update”. You can find out more business opportunities through the latest and helpful information provided in the report.
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