China Market analysis of Titanium Dioxide in the first quarter of 2021

In 2021, the market price of China's titanium ore continued to rise. Taking 46 Panzhihua ore as an example, the price increased from 1950 CNY / Ton at the beginning of the year to 2180 CNY / Ton, and 47,20 ores from 2000 CNY / Ton at the beginning of the year to 2160 CNY / ton now, with a cumulative price increase of 160-230 CNY / Ton. The main reasons for the price rise are as follows: first, due to the exhaust emission problem in Fengyuan, insufficient construction in Gaoliangping area, and the impact of Panzhihua Steel Group Co., Ltd. recycling titanium ore, the overall supply of titanium ore is tight; second, during the Chinese new year holiday, some manufacturers overhaul, the supply of titanium ore is reduced; third, affected by the two national sessions and the Yunnan biodiversity conference, the construction in Shandong, Hebei and Yunnan is low; third, the market price of titanium dioxide continues to rise, and these manufacturers are in full production with  low inventory.

The total output of titanium dioxide in China from January to February 2021 was 598000 tons, up 24% from January to February last year, and the demand for titanium ore increased. At present, the supply of titanium dioxide manufacturers is tight, and the price of titanium dioxide is expected to rise again. The price increase of titanium ore is less than that of titanium dioxide, and the later price of titanium ore will continue to rise.

 In 2021, the price of titanium dioxide continues to rise, and the range is relatively large. Since the beginning of the year, titanium dioxide has ushered in three rounds of price rising tide, with a single range of 800-1500 CNY / ton. Among them, the price of rutile titanium dioxide has increased from 16000 CNY / ton at the beginning of the year to 18600 CNY / ton at present, with a cumulative price increase of about 2600 CNY / ton. The main reasons for the price rising are as follows: First,with the improvement of the epidemic situation abroad, the market demand is improving, the export orders are still soaring, the domestic demand keeps growing steadily, and the manufacturers' inventory is tight; Second, during the Chinese new year holiday, some enterprises were overhauled, the output declined, and the supply of titanium dioxide decreased; third, the prices of main raw materials such as titanium ore and sulfuric acid continued to rise, and the cost of titanium dioxide enterprises continued to rise; fourth, the strong economic stimulus of the United States had a greater impact on the market price. At present, titanium dioxide manufacturers still have a large number of orders in hand, most of which have been arranged from April to May, and the manufacturers' inventory is still tight; the global market demand for titanium dioxide is increasing, and the market price of titanium dioxide will continue to maintain a high level in the near future.

Import and export data: in January 2021, China imported 278500 tons of titanium ore, a year-on-year decrease of 7.26% and a month on month decrease of 7.32%. In February, China imported 352600 tons of titanium ore, with a year-on-year growth of 41.45% and a month on month growth of 26.58%; from January to February, China imported 6311000 tons of titanium ore, with a year-on-year growth of 14.83%, with a year-on-year growth of 81500 tons from January to February 2020.

Among them, the top three countries of titanium ore import volume from January to February are Mozambique, Vietnam and South Africa, accounting for 34%, 19% and 9% of the total import volume respectively.

In January 2021, China's titanium dioxide export was about 106700 tons, a year-on-year increase of 3.67% and a month on month increase of 4.55%; in February, China's titanium dioxide export was about 94400 tons, a year-on-year increase of 32.58% and a month on month decrease of 11.49%; from January to February, China's cumulative export was about 201100 tons, a year-on-year increase of 15.50%, and a year-on-year increase of 27000 tons.

Among them, the top three countries of titanium white export volume are India, Brazil and South Korea, accounting for 13%, 9% and 7% of the total export volume respectively.

With the improvement of the global epidemic situation, the demand for titanium dioxide is rising, and the demand for titanium dioxide will continue to be optimistic. The domestic price of titanium dioxide continues to be high, and some domestic export prices of titanium dioxide will also be under pressure.