Titanium dioxide is the most outstanding and comprehensive variety of white pigments. Its whiteness, opacity and brightness are outstanding among many white pigments. Therefore, it is used in coatings, paper, chemical fiber, ink, rubber, cosmetics, food and medicine. The industry has a wide range of applications. So, what is the market for titanium dioxide at home and abroad? Domestic titanium dioxide is weak, but foreign countries have announced price increases.
Recently, China Titanium White market has been in a downturn and has been in a weak downturn. The price of titanium dioxide in early May was 16666.67 yuan / ton. On June 17, the price was 15,800 yuan / ton, down 866.67 yuan / ton, a drop of 5.2. %.
The price of domestic famous brand titanium dioxide continued to fall from the beginning of May, with a drop of 1%-10%. The highest drop was Hunan Chuangda Yuhua Chemical Co., Ltd. In just one month, the price dropped from 14,500 yuan per ton. To 13,000 yuan, the decline was as high as 10.34%.
However, in the time when domestic titanium dioxide prices have fallen frequently, what is the foreign titanium dioxide market? Just in June, international titanium dioxide giant Teno issued a price increase letter, saying that due to the pressure brought by raw material pricing, titanium dioxide was raised by 75 US dollars / ton from July 1, equivalent to 519 yuan per ton.
So, what is the cause of the price gap between titanium dioxide at home and abroad? Domestic titanium dioxide structural overcapacity
China's TiO2 for Paints market has a serious structural overcapacity. In recent years, domestic titanium dioxide production enterprises have continued to expand, resulting in over 1 million tons of titanium dioxide production capacity.
In 2018, China's total production capacity of titanium dioxide was 3.4 million tons, with a total output of 2,953,800 tons. The total output of the top five producers was about 1,403,700 tons, accounting for 47.52% of the total output. Among them, Longyi has an annual output of over 600,000 tons, making it the only domestic company to rank among the top 5 manufacturers in the world. According to statistics, there are only 11 manufacturers of domestic titanium dioxide production of more than 100,000 tons in 2018. Among the 39 large-scale titanium dioxide enterprises in the country that can maintain normal production, 17 of them have low output. At 30,000 tons, the industrial concentration needs to be further improved.
As of January-May 2019, the national Titania production was 1,121,100 tons, and the output in April reached 278,900 tons. With the price falling, the output in May fell. It is expected that the output will continue to decline in June, according to the average operating rate of 80% in June. Estimated, the estimated amount in June is about 260,000 tons.
Domestic and foreign titanium dioxide quality gap is relatively large
In the context of a serious overcapacity, China still needs to import a large amount of high-grade chlorinated titanium dioxide every year. At present, the production technology of chlorinated titanium dioxide in China is developing slowly. The titanium dioxide in the market is mainly produced by the sulfuric acid method, and the quality of the titanium dioxide produced by the sulfuric acid method and the chlorination method is quite different. Compared with the imported titanium chloride white powder, the titanium dioxide produced by the domestic sulfuric acid method is of medium to low grade. Rutile titanium dioxide, especially high-grade and special-purpose rutile products, is in serious shortage. The high-quality titanium dioxide required by some important industries has long been dependent on imports. In addition, domestic titanium dioxide production enterprises mostly copy simple production lines, lack of innovation, and the variety homogenization is serious.
In summary, at present, domestic high-quality titanium dioxide is insufficient, and low-end production capacity is excessively high, resulting in a weak domestic titanium dioxide price.