Global titanium dioxide supply and demand cost dual pressure lower prices

Titanium dioxide is considered to be the best white pigment in the world. It is widely used in the coatings industry, especially rutile titanium dioxide, and most of it is consumed by the coating industry. In recent years, due to the rapid development of China's economy, the paint industry is also gradually expanding, which has brought a significant market for titanium dioxide. According to the HC editor Xiaobian: In 2009, the total output of titanium dioxide in the country reached 1,046,600 tons, a record high, a net increase of 259,400 tons over the previous year, an increase of 32.9%. In 2009, the rutile type was 552,500 tons, accounting for 52.8% of the total output of titanium dioxide, an increase of 194,000 tons over the previous year, an increase of 54.1%; Anatase-type products were 459,800 tons, accounting for a total output of titanium dioxide 43.9 %, an increase of 70,131 tons over the previous year, an increase of 18.0%; 34,273 tons of non-pigment products, accounting for a total of 3.3%. Since 2010, the domestic economic environment has been improving steadily, and titanium dioxide production and sales have been very stable. According to industry estimates, according to the industry average operating rate (capacity utilization rate) of 70% in 2009, the national production of titanium dioxide in 2010 may reach 1.2 million to 1.4 million tons will be realized by 2015. The total annual output of titanium dioxide in China will be 1.6 million to 1.9 million tons.

Many titanium dioxide manufacturers raised prices in the first half of this year It is understood that many titanium dioxide manufacturers have announced price increases in the first half of this year, such as Connors, Teno, DuPont, and Koster, and DuPont Titanium Technologies It is also the second time since June that the price has been raised.

DuPont Titanium Technologies announced that it will increase Ti-Pure in Europe Middle East and Africa starting on July 1st. The price of titanium dioxide products is as follows: The price increases in Central and Western Europe and North Africa are 150 Euros/ton, and the price increase in Eastern Europe, the Middle East and Sub-Saharan Africa is 150 US$/ton. The price increase was a further increase in product sales prices after the price increase announced on June 1, 2010.

Koster Global announced the news in June 2010, effective from July 1, 2010, or as allowed by the contract, all of its Anatase and rutile Tiona sold in Latin America and Koster's other titanium dioxide products began to increase prices, prices The rate is increased by US$200 per metric ton.

Kronos Worldwide, Inc. announced that in 2010 it raised the price of all its titanium dioxide products sold in Western Europe, Eastern Europe and Turkey. Valid from July 1, 2010, or according to the contract, all Kronos in Western Europe, Eastern Europe and Turkey? Titanium dioxide prices rise 150 euros per metric ton.

Titanium dioxide price rise due to the global supply of titanium dioxide, demand continues to increase, the world's leading titanium dioxide manufacturers recently increased product prices. Kronos, headquartered in the United States, announced that the price of titanium dioxide in Asia, Latin America, and Africa will increase by US$200/ton from August 1. The price increase is due to the rapid increase in the demand for titanium dioxide in the above areas, and the cost of raw materials. The increase in transportation costs and the increase in transportation costs have also brought enormous cost pressures to titanium dioxide production companies. In order to absorb this cost pressure, titanium dioxide companies have passed this pressure on to paint manufacturers. DuPont and Tenova also announced that the price of titanium dioxide products sold in the above areas has increased by 150-175 US dollars / ton. In addition, the above three companies and Huntsman also announced that since June 1, the price of titanium dioxide products in North America rose 8 cents / pound.

The effect of titanium dioxide price increase on the paint market As we all know, the market demand for titanium dioxide is the largest in the architectural coatings market. According to a paint manufacturer in the US, the increase in exports to Asia has further aggravated the tight supply of titanium dioxide in the US market. American paint manufacturer Sherwin-Williams pointed out that due to the shortage of upstream pigments and resin raw materials, US paint prices are facing increasing pressure. In a report released in June, the American Association for Transportation Safety Services pointed out that there is a serious shortage of titanium dioxide and other raw materials for the production of road coatings, including epoxy and thermoplastic road marking paints. In early July, the price of titanium dioxide in North America was 1.22 to 1.39 USdollars/pound, which was 5 cents/pound higher than that in June; the price of titanium dioxide in Asia was 2550 to 2700 U.S. dollars/ton (cost and freight).

Titanium Dioxide Market Future Development Forecast According to HC Network Xiaobian, the December 2009 report of the European Commission stated that global consumption of titanium dioxide decreased by 5% from 2007 to 2008, and decreased by 15% in the first half of 2009. The U.S. Geological Survey said in its report in January this year that due to the substantial reduction in demand in the construction and automotive industries, global titanium dioxide pigment production decreased significantly in 2009. The US titanium dioxide pigment production in 2009 was about 1.04 million tons, which was 15% lower than the 12.2 million tons in 2008. According to statistics, in 2009, the production capacity of titanium dioxide pigments in the United States was about 1.34 million tons.

In fact, the main reason for the decline in global production of titanium dioxide pigments in 2009 was that several sets of titanium dioxide pigment plants were closed or temporarily idled. For example, the 110,000-ton/year plant in Savannah, Georgia, USA, was idled and closed at a 50,000-ton/year plant in Baltimore, Maryland. Teno, the world’s third largest titanium dioxide producer, filed for bankruptcy protection and also affected the market. According to U.S. investment company Jefferies & Co, Teno Company accounts for 11% of the world's titanium dioxide production capacity. At present, DuPont is still the world's largest producer of titanium dioxide, accounting for about 21% of global production capacity. Cristal, based in Saudi Arabia, accounts for 13% of global production capacity. Huntsman and Kronos each have 10% of global production capacity. %. In the first quarter of 2009, Huntsman closed its 40-thousand-ton/year plant in Grimsby, UK, and Cristal also shut down Stallingborough's 150,000-tonne/year plant for two months starting in March 2009.

It is reported that the global demand for titanium dioxide will increase by 8% to 10% this year to reach 5 million tons, which will return to the level of demand before the economic downturn. Among them, China has now become a net importer of titanium dioxide, and it is expected that the demand in 2010 will reach 1.35 million to 1.61 million tons.

It can be seen from the above text that the price increase of titanium dioxide is unusual for the entire industry. Looking at the price increase of N times from DuPont Titanium Technologies, apart from the overall global economic recovery and following the rules of seasonal titanium dioxide production In addition, there is special strength in mastering the global titanium dioxide market. Judging from the negative side, DuPont can successfully implement the price increase several times in a row, which also shows that the titanium white market has recovered to a large extent. The timing of the overall warming of the global titanium dioxide market has matured, and the next round of comprehensive lifting The price boom will also continue for a long time.