Thursday, February 27, 2014

Export growth to be the driving factor for China's TiO2 consumption in 2014


Looking ahead, the domestic TiO2 consumption will continue to keep soft in 2014, which means that the export growth will be the main driving factor for 2014 China TiO2 consumption. Afterall, the export volume kept flat in 2013 and is expected to increase significantly in 2014. The International Monetary Fund predicts that the 2014 global GDP growth will reach 3.6%, higher than the 2.9% growth rate in 2013.

The steady and consolidated recovery of export destinations also supports the expectation that exports will drive growth for the consumption of Chinese-produced TiO2.

Asia-Pacific is the biggest export destination for Chinese TiO2, with its consumption accounts for about 44% of the total export volume. Apart from India, other Asian countries' latest HSBC PMI recorded rises in the output component, indicating that the regional manufacturing sectors are recovering steadily. The loose monetary policy and the strong external demand will consolidate the recovery. The Nikkei Stock Average rose about 57% in 2013, the biggest rise in 41 years. Confidence is increasing and investors are becoming more adventurous. All these signals favour the Asian economy, and consequentially will benefit China's TiO2 exports to Asia-Pacific.

For the other export destinations, industrialisation in South America, which accounts for 16% of China's total TiO2 export volume, will support its economic growth sustainably. China's TiO2 export volume to South America has been increasing. Europe's economy seems to have turned the corner. If the export volume to Europe returns to the same level in 2011, China's TiO2 export volume will increase by about 40,000 tonnes. For years, the export volume to the Middle East has been around 60,000 tonnes, and this figure is expected to sustain in 2014. At last, benefiting from the recovery of the US, the export volume to North America is expected to grow.

Brazil, the US and India are the biggest three importers of China TiO2, with their combined volume accounting for 30% of China's total TiO2 export volume. The HSBC PMI in Brazil returned to 50.5 in Dec. from 49.7 in Nov. Brazil Central Bank predicted that Brazil's economic growth rate in 2014 will be around 1.95%. There are still a few headwinds and uncertainty for Brazil economy. Conditions in India are a little disappointing as there is weak domestic demand, but orders from abroad picked up according to the HSBC's report. Good news came from the US with manufacturing activity growing in Dec. at its fastest pace in 11 months, and the rate of job growth was the strongest since March, according to Markit's Purchasing Managers' Index. The world's biggest economy will help to promote a recovery in the global economy in 2014, which will promote China's TiO2 exports.

Table of Contents of Titanium China Monthly Report 1401:
TiO2 import volume soared while export volume increased moderately in Nov.
Titanium feedstock imports increased while domestic output fell in Nov.
Domestic TiO2 market becomes quieter before the Spring Festival
Export growth to be the driving factor for China's TiO2 consumption in 2014
China produced around 1.90 million tonnes of TiO2 in 2013
It's wise for Shandong Dongjia to halt its IPO application
SRL attains massive growth in production but suffers massive drop in profit in 2013
Comparison of TiO2 properties indicators and requirements of end users
Increasing domestic auto output and lower raw material cost increase KNT's profit
Aroused public concern over pipeline safety to bring opportunities for anti-corrosion coating

Titanium Dioxide 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.

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

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