Following are headline news of the Titanium Dioxide
China Monthly Report:
Abnormal weather
and upgrading of existing waterproofing construction generate bright prospects
for domestic waterproofing coatings producers
The abnormal and
frequent floods in China this year and the upgrading of existing outdated
constructions are generating opportunities for waterproofing materials
producers. Oriental Yuhong, a major producer of waterproof materials and
products, is predicted to exceed expectations regarding its performance in
Q1-Q3 2013. Oriental Yuhong's performance reflects the bright prospects of the
waterproof materials industry. Thus, the domestic demand for TiO2, which is
used to manufacture waterproof materials, will correspondingly increase.
Changzheng Electric to enter into the upstream TiO2
industry through asset replacement
Changzheng
Electric will enter into the TiO2 industry by replacing its non-performing wind
power assets with ilmenite & zircon assets. This asset replacement is
predicted to significantly improve its profitability.
Domestic TiO2 price slightly increased from
mid-Sept. to mid-Oct. as downstream demand turned warmer
The recovery of
the downstream demand in the third quarter led Sichuan Lomon to raise the price
of its flagship product. This caused the other TiO2 related companies to follow
Sichuan Lomon by increasing their prices for their own products. Sichuan
Lomon's price increase also contributed to the relatively higher price of
rutile TiO2 in Southwest China in Oct.
Letong Chemical announces the withdrawal of its
application to raise capital for a 30,000t/a ink project
Letong Chemical
recently announced that it is withdrawing its application to raise capital for
a 30,000t/a ink production facility construction project. However, it will keep
the construction of the project running while finding other ways to raise
capital if necessary.
Total titanium feedstock supply volume increased by
17.81% in Aug.
The titanium
feedstock supply in China dramatically increased by 17.81% MoM, indicating the
optimistic prospects for TiO2 in the near future. Notably, despite the
increasing supply in China, the volume of titanium feedstock imports fell by
8.40% MoM and 16.55% YoY.
Import volume declined by 9.42% while export volume
kept growing in Aug.
TiO2 imports moderated
its growth momentum while the export volume showed signs of recovery. It is
predicted that the TiO2 export volume in 2013 may exceed that in 2012. The
average import prices generally witnessed slight increases, while the export
prices of five tracked domestic exporters continued to decline.
Huntsman's acquisition of Rockwood's TiO2 business
likely to make the global TiO2 industry more concentrated among fewer
enterprises
The disappointing
market conditions in the TiO2 industry has led to increased merger and
acquisition activities, and the global TiO2 industry is likely to become more
concentrated with fewer players. Huntsman's acquisition of Rockwood's TiO2
business is one example of the consolidation within the industry. However,
whether the mergers & acquisitions trend will catch on in China is
uncertain, and there are domestic factors which make this unlikely.
Domestic TiO2
price may increase as DuPont and Huntsman lead the fourth wave of price
increases in 2013
The
consecutive price increase movements implemented by the multinational giants in
the international TiO2 market may play a positive role in lifting up the
domestic TiO2 price. Both the international and domestic TiO2 prices have
remained low due to the sluggish market demand. However, the key factor behind
the domestic TiO2 price is the supply and demand situation.
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