It
is widely expected that China's economic growth will slow down. The former
investment-led growth model, which depended on the real estate industry, is no
longer in effect. This is causing a decrease in the demand for architecture
coatings. Such a change in the domestic environment has determined the future
development of the TiO2 industry. China's TiO2 output increased from
308,000tonnes to 1,803,000 tonnes in 2011 at a CAGR of 19.33%. Assuming that
2001-2011 is classified as the growth stage of China's TiO2 industry, the
industry has entered a stabilisation stage since the beginning of 2012, according
to Titanium China
Monthly Report issued by CCM in Feburary.
It
can be judged from the actions taken by the TiO2 multinationals that China's
TiO2 industry has entered a stabilisation stage. As the world's largest TiO2
consuming and producing country, China's developments are closely watched by
the TiO2 multinationals During the stabilisation stage, an industry's growth
will slow down or even stop.
In
Sept. 2013, Huntsman Corporation acquired Rockwood Holdings, Inc's titanium
dioxide business, which has caused a further rise in the concentration of the
overseas titanium dioxide industry. In addition, DuPont, the world's largest
TiO2 producer with a large market share in China, has decided to spin off its
titanium dioxide segment, because the company predicted that such a highly
cyclical segment will develop at a low speed in the future. DuPont will pay
attention to high-speed investment opportunities in order to maximise
opportunities for its shareholders.
Various
TiO2 producers in China are gradually increasing the differentiation of its
products and reducing the homogeneity of their product mix. The market has been
subdivided and is maturing. For example, Sichuan Lomon Titanium Co., Ltd.'s
TiO2, which is widely believed to have good performance in every aspect, has a
high price; Shandong Doguide Group Co., Ltd.'s TiO2 has good stability
performance; Yunnan Dahutong Investment Group Company's TiO2 has high covering
power; and BlueStar New Chemical Materials Co., Ltd. Guangxi Branch's TiO2 has
high whiteness.
The
product mix has changed from being dominated by anatase TiO2 of low added value
to rutile TiO2 of high added value. The TiO2 (general type) has been subdivided
into coating grade TiO2, paper grade TiO2, and plastic grade TiO2, and others.
The overcapacity, and the slowdown in the exports of TiO2 implies that China's
TiO2 has been gradually entering a stabilization stage.
TiO2
exports substantially increase at the growth stage but decline when entering
the stabilisation stage. Correspondingly, TiO2 exports fluctuated at a high
level in 2012-2013, following strong growth in 2009-2011. Concerning the production
capacity and output, survey data from CCM shows that the production capacity
and output of China's TiO2 industry were 2.98 million t/a and 1.90million
tonnes in 2013, and the operating rate was 63.76%.
The
analysis method for product life cycle is only used to statistically analyse
the current stage of a product. However, the development of an industry is
dynamic and ever-changing, and technological breakthroughs can change the
direction of the industry. For example, a recent study found that the surface
of TiO2 can be photocatalysed to produce hydrogen, and if the technology is a
breakthrough and related products reach mass production, the future development
of the TiO2 industry will be boosted, and will re-enter the growth stage from
the current stabilisation stage. Therefore, this article only provides an
analytical point of view.
China’s
TiO2 imports increase substantially while exports rose slightly
China's
titanium feedstock supply in 2013 flat from 2012
Post-festival
downturn in China's TiO2 market with slight decrease in price
Panxi
Experimental Zone starts worldwide bidding for six titanium related projects
GPRO
Titanium: net profit increases by 9.98% YoY; anatase TiO2 more profitable than
Rutile Titanium
Anhui
Annada revises downward net profit forecast
Pick-up
of TiO2 market to support DuPont in spinning off its performance chemicals
segment
Strategies
for TiO2 producers in 2014: improve quality, control costs
Henan
Billions forecasts 87.22% decrease in net profit for 2013
China's
TiO2 industry enters into stabilisation stage
Orient
Zirconic intends to acquire 100% equity stake in Winsheen New Material
Changes
in pattern of China's titanium feedstock imports
Sky
Dragon Group's net profit in 2013 may increase by 2%-20% YoY
Double-digit
percentage increases in China's auto output and sales in 2013 boost automotive
coating consumption
Nippon
Paint, Dulux and Carpoly: top three frequent coating keywords in Jan. 2014
AkzoNobel
maintains first place among worldwide coatings manufacturers
Growth
rate of Suzhou Kingswood's revenue decreases in H2 2013
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,
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& Technology Co., Ltd.
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17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
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