The
General Manager Fu Yijiang of the Titanox Group
expressed the same expectation with other domestic TiO2 prioducers and
distributors that the price of domestic TiO2 might increase in H2 2013 during
CCM's telephone interview with him. Titanos Group, founded in 1989, is the
largest distribution channel and service provider of TiO2 in China and commands
significant market recognition and market shares in the industry.
The
price of TiO2 kept declining in the past H1 2013. According to CCM's price monitoring,
the average price of rutile TiO2 declined from around USD2,800/t at the
beginning of this year to around USD2,500/t in the middle of June 2013, and the
average price of anatase TiO2 declined from around USD2,350/t at the beginning
of this year to around USD2,100/t in the middle of June 2013. As a result, most
of domestic TiO2 companies have reached a break-even point in H1 2013, while
they enjoyed a large scale of profitability during 2011 to H1 2012.
According
to Manager Fu, domestic TiO2 industry encountered the longest downside cycle in
recent years. In Jan. 2013, domestic TiO2 price continued the downtrend begun
in H2 2012. In Feb.–March 2013, due to the traditional dull season and the
Chinese Spring Festival holiday, the domestic TiO2 price kept relatively
stable, but the price kept decreasing after March 2013.
Mr.
Fu deemed that the weakening demand from downstream caused the sluggish market
of TiO2 industry. First of all, the biggest TiO2 application field—coating
industry also witnessed slowing growth in output. During the first five months
of 2013, 4,787,822 tonnes of coatings were produced in China totally, attaining
a YoY growth of 5.39%, which is much lower than that of 10.70% in the same
period in 2012. Most coatings producers shortened their purchasing interval and
thus the inventory cycle time was cut down to one or two months from three
months to avoid large-scale purchase and purchase TiO2 upon actual demand
instead. Secondly, the export volume of TiO2 during Jan.–May 2013 was also
disappointing. According to the monitoring data of CCM, China's TiO2 export volume in
Jan.–May 2013 slided to 161,183 tonnes from 209,551 tonnes in the same period
of 2011, seeing a YoY fall of 23.08%. On the contrary, the TiO2 import volume
has kept increasing since Feb. 2013, which stroke the domestic market.
Although
the coatings & ink industry might still be in the weak status, the domestic
price of TiO2 is expected to increase in H2 2013 by domestic TiO2 producers and
distributions. What's more, the consecutive price increase actions of
international TiO2 giants will do favor to domestic TiO2 market.
Find
more news about the titanium dioxide industry in China through CCM’s latest issue of Titanium Dioxide China
Monthly Report issued in July.
Editor's notes
Headlines of this
issue
Industrial
Information
Import
volume of TiO2 was up 23.15% while export volume increased only 5.99% in May
2013
Total
titanium feedstock supply volume fell 6.48% in May compared with that in April
The
decline of the domestic TiO2 price slowed down with prices falling only
slightly in July 2013
Company dynamics
Rockwood
canceled the stripping of its TiO2 business
Fu
Yijiang: domestic TiO2 might meet price up in H2 2013
*ST
Jiyao predicted its H1 2013 net profit to be around USD6.80 million with a
100%
sales-output ratio
Upstream
Pangang
Titanium cuts costs by using 100% local titanium feedstock to smelt
titanium
slag
Downstream
PPG
achieved historical sales record in Q2 2013
Real
estate: sales volumes and revenue both enjoyed high growth in H1 2013
10,782,200
automobiles sold in H1 2013 under concerns about restrictions on
vehicle
purchases
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
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