Titanium Dioxide China Monthly Report 1508(12 issues per year)

Date: 2015-09

“In this issue, apart from paying attention to the imports, exports, price, and upstream & downstream products of TiO2 as usual, CCM also reviewed and analyzed the export market of TiO2 and the domestic coating market in China in H1 2015. Specifically, the influence of the devaluation of Renminbi to the China’s export market of TiO2 was also analyzed.

First of all, in June 2015, China’s export volume of TiO2 slumped significantly. June is the slack season for sales of TiO2 in China’s domestic market, making domestic manufacturers had to turn to the foreign market. However, demand from the foreign market was also depressed. In addition, the international TiO2 price kept decreasing, resulting in the weakening of competitive advantages of China’s TiO2 products. Meanwhile, in the same month, China’s depressed import market of titanium ore began to recover and the average import price was quite stable. Under such circumstances, China’s import volume of titanium placer and feedstock climbed up significantly. Import volume of titanium placer and feedstock from India realized a MoM increase of up to 136.22%, becoming the main reason for the increase of China’s total import volume in June.

Secondly, CCM made a conclusion on China’s export market of TiO2 and analyzed the influence of the devaluation of Renminbi to the export market. CCM believed that the devaluation of Renminbi can provide bigger profit margins for Chinese TiO2 manufacturers, but it cannot its market competitive power. In addition, CCM comprehensively analyzed the growth speed of coating output and attributed its slowing down growth speed to the decreasing demand from downstream markets such as the real estate market and the automobile market. In H1 2015, China’s market for titanium sponge began to recover but CCM thought that it would dropped to the bottom again in H2 2015 in consideration of the unbalanced supply and demand relationship.

Thirdly, CCM also paid attention to company dynamics. On 5 Aug., 2015, CNNC TD released an announcement, disclosing that its TiO2 industry integration project declared on 7 July, 2015 was stopped; on 20 Aug., 2015, Chemours announced to launch its five point transformation plan. It will eliminate roughly 150,000 t/a of TiO2 capacity in the US; on 24 Aug., 2015, Henan Billions released its 2015 semi-annual financial report, showing that it produced 108,200 tonnes of TiO2 and sold 107,800 tonnes in H1 2015. It is worth noting that on 12 Aug., 2015, Warehouse explosions in Tianjin have caused extensive destruction in and around the warehouse compound. Regarding the TiO2 industry, its influence is mainly reflected in cost of storage and logistics and the direct impact is very limited.”


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