Titanium Dioxide China Monthly Report 1509

Date: 2015-10

“In July 2015, ups were recorded in China’s exports and imports of TiO2, narrowing down the gap between the export volume and import volume. As the import price of TiO2 kept dropping, the gap between the export price and import price also shrank.
In July 2015, though import price of ilmenite soared significantly, China’s import volume of ilmenite only dropped a little. The depressed import marker of ilmenite began to recover in H2 2015. Regarding the domestic output, it maintained its downward trend since April this year.
Sept. and Oct. are traditional peak seasons for TiO2 in China. However, in Sept. 2015, the China’s TiO2 market was not recovered yet. The severe unbalance between supply and demand has caused the TiO2 price kept dropping. As a result, many domestic small and medium sized TiO2 manufacturers suffered from losses and the operating rate of the whole industry decreased. Influenced by this, prices of titanium slag and titanium concentrate also slumped.
On 22 Sept., 2015, Xingmao Titanium declared that its chloride-processed TiO2 project which was shut down previously has begun heating-up and will resume production very soon. CCM believes that the decrease of inventory due to the previous production halt and goods selling is the main reason for its restart. In recent years, as China’s TiO2 industry gradually hits a low point, the performance of China’s chloride-processed TiO2 market is very unsatisfactory, and for those Chinese enterprises disliking longterm investment, chloride-processed TiO2 seems to have become a hot cake that they are unable to take.
Since June 2015, China’s TiO2 market kept tumbling. During the traditional peak season, Sept. and Oct., TiO2 price continued its downward trend and showed no signs of improvement. Both of the market price and the operating rate of TiO2 dropped to their historical low, reflecting that China’s TiO2 industry was facing its unprecedented challenges.
At the end of Aug. 2015, China’s central bank lowered the benchmark deposit and lending rates and cut the reserve requirement ratio at the same time. CCM believes that it will release more liquid capital into the market and the realty market as well as the stock market will regain momentum. This is good news for China’s coating industry and TiO2 industry.
At the end of Aug. 2015, Henan Billions announced its earnings for H1 2015. Accordingly, its revenue and net profit achieved impressive growth year on year. It is analyzed by CCM that Henan Billions’ layout of TiO2 industrial chain in the early stage has played an important role in achieving excellent performance. In the future, the launch of its chloride-process TiO2 project and its performance in the overseas market are also worth expecting.
In Sept. 2015, demand for TiO2 from downstream markets was not improved in China and TiO2 price continued its downward trend since June and hit its historical low in Sept. In spite of this, market price of its upstream product, ilmenite, was basically stable. CCM believes that under-supply was the major reason.
On 13 Sept., 2015, the latest development and investment data of the realty industry showed that China’s property market has been falling. China is working on this and the market is expected to recover during Chinese traditional peak season in Sept. and Oct. However, CCM analyzes that the recovery of the realty industry will not boost the TiO2 market in a short time.
Since 2015, the global macro economy is depressed and the global coating industry is in turmoil. According to CCM, most of the international coating giants performed well in Q2 2015, but since 2014, there is still imbalance in the development of the whole industry among regions.”


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