TiO2 China Monthly Report 1305 (12 issues per year)
|Published: May, 2013
Price: US $3,564
Summer is coming, but it is still cold for TiO2 industry as price is still declining and de-stocking is underway despite April is traditional booming season for TiO2 purchasing. Export volume of TiO2 during Jan.–Feb. 2013 declined 33.20% compared with that in the same period of 2012. The economic recovery of the U.S. remains fragile and the Euro zone is still dipped in recession. Domestic GDP growth was 7.7% in Q1 2013 according to National Bureau of Statistic of China, which is much lower compared with that in 2012. Besides, growth rate of investment in real estate industry was 20.2% in Q1 2013, far higher than the growth of GDP, indicating China’s economy still severely depends on infrastructure investment. Under the circumstance of weak demand and overcapacity, in order to sustain the economic recovery, the government might increase infrastructure spending in the coming months, which might bring a reversal for the current sluggish TiO2 market.
For company dynamic, Henan Billions’ profit declined dramatically while its inventory rate soared in 2012, reflecting it faced tough times; Changhe Liu deems it still takes time for domestic TiO2 producers to master chloride process technology; Fuming Hutong was ordered to suspend production due to waste water discharge exceeding standard, highlighting the environmental pollution by the TiO2 industry. In the upstream, Sichuan Lomon cooperates with WTR to guarantee sufficient supply of titanium feedstock for its new TiO2 project with a capacity of 100,000t/a, which might have great significance to the domestic TiO2 manufacturers as most of them lack titanium resource.
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The import volume of TiO2 in China down 24.66% while the export volume down 5.93% in Feb. 2013 compared with that in Jan. 2013.
The total supply of titanium feedstock in China in Feb. 2013 decreased by 19.51% compared with the previous month.
The domestic TiO2 industry is still in the downtrend process in April 2013 and TiO2 prices in the next month might keep the downward trend.
2012 was a disappointing year for Henan Billions, reflected in the company’s declining profit and soaring inventory rate.
Although some breakthroughs have been made, it will still take time for domestic TiO2 producers to master the chloride process technology.
Blue Star NM is not urgent to strip its TiO2 assets although it suffered profit loss in 2012.
Fuming Hutong was ordered to suspend production due to its waste water discharge exceeding the standard.
Sichuan Lomon’s cooperation with WRT will endow it with sufficient supply of ilmenite.
The decor paper industry consumed about 162 thousand tonnes of TiO2 in 2012, accounting for 9.92% of the domestic TiO2 apparent consumption in that year.
Automobile output in China was around 5.4 million units in Q1 of 2013 with a YoY growth of 12.70%.
Headlines of this issue
Import volume of TiO2 was up 28.07% while export volume was up 63.32% in March 2013
Import & domestic production analysis of titanium feedstock in March 2013
Domestic TiO2 price declined further in May 2013
DuPont’s TiO2 business volume was up 8% while prices were down 9% in 1Q 2013
Pangang Group delivered good performance in TiO2 business in 2012
Four global TiO2 giants witnessed dramatic declines and loss of profit in 1Q 2013
Argex seeks opportunities in the TiO2 industry
Kronos announces price increase for all TiO2 products again
Vietnam to raise its ilmenite export duty from 30% to 40% from June 9, 2013
International coating giants achieved decent profit increases in 1Q 2013 due to lower TiO2 prices
Huarun Paints embroils itself in an illegal layoffs scandal
China produced 1,899,400 units of automobile in April 2013