Titanium dioxide China News Sample - Published by CCM International Ltd

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Titanium dioxide China News is a monthly report with 12 issues per annum published by CCM International Limited. It's your gateway to know what is happening in China Market. Key columns include supply & demand, upstream, company dynamic, downstream,price update, policy & legislation, special report,etc. If you are interested in this newsletter or ask for the latest sample, please contact emarket10@cnchemicals.com or 86-20-38767072.

Text of Titanium dioxide China News Sample - Published by CCM International Ltd

  • Copyright CCM International Limited

    TiO2 China Monthly Report

    Vol.2 Issue 12. 2009

  • TiO2 China Monthly Report Vol.2 Issue 12.2009

    www.cnchemicals.com CCM International Limited2

    Supply & Demand 1Chinas TiO2 trade in October 1ISKs TiO2 distribution in China 2

    Upstream 3Titanium resource draws wide attention 3TiO2 industry is expected to enjoys ample sulfuric acid supply in the long-term 4Huge new mining resource to be proved 4Titanium metal industry sets target for 12th Five Year 5Ching-Hing acquires titanium mining right 5

    Company Dynamic 5Jinan Yuxing to start rutile TiO2 pilot production 5Pangang Titaniums rutile TiO2 output hits new record 5Rutile TiO2 competition to be intensified 6

    Downstream 7Furniture coating to boost TiO2 consumption 7Indian coating industry boosts TiO2 consumption 8Yips Chemical achieves huge profit growth in coating 8

    Price Update 8Price update in December 2009 8

    Policy & Legislation 10Policy interpretation related to TiO2 industry 10-- By Liu Changhe 10Raised transport cost curbs TiO2 price downturn 10China continues tariff-free titanium slag import 11

    Special Report 11Review of Chinese TiO2 industry 2009 11----- policy, raw material, production 11Profitability to shrink in Q1 2010 12

    Latest reports related to TiO2 from CCM

    - The Survey of Titanium Dioxide in China-3rd EditionPublished in April 2009

    - Production and Market of Pigment in China The second edition was made in June 2008.

    - Commodity Titanium Dioxide in ChinaThe third edition was made in June 2008.

    - Specialty Titanium Dioxide in ChinaThe third edition was made in June 2008.

    - Production and Market of Masterbatch in ChinaMade in July 2008

    - The Future of Carbon Black in ChinaThe second edition was made in June 2008.

    Trade Report of product related to TiO2 from CCM:- Titanium Dioxide Production and Trade in China 2007 - June.2009

    CCM coming newsletter related to TiO2- Inks China News

    Contact us for details of the researches in year 2009 from CCM.

  • TiO2 China Monthly Report Vol.2 Issue 12.2009

    www.cnchemicals.com CCM International Limited3

    Main companies covered in this issue

    Editor Note

    Welcome to the December issue of the TiO2 China Monthly Report.

    The domestic TiO2 industry has recovered rapidly from the financial crisis in H1 2009, has experienced ,thanks to a series of supporting policies released by the government, a rebound in growth in H2 2009.

    On November 26th, 2009, Chinas State Council has set its target on carbon emission reduction that China will cut its 2005 unit carbon emission of GDP by 40%~45% by the end of 2020. As a 2H1R industry (resource-based industries with high energy consumption and heavy pollution), the TiO2 industry will be forced to become more environmentally friendly as it confronts stricter environmental protection requirements.

    With TiO2 demand entering a slack season, TiO2 price weakened starting in November 2009 and will keep this downtrend throughout Q1 2010. TiO2 capacity expansion will continue in 2010 in China, especially for rutile TiO2, which will intensify industry competition . Coupled with rising production costs, this will cause manufacturers profitability to shrink. However, as a consequence the TiO2 industry may gain more government support such as resumption of a tax rebate for export next year.

    The capacity expansion will certainly boost titanium ore demand, which is in increasingly tight supply. This has drawn wide attention from related producers. However, TiO2 industry will enjoy ample supply of another raw material, namely sulfuric acid, for five to

    ten years.

    Headlines of TiO2 China Monthly Report 0912

    Chinas TiO2 imports show steady growth, while exports decline in October.

    As an essential raw material of TiO2, the gradually exhausted titanium resource with rising value is attracting wide attention in China.

    The TiO2 industry enjoys an ample supply of sulfuric acid, which is expected to continue for five to ten years.

    Chinas rutile TiO2 capacity is expected to soar next year, which will intensify domestic competition.

    Chinese furniture coating is to boost TiO2 consumption, which drives Huihuang Xiangying to expand production scale.

    China is likely to promulgate Standards for Tax Rebate of TiO2 Export and Entry Criteria for TiO2 Production soon.

    Boosted by supporting policies, Chinas TiO2 production has recovered rapidly by the end of 2009, drawing wide attention.

    TiO2 profitability is expected to shrink in Q1 2010 with price downturn.

  • TiO2 China Monthly Report Vol.2 Issue 12.2009

    www.cnchemicals.com CCM International Limited1

    Supply & DemandChinas TiO2 trade in October

    Chinas TiO2 import and export trends have diverged in October, with import volume steadily increasing, while export volume decreased.

    Thanks to the stable demand and the negotiable price (despite several price hikes announced by multinational importers), TiO2 import volume in October hit a record high for the past three years of 25,099 tonnes, up 2.1% over this September. However, owing to weak imports in Q1 2009, the cumulative import volume in the first ten months of 2009 is still lower than that in the same period of 2008.

    TiO2 export volume in October declines by 13.4% over September, only amounting to 12,883 tonnes. The export volume downtrend is caused by continually rising export price in October. Despite the downtrend, cumulative export volume by October in 2009 has seen a remarkable 41.6% growth year on year.

    In the autumn, domestic TiO2 manufacturers tried to narrow the gap between import price and export price by continually raising export price. Average export price rose 5.0% in October, following a 3.7% increase in September. Average import price declined slightly in October, despite several rounds of announced price hikes, as consumers refused to accept the increases (FIGURE 1).

    Import growth stable

    As predicted previously (See issue 0911, page 1), Chinas TiO2 imports keep increasing in Q4 2009.

    Encountering consumer resistance to price hikes in China; many TiO2 multinationals adopted flexible prices in actual deals to maintain their market position. With a rising domestic operating rate, TiO2 supply in China is ample and competition is intense. Accordingly, the average import price of TiO2 decreased by USD48/t over September.

    The booming real estate industry and automobile industry have driven, and will continue to drive coating, plastic and papermaking (mainly decor paper) consumption upward. It is worth noting that TiO2 for some particular end-use sectors is mainly imported from a few manufacturers. For instance, 95% imported TiO2 for papermaking in 2009 is produced by DuPont in Mexico (TABLE 1).

    There is an obvious TiO2 import volume increase from Australia and Mexico because of their products price advantage, while imports from U.S. and Japan decrease a lot (TABLE 2). With the establishment of CAFTA from January 2010 that enables free tariff for TiO2 trade between China and ASEAN countries, TiO2 imports from Malaysia and Singapore will increase in the future.

    In the coming months, Chinas TiO2 demand will remain robust, which will certainly drive up TiO2 imports. The strong demand, coupled with DuPonts announced price hike, which has been in effect in Asia since December 1st, 2009, will provide room for import prices to rise, in the coming months, though the extent might not be large .

    Exports Decline --Export Price Increases Reduce Chinese Export Volume in October.

    Driven by increasing global price and booming domestic demand, some Chinese TiO2 manufacturers have initiated TiO2 price increases in October, especially large manufacturers, such as Shandong Dongjia and Henan Billions. Accordingly, average export price of TiO2 in October rose by USD77/t over September, leading to 13.4% decline in export volume.

    FIGURE 1: Chinas TiO2 trade situation, Jan. 2007-October 2009

    0

    5,000

    10,000

    15,000

    20,000

    25,000

    30,000

    35,000

    Jan-

    07

    Mar-0

    7

    May-

    07

    Jul-0

    7

    Sep-

    07

    Nov-

    07

    Jan-

    08

    Mar-0

    8

    May-

    08

    Jul-0

    8

    Sep-

    08

    Nov-

    08

    Jan-

    09

    Mar-0

    9

    May-

    09

    Jul-0

    9

    Sep-

    09

    Vo

    lum

    e, t

    on

    ne

    0

    500

    1,000

    1,500

    2,000

    2,500

    3,000

    Pri

    ce, U

    SD

    /t

    Import Export Import price Export price

    Source: China Customs, CCM International

    TABLE 1: Chinas TiO2 import situation by end use sector, 2007-Oct.

    2009, tonne

    Segment Jan-Oct 07

    Nov-Dec 07

    Jan-Oct 08

    Nov-Dec 08

    Jan-Oct 09

    Coating 53,670 10,398 50,090 6,224 49,388 Plastic 41,998 7,987 38,256 5,097 31,295 Rubber 12,589 2,415 14,134 1,836 6,692

    Fiber 13,569 2,588 11,919 1,603 5,657 Papermaking 5,607 1,700 7,920 1,280 6,600 Ink 1,348 324 1,800 196 1,581 Leather 1,345 174 987 427 617 Cosmetics 207 45 246 28 616 Food 87 180 1,187 0 358 Other 1,725 473 1,678 152 1,854 Rutile (Uncertain application)

    106,831 21,253 102,550 12,348 100,681

    Anatase(Uncertain application)

    6,546 1,188 3,241 473 2,500

    Source: China Customs, CCM International

  • TiO2 China Monthly Report Vol.2 Issue 12.2009

    www.cnchemicals.com CCM International Limited2

    It is worth noting that some TiO2 manufacturers who initiated the price hike have not experienced a volume decline as they have endeavored to explore new global markets. Take Shando