Titanium Dioxide China Monthly Report

As the temperature decreases domestically and heating system begins to work in North China, operating rates of downstream factories of TiO₂ in North China also dropped. As a result, the overall demand for TiO₂ in domestic market shrank. Nevertheless, most large TiO₂ manufacturers still have abundant orders currently and thus spot products will be in short supply in the short term. Domestic TiO₂ manufacturers mainly kept production to supply previous orders and only a few new deals were made. TiO₂ prices remained strong under tight supplies.

The market of high titanium slag was depressed in Nov. and prices have reached the bottom. The market of acid dissolved titanium slag continued to improve and prices grew as ilmenite prices went up. Industry insiders disclosed that many high titanium slag producers have huge cost pressure so they shifted to acid dissolved titanium slag temporarily.

Important market dynamics in Oct. 2020

In late Oct. 2020, CNNC HUAYUAN Titanium Dioxide Co., Ltd. founded a holding subsidiary, Xinjiang Desheng New Material Technology Co., Ltd. Subsequently, Xinjiang Desheng signed the Investment Attraction Framework Agreement with the People’s Government of Hami City; it plans to build the world’s largest rich titanium product base in Hami City.

On 3 Nov., 2020, Pangang Group Vanadium Titanium & Resources Co., Ltd. announced that its subsidiary, Pangang Group Titanium Industry Co., Ltd., would accept 51% shares of Panzhihua Guotai Technology Co., Ltd. with its own capital of USD4.68 million (RMB31.40 million).

In late Oct. 2020, the ceremony for the contract signing of 20 projects was held in Fuling District, with investment totaling USD4.29 billion (RMB28.75 billion) and annual output value exceeding USD16.41 billion (RMB110.00 billion). The 500,000 t/a chloride-process TiO₂ project of Dinglong Group Co., Ltd. is one these projects.

The USD/RMB exchange rate in this newsletter is USD1.00=RMB6.7050 on 2 Nov., 2020, sourced from the People’s Bank of China.

All the prices mentioned in this newsletter will include the VAT, unless otherwise specified.

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