Longbai Group fired the first shot in 2024 to raise the export price of Chinese titanium dioxide. Longbai Group announced that starting from January 1, 2024, the sales prices of various models of titanium dioxide will be increased by $100 per ton for international customers on the basis of the original price.
Since 2023, the domestic titanium dioxide industry has initiated six rounds of price increases, with a cumulative increase of 4500-6000 yuan/ton domestically and a cumulative increase of 700-850 US dollars/ton overseas. From the perspective of transactions, Longbai Group fired the first shot at the rise, and other companies followed suit. From the current perspective, Longbai Group is only targeting overseas customers and has not seen any increase in domestic demand.
Why choose overseas markets for the first price increase in 2024?
In 2023, the Eurasian Economic Commission issued Announcement No. 2023/374/AD38, stating that in response to the application of enterprises from the Eurasian Economic Union, an anti-dumping investigation will be launched against titanium dioxide originating in China in accordance with Order No. 8 of the Internal Market Protection Department of the Eurasian Economic Commission on August 4, 2023. Following the Eurasian Economic Commission, on November 13, 2023, the European Commission issued a statement stating that it had launched an anti-dumping investigation against titanium dioxide originating in China. The data provided by the alliance shows that in recent years, the import volume of Chinese titanium dioxide and the market share of the European Union have significantly increased, which is due to the dumping accounts of Chinese exporters. In recent years, the profitability of EU manufacturers has declined, and some factories have had to stop producing titanium dioxide. If established in the later stage, it may increase costs and reduce profits for Chinese manufacturers.
The export volume of titanium dioxide in China has been increasing year by year from 2019 to 2023, with a current export dependence rate of 41%. In 2022, the export volume of titanium dioxide from China reached 1.41 million tons, reaching a nearly five-year high. According to customs data, the cumulative export volume from January to October 2023 was 1.3734 million tons, an increase of 20.15 million tons compared to the same period last year, with a growth rate of 17.19%. It is expected that the export volume of titanium dioxide in China is expected to exceed 1.6 million tons in 2023, and may reach a new high.
With the renovation and expansion of equipment in the domestic titanium dioxide industry, titanium dioxide not only experiences high production capacity growth, but also a significant increase in production. Within the year, with a series of renovations and expansions such as Hengyang Yutu, Qianjiang Fangyuan New Construction Project, and Haifengxin Reformation Project, it is expected that China's titanium dioxide production will reach 4 million tons by 2023. The production growth is far higher than the consumption, and there is severe oversupply in the domestic market. Titanium dioxide production enterprises are actively expanding overseas markets.
With the increase of production capacity in the domestic titanium dioxide industry, China's titanium dioxide production capacity accounts for 60% of the global production capacity and has become the world's largest producer of titanium dioxide. In 2023, international company Venator shut down two factories in Italy and Germany, and then announced its application for bankruptcy protection; In August, Chemurs announced the closure of the Taiwan Guanyin titanium dioxide factory. The reduction in global titanium dioxide production capacity has led to a decrease in international titanium dioxide supply, which is even more favorable for China's titanium dioxide export market. Due to the price advantage of domestic sulfuric acid based titanium dioxide in the international market, coupled with the depreciation of the RMB, it is beneficial for the export market and also improves the situation of oversupply in China.
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