Forecast and Analysis on the Current Situation and Development Trend of China's Titanium Dioxide Market in 2022

Titanium dioxide, an important inorganic chemical pigment, is mainly composed of titanium dioxide. There are two production processes of titanium dioxide: sulfuric acid process and chlorination process. It has important applications in coating, printing ink, paper making, plastic rubber, chemical fiber, ceramics and other industries.

Market status

1. Output

With the development of economy and the improvement of people's living standards, especially the industrialization and urbanization of developing countries with large populations, the demand for titanium dioxide products is growing. In 2021, China's titanium dioxide output will be about 3813500 tons, with a year-on-year growth of 8.58%. As the overall prosperity of the construction industry rebounds, the production capacity of chlorinated titanium dioxide will be improved, and the output is expected to reach 4.11 million tons in 2022.

2. Apparent demand

Due to the growing demand of downstream industries such as coating industry, plastic industry and paper industry, the demand for titanium dioxide has experienced a steady growth. In 2021, China's apparent demand for titanium dioxide will be 2.7402 million tons, an increase of 274,000 tons over 2020, with a year-on-year growth of 11.11%. It is expected that it will reach 2.9 million tons in 2022.

Development trend

1. Foreign market share continues to expand, and the user market will develop from low-end to high-end

In recent years, the external demand for titanium dioxide has continued to grow. With the further improvement of the quality of sulfuric acid products produced under the traditional process, under the dual advantages of price and quality, titanium dioxide is becoming more and more popular among middle - and low-end downstream users in developing countries and regions. At the same time, under the passive competitive pressure, the capacity of foreign sulfuric acid processes is shrinking as a whole. With a more stable and efficient titanium dioxide supply mechanism, China's titanium dioxide has become the first choice for overseas downstream users, Foreign market share continued to expand. With the upgrading of industry technology, the quality of titanium dioxide will be further improved, and the foreign user market will develop from the low-end field to the high-end field.

2. Chlorination has become the mainstream production process in titanium dioxide industry

With the tightening of industrial and environmental protection policies, higher requirements are put forward for titanium dioxide production and energy consumption. Titanium dioxide production processes mainly include sulfuric acid process and chlorination process. Compared with the traditional sulfuric acid process, the chlorination process has the advantages of short process, large capacity, energy conservation and environmental protection. Under the development trend of low carbon ring ratio, chlorination has become the mainstream production process of titanium dioxide. Enterprises with low cost and mature large-scale chlorination titanium dioxide technology have the first mover advantage, ushering in greater development opportunities.

3. Industry concentration will gradually increase

With the tightening of industrial and environmental protection policies, the state has issued access conditions for the titanium dioxide industry, which clearly stipulates the annual output, production process units, production process and relevant technical indicators of new titanium dioxide enterprises. With the implementation of environmental protection policies and the rise of environmental protection costs, small and medium-sized manufacturers will be forced to shut down or restrict production. Titanium dioxide manufacturers will gradually reduce, the scale of individual manufacturers will gradually expand, and the industry concentration will gradually increase.