2023 titanium dioxide market summary and 2024 market forecast

2023 titanium dioxide market summary and 2024 market forecast

In 2023, China's titanium dioxide market experienced four stages of "ups and downs", and the price of titanium dioxide increased by 1600-1800 yuan/ton as a whole compared with the beginning of the year, an increase of 11%, as of press time, the tax-included ex-factory price of China's rutile titanium dioxide is 15800-17300 yuan/ton, and the ex-factory price of anatase titanium dioxide including tax is 14700-15000 yuan/ton. In 2023, the titanium dioxide market did not rise or fall sharply as a whole, and the market operated relatively smoothly.

1. In the first quarter, the market price of titanium dioxide was effected by the digestion of the inventory, the increase in export orders and the high cost of rising, the price of titanium dioxide rose steadily from January to February; In late March, due to the rapid rise in prices, there was some resistance from the downstream, and individual companies made fewer profits at the end of March;

2. The price of titanium dioxide in the second quarter is weak, domestic demand is sluggish, and the price has fallen; the price of titanium dioxide has continued to decline since April, and the market price has declined by about 1,300 yuan/ton as of the end of June, and some have been lost. Some enterprises have reduced production since May, and prices have stopped falling at the end of June;

3. In the third quarter, the titanium dioxide market was affected by the recovery of demand and rising costs, and the price of titanium dioxide continued to rise from July to September, and the market continued to rise for three consecutive rounds. Under the high supply and price level, there was pressure on products selling for enterprises in late October, and the prices of individual enterprises were adjusted;

4. As of mid-November, the market price is still higher than the price at the beginning of the year, due to the sluggish market demand and the decline in raw material prices, the titanium dioxide market has been weakly adjusted since November, and there is preferential price by individual large factories is 500-600 yuan/ton compared with the previous period, and for some enterprises, it’s about 1500 yuan/ton fall compared with the previous price; Affected by demand, the operating rate of titanium dioxide declined, and the decline in market prices may slow down in the later period.

According to TDD statistics, China's titanium dioxide output is expected to be 4.2 million tons in 2023, an increase of 300,000 tons over last year, and the titanium dioxide production capacity will be released again in 2024, which is expected to increase by nearly 350,000 tons of titanium dioxide.

2024 Titanium Dioxide Market Forecast:

According to the national news report: After a short-term impulse consumption rebound brought about by the economic reopening in 2023, economic growth is expected to be closer to the "new normal" in 2024, with GDP continuing to rebound year-on-year, and investment growth of about 4%. At the same time, global trade is expected to contract slightly in 2024, but China's export growth is still likely to be slightly higher than that of the world. Given that import growth remains weak, the contribution of net exports to growth is expected to remain high, while the pull of net exports to real GDP is likely to rise further.

1. Since the second half of 2023, the multi-level real estate policy has been fully leveraged, and the current intensity is gradually approaching 2014, and the state believes that 2024 may be the year of real estate stabilization;

2. The new production capacity of China's titanium dioxide market continues to increase, and it is expected that the domestic titanium dioxide production capacity will reach 6 million tons in 2024, and the monthly output will exceed 500,000 tons;

3. The international market share will increase steadily, and the export volume is expected to be 1.65 million tons in 2023 and 1.8 million tons in 2024. The quality of domestic products will be improved and the competitiveness will be enhanced;

4. The domestic supply of the raw material of titanium concentrate is still in a tight situation, and the price continues to be high;

Under the increase in high-speed supply, although the terminal demand may increase, the titanium dioxide market will enter a stage of oversupply compared with the growth rate of titanium dioxide supply, and titanium dioxide companies will still face great pressure in 2024.