Longbai Group fired the first shot of China's titanium dioxide export price increase in 2024. Longbai Group announcedFrom January 1, 2024, the company's various types of titanium will be raised by 100 US dollars to various international customers on the basis of the original price.
Since 2023, the domestic titanium dioxide industry has opened 6 rounds of price increases, with a total of 4500-6000 yuan tons in China and 700-850 US dollars in overseas. From the past point of view, Longbai Group fired the first "first shot", and other companies followed suit. From the current point of view, Longbai Group only targets overseas customers, and there is no domestic customer yet.
Why is the first rise in 2024 to "fall" overseas markets?In 2023, the Eurasian Economic Commission issued Announcement No. 2023 374 AD38, stating that at the request of the Eurasian Economic Union enterprises, in accordance with Order No. 8 of the Department of Internal Market Protection of the Eurasian Economic Commission dated August 4, 2023, an anti-dumping investigation was initiated against titanium dioxide originating in China. Following the Eurasian Economic Commission, on November 13, 2023, the European Commission issued an announcement stating that the European Commission launched an anti-dumping investigation into titanium dioxide originating in China. Data provided by the alliance shows that China's titanium dioxide imports and EU market share have increased significantly in recent years, and this has happened due to dumping accounts by Chinese exporters. In recent years, the profitability of EU producers has declined, and some factories have had to stop producing TiO₂. If established at a later stage, it may increase the cost of Chinese producers and reduce profits. From 2019 to 2023, China's titanium dioxide export volume will increase year by year, and the current export dependence will reach 41%. In 2022, China's titanium dioxide export volume will reach 1.41 million tons, a five-year high, and according to customs data, the cumulative export volume from January to October 2023 will be 137340,000 tons, an increase of 20 over the same period last year150,000 tons, an increase of 1719%。It is estimated that China's titanium dioxide exports are expected to exceed 1.6 million tons in 2023, or will reach a new high.
With the reconstruction and expansion of domestic titanium dioxide industry equipment, titanium dioxide not only ushered in high growth in production capacity, but also ushered in a substantial increase in output, with a series of reconstruction and expansion such as Hengyang Yutu, Qianjiang Fangyuan new project, Haifengxin reforming project, etc., it is expected that China's titanium dioxide output is expected to reach 4 million tons in 2023. The growth of output is much higher than the consumption, the domestic market is seriously surplus, and titanium dioxide manufacturers are actively expanding overseas markets. With the increase in the production capacity of 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, the international company Fanengtuo closed two factories in Italy and Germany, and then announced that it would file for bankruptcy protectionIn August, Chemours announced the closure of its Guanyin titanium dioxide plant in Taiwan. The reduction of global titanium dioxide production capacity has caused a decrease in international titanium dioxide, which is more beneficial to China's titanium dioxide export market. Due to the domestic sulfuric acid titanium dioxide has the best advantage in the international market, coupled with the depreciation of the RMB, it is good for the export market, and it also improves the situation of domestic oversupply.