In the grand map of the global chemical industry, the titanium dioxide industry is like a bright pearl, emitting a unique light. And China, relying on its strong industrial strength, occupies an unshakable dominant position in the global titanium dioxide market. Behind this position is the rapid development, technological innovation and continuous optimization of the industrial structure of China's titanium dioxide industry over the years.
Global production capacity pattern: China is far ahead
In 2023, the global titanium dioxide industry presents a distinct pattern. According to USGS data, the total global titanium dioxide production capacity reached 9.819 million tons. In this global production capacity competition, China stands on the world stage like a giant with an impressive production capacity of 5.5 million tons, occupying 56.7% of the global market share, and has undisputedly become the leader of the global titanium dioxide market. The United States ranks second with a production capacity of 1.36 million tons, accounting for 14%. Although it has certain strength, there is still a clear gap compared with China. The combined production capacity of China and the United States accounts for 70% of the global titanium dioxide production capacity, and China's dominant position is even more prominent.
In addition to China and the United States, other countries and regions also play an important role in the global titanium dioxide market. The production capacity of Mexico, Germany, Japan and the United Kingdom is more than 300,000 tons, and the combined production capacity of these countries accounts for about 13% of the global total production capacity. In addition, although the production capacity of countries such as Australia, Saudi Arabia, Ukraine, Canada, India and Russia is relatively small, they play a key role in the local chemical market and have an unignorable impact on the global supply chain.
It is worth noting that due to the fluctuations in international market demand and the operation of the titanium dioxide market industry this year, some of the production capacity of internationally renowned companies Chemours and Pan-Energy has withdrawn from the market. This change provides an opportunity for China's titanium dioxide industry to further expand its market share, allowing China's titanium dioxide production capacity share to continue to expand steadily, further consolidating China's leading position in the global titanium dioxide market.
Chinese market: distinct industrial characteristics and strong development trend
The Chinese titanium dioxide market is highly concentrated. By the end of 2023, the effective production scale of 42 full-process titanium dioxide enterprises in the industry will reach 5.5 million tons/year, and the average capacity utilization rate of the industry will be 75.6%. From the perspective of geographical distribution, the production of titanium dioxide is mainly concentrated in Sichuan, Henan, Shandong, Anhui, Guangxi and other places. The output of these regions accounts for more than 66% of the national total output, forming an industrial agglomeration effect, which is conducive to resource sharing, technical exchange and cost control.
In recent years, with the continuous growth of demand for titanium dioxide in downstream coatings, plastics, papermaking and other industries, China's titanium dioxide production has also shown a steady upward trend. In 2023, there will be 42 full-process manufacturers with normal production conditions in the national titanium dioxide industry (excluding post-processing and processing enterprises). In terms of production technology, the industry pattern is rich and diverse. Among them, there are 2 pure chlorination process enterprises (CITIC Titanium, Yibin Tianyuan Haifeng Hetai), which has the advantages of high production efficiency, good product quality and low environmental pollution, representing the development direction of titanium dioxide production technology; there are 3 enterprises with both sulfuric acid process and chlorination process (Longbai Group, Pangang Vanadium Titanium, Lubei Group), which flexibly switch between different processes to meet market demand and cost control needs; the remaining 37 are pure sulfuric acid process enterprises. Although the sulfuric acid process has a long history, it faces certain challenges in environmental protection and product quality.
In 2023, China's titanium dioxide industry ushered in an important development node. With the upgrading and transformation of domestic titanium dioxide production lines and the gradual commissioning of new production capacity, the annual new production capacity is about 1.02 million tons. The total output of rutile titanium dioxide, anatase titanium dioxide and other related products reached 4.28 million tons. Excluding the crude products purchased for surface treatment, the actual output was 4.16 million tons, an increase of 300,000 tons over the same period last year, a year-on-year increase of 7.8%. This growth not only reflects the continuous improvement of the production capacity of China's titanium dioxide industry, but also reflects the strong market demand for titanium dioxide products.
In terms of product structure, China's titanium dioxide is mainly rutile. In 2023, of the total 4.16 million tons of products in the industry, the output of rutile titanium dioxide was 3.6 million tons, accounting for 86.5%, an increase of 8.2% year-on-year; anatase was 420,000 tons, accounting for 10.1%, an increase of 2.19% year-on-year; non-pigment grade and other products were 140,000 tons, accounting for 3.4%, an increase of 12.9% year-on-year. This change in product structure reflects the difference in market demand for different types of titanium dioxide, and also shows the ability of China's titanium dioxide industry in product research and development and market adaptation.
In addition, the number of full-process production lines in China continued to increase in 2023. Among the 42 full-process titanium dioxide manufacturers, there are 16 super-large and large enterprises with actual output of 100,000 tons or more, an increase of 5 from the previous year. The combined output of these companies in 2023 is 3.54 million tons, accounting for 85.1% of the total industry output of 4.16 million tons that year; the combined output of the remaining 26 small and medium-sized enterprises is 620,000 tons, accounting for 14.9% of the output. This change in industrial structure reflects the trend of large-scale development of China's titanium dioxide industry, and the leading role of large enterprises in the industry is becoming increasingly prominent.
Future Outlook: Opportunities and Challenges Coexist
Among the expansion or new construction projects being implemented by existing titanium dioxide producers that have been made public, there are at least 5 non-industry investment titanium dioxide projects that will be completed by the end of 2025, with a designed production capacity of more than 1.3 million tons/year. It is expected that by the end of 2025, China's total titanium dioxide production capacity will reach at least 7.13 million tons/year. This substantial expansion of production capacity, on the one hand, demonstrates the strong development momentum and potential of China's titanium dioxide industry, and on the other hand, it also brings the hidden danger of overcapacity.
With the development of the global economy and changes in market demand, China's titanium dioxide industry faces many opportunities. The growing global demand for environmentally friendly and high-performance materials has provided a broad market space for the titanium dioxide industry. Chinese titanium dioxide companies can continuously improve product quality and performance through technological innovation to meet the market demand for high-end titanium dioxide products. At the same time, with the advancement of the "Belt and Road" initiative, Chinese titanium dioxide companies have more opportunities to expand overseas markets, strengthen international cooperation, and enhance international competitiveness.
However, the challenges are equally severe. Overcapacity may lead to intensified market competition, lower prices, and squeezed corporate profit margins. In addition, with increasingly stringent environmental protection requirements, titanium dioxide manufacturers need to continuously increase environmental protection investment and improve production processes to meet environmental protection standards. In terms of technological innovation, although China's titanium dioxide industry has made remarkable achievements in scale, there is still a certain gap with the international advanced level in high-end technology and core patents. Therefore, Chinese titanium dioxide companies need to increase R&D investment, cultivate innovative talents, and enhance independent innovation capabilities to meet the challenges of the future market.
In summary, China's titanium dioxide industry has achieved remarkable achievements in the global market, but to achieve sustainable development, it still needs to continue to work hard in industrial structure adjustment, technological innovation, market expansion and environmental protection. I believe that with the joint efforts of industry enterprises, China's titanium dioxide industry will continue to maintain its leading position in the future and make greater contributions to the development of the global chemical industry.