1. Export growth to be the driving factor for China's TiO2 consumption in 2014
Tag: TiO2, Price, Import volume, Export volume, Trend, Production, Coatings, Titanium
feedstock
Summary: The domestic demand for TiO2 may remain soft in 2014. However, the export
volume is expected to increase significantly, making export growth the major driving factor for
the consumption of Chinese-produced TiO2 in 2014.
The overseas market became a significant part of the domestic TiO2 industry since 2010 due to
the permanent shut down of some European TiO2 factories, causing a massive supply rift for
the global TiO2 industry and stimulating domestic TiO2 exports. During 2007–2009, the export
volume accounted for 13.84%, 9.50% and 9.89% of the domestic TiO2 output of the year.
However, the proportion soared to 18.01% and 21.97% in 2010 and 2011. 2013 was a
disappointing year for China TiO2 industry as the export volume kept flat while the domestic
consumption was sluggish. The 2013 full year's export volume is expected to be about 440,000
tonnes, a lackluster YoY growth rate of approximately 2.70%, according to Titanium China
Monthly Report issued by CCM in January.
Looking ahead, the domestic TiO2 consumption will continue to keep soft in 2014, which means
that the export growth will be the main driving factor for 2014 China TiO2 consumption. Afterall,
the export volume kept flat in 2013 and is expected to increase significantly in 2014. The
International Monetary Fund predicts that the 2014 global GDP growth will reach 3.6%, higher
than the 2.9% growth rate in 2013.
The steady and consolidated recovery of export destinations also supports the expectation that
exports will drive growth for the consumption of Chinese-produced TiO2.
Asia-Pacific is the biggest export destination for Chinese TiO2, with its consumption accounts
for about 44% of the total export volume. Apart from India, other Asian countries' latest HSBC
PMI recorded rises in the output component, indicating that the regional manufacturing sectors
are recovering steadily. The loose monetary policy and the strong external demand will
consolidate the recovery. The Nikkei Stock Average rose about 57% in 2013, the biggest rise in
41 years. Confidence is increasing and investors are becoming more adventurous. All these
signals favour the Asian economy, and consequentially will benefit China's TiO2 exports to
Asia-Pacific.
For the other export destinations, industrialisation in South America, which accounts for 16% of
China's total TiO2 export volume, will support its economic growth sustainably. China's TiO2
export volume to South America has been increasing. Europe's economy seems to have turned
the corner. If the export volume to Europe returns to the same level in 2011, China's TiO2 export
volume will increase by about 40,000 tonnes. For years, the export volume to the Middle East
has been around 60,000 tonnes, and this figure is expected to sustain in 2014. At last,
benefiting from the recovery of the US, the export volume to North America is expected to grow.

2. Brazil, the US and India are the biggest three importers of China TiO2, with their combined
volume accounting for 30% of China's total TiO2 export volume. The HSBC PMI in Brazil
returned to 50.5 in Dec. from 49.7 in Nov. Brazil Central Bank predicted that Brazil's economic
growth rate in 2014 will be around 1.95%. There are still a few headwinds and uncertainty for
Brazil economy. Conditions in India are a little disappointing as there is weak domestic demand,
but orders from abroad picked up according to the HSBC's report. Good news came from the
US with manufacturing activity growing in Dec. at its fastest pace in 11 months, and the rate of
job growth was the strongest since March, according to Markit's Purchasing Managers' Index.
The world's biggest economy will help to promote a recovery in the global economy in 2014,
which will promote China's TiO2 exports.
Table of Contents of Titanium China Monthly Report 1401:
TiO2 import volume soared while export volume increased moderately in Nov.
Titanium feedstock imports increased while domestic output fell in Nov.
Domestic TiO2 market becomes quieter before the Spring Festival
Export growth to be the driving factor for China's TiO2 consumption in 2014
China produced around 1.90 million tonnes of TiO2 in 2013
It's wise for Shandong Dongjia to halt its IPO application
SRL attains massive growth in production but suffers massive drop in profit in 2013
Comparison of TiO2 properties indicators and requirements of end users
Increasing domestic auto output and lower raw material cost increase KNT's profit
Aroused public concern over pipeline safety to bring opportunities for anti-corrosion coating
th
Titanium Dioxide China Monthly Report, issued by CCM on 25 , is mainly comprised of five
columns of news and reports related to TiO2 market, including “Supply & Demand”, “Company
Dynamics”, “Upstream”, “Downstream” and “Price Update”. You can find out more business
opportunities through the latest and helpful information provided in the report.
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