The trend of China's Titanium Dioxide import volume increasing first and then decreasing from 2019 to 2023. Since the imported titanium dioxide is mainly high-end chlorination products that cannot be replaced by domestic products, the import volume in previous years was relatively stable, and the import dependence was low. The import sources were mainly concentrated in Taiwan, China, Mexico, Australia, the United States, and Japan. Affected by public health events from 2019 to 2020, downstream demand decreased and import volume decreased accordingly; With the global economic recovery, the import volume of titanium dioxide increased to 191900 tons in 2021, the highest point in nearly five years; In 2022, the demand in the terminal industry was weak, and the import volume decreased slightly. In 2022, the import volume was only 123100 tons, a year-on-year decrease of 35.85%, accounting for only about 3% of the total national production; The import volume in 2023 has significantly decreased, with an expected import volume of around 80000 tons, a year-on-year decrease of 35%. Domestic demand remains weak, and in recent years, domestic titanium dioxide companies Longbai, Tianyuan, and CITIC have continuously increased their chloride production capacity. In addition, domestic chloride production technology has gradually improved, and titanium dioxide manufacturers are expanding their production capacity, gradually achieving domestic substitution, and the dependence on imports is gradually decreasing.
The export volume of titanium dioxide from China has been increasing year by year from 2019 to 2023, with a current export dependence rate of 41%. In 2022, the export volume was 1.4058 million tons, an increase of 7.17% year-on-year, which is the highest point in nearly 5 years. It is expected that the export volume will reach 1.62 million tons in 2023, which may reach a new high. With the renovation and expansion of domestic titanium dioxide, the growth rate of titanium dioxide production in China has long been higher than the growth rate of apparent consumer demand. In order to alleviate this problem, titanium dioxide production enterprises are actively expanding overseas markets. With the increase of production capacity, the domestic titanium dioxide industry has continuously improved its position in the international market. China's titanium dioxide production capacity accounts for more than 50% of the global production capacity, making it the world's largest producer of titanium dioxide. Domestic sulfuric acid titanium dioxide has a price advantage in the international market, and the depreciation of the RMB is beneficial to the export market. The supply is stable, the quality is excellent, and the market share is gradually increasing. In 2023, international company Venator shut down two factories in Italy and Germany, and then declared bankruptcy protection. In August, Chemurs announced the closure of its Guanyin titanium dioxide factory in Taiwan. The reduction of global titanium dioxide production capacity is more favorable for China's titanium dioxide export market.
