Focus on Development of Titanium Dioxide Sector


Rebound from the valley in 2009  

Amid impacts from the global financial crisis, in the first quarter of 2009, domestic and oversea titanium dioxide markets experienced sustained slackness, causing titanium dioxide makers to build up a high inventory and the product price to stay low. Starting the second quarter of 2009, the RMB4 000 billion investment for domestic demand expansion and the moderately lenient monetary policy implemented by the Chinese Government stimulated a rapid recovery of the home building sector and in turn promoted the recovery of the coatings/decoration sector and the plastic door/window sector, and finally the domestic demand for titanium dioxide increased remarkably. The market price started to go up. The operating rate of titanium dioxide producers picked up and reached more than 80% on average at the end of 2009. The actual ex-factory price of the R258 rutile titanium dioxide made by Chongqing Titanium Industry Co., Ltd. of Pangang Group increased from RMB12 800 per ton in early January 2009 to RMB14 700 per ton at the end of 2009.
   China exported 103 600 tons of titanium dioxide in 2009, an increase of 39% over the previous year. There were two reasons contributed to the export growth. One was that due to impacts of the global financial crisis the export amount was pretty low in 2008. The other was that the price reduction of raw materials in 2009 led to a low cost of titanium dioxide made in China, resulting in a strong competitive edge in the international market. China imported 245 000 tons of titanium dioxide in 2009, a drop of 2.27% from the previous year. The main reason for the import drop was that with impacts from the global financial crisis the Chinese consumers used domestic products to partially replace imports in order to reduce the production cost. Moreover, through domestic producers' constant technical renovations in recent years, the product quality witnessed a remarkable upgrading. As the recession in the second half of 2008 was almost equal to the recession in the first half of 2009, there was no much difference between 2008 and 2009 when comparing the whole-year import amount.

Trends of high end and large scale

China's titanium dioxide sector has constantly expanded production scale and readjusted the industrial structure in recent years. As of the end of 2009, China is capable of producing more than 1.50 million tons of titanium dioxide per year already. Among the new capacity added in 2009, rutile varieties accounted for 78.7% and anatase varieties accounted for 21.3%. It can therefore be seen that China's titanium dioxide sector is shifting from production of the low-end anatase varieties to high-end rutile varieties.
   The brand strategy implemented by key enterprises has received remarkable success. Take rutile titanium dioxide for instance. The SR-2400 (specialty variety for plastics) and SR-2377 (high-grade general purpose) of Dongjia Group, the LR-971 (specialty for high polyvinyl chloride coatings) and LR-108 (specialty for masterbatches) of Sichuan Lomon Corporation, the BLR-699 (highly weather-resistant) and BLR-621 (specialty for coatings) of Henan Billions Chemicals Co., Ltd., R-248 (specialty for plastics), R-258 (specialty for coatings) and R-298 (high-grade general-purpose) of Chongqing Titanium Industry Co., Ltd. of Pangang Group, the ZR-940+ (specialty for coatings) and ZR-965 (special for coatings) of Jiangsu Zhentai Chemical Co., Ltd. have all gained high reputation. China has 19 rutile titanium dioxide producers by the end of 2009, together producing 50 varieties.
   Experts from the Titanium Dioxide Branch of China Production Promotion Center reminded domestic titanium dioxide producers to pay attention to the development trend in the world. With the stability, maturing and improvement of production technologies, the number of titanium dioxide varieties in the world has been reduced drastically in the past 20 years and a shift is being made to general-purpose varieties (such as the R-902 of DuPont and the R-930 of ISK) and new-generation functional varieties (such as the R-706 of DuPont and R-980 of ISK). The international market outside China has only around 100 titanium dioxide varieties including specialty varieties needed in some sectors. Except for chemical fiber matting, thin layer ink, partial plastics, water-based coatings or high PVC systems and indoor/outdoor uses, the titanium dioxide varieties used in other applications basically have common properties.
   "If titanium dioxide producers want to enhance competitiveness, the scale plus refined product is the key for them," said an expert from Chongqing Titanium Industry Co., Ltd. of Pangang Group. Pangang Group, by its advanced sulfuric acid based titanium dioxide process, has developed and produced PTA-120, PTA-100, R-298, R-258, R-248, R-501 and R-510 series products. The company will have a total capacity of 300 000 t/a titanium dioxide using the sulfuric acid process and 370 000 t/a titanium dioxide using the chlorination process in the next 5-10 years. A unit of 600 000 t/a titanium slag soluble in acid solution will also be constructed during that period. Pangang Group also has plans to merge or regroup other relevant titanium dioxide producers to accelerate the expansion of its titanium dioxide production scale. A new round of integration in the titanium dioxide sector has already begun in China. Pangang Group reported that it will rely on its advantages in resources, capital and policy and aggressively launch integration activities prior to other competitors. Other domestic enterprises will also promote this round of integration. The capacity concentration in the titanium dioxide sector will be further enhanced in the future.

Initial effect of cyclic economy

With the greater strictness of environmental protection laws and regulations and the intensified supervision by environmental protection administrative departments, China's titanium dioxide sector has achieved remarkable progress in environmental protection and clean production. Major titanium dioxide producers have constructed waste gas treatment and waste liquid absorption/neutralization units. Most of spent acids with a concentration of around 20% are recycled or reused in other comprehensive applications after concentration. Concentration equipment and processes are already well developed.
   According to experts from Jiangxi Tianguang Chemical Co., Ltd., the company has spent over RMB18.0 million in renovation to systems for the treatment of sulfuric acid sewage and titanium dioxide sewage, the diversion of clean water and sewage and the recycle of water. Emissions can reach the national standard and resources have been comprehensively utilized. The company has also invested RMB11.34 million in optimization and energy conservation renovation to energy systems including the utilization of sulfuric acid waste heat. The energy saved a year is equivalent to 15 000 tons of standard coal. Furthermore, the company has gained financial support from the energy conservation and emission reduction specific fund of the government.
   According to the general manager of Lechang Yinxing Chemical Co., Ltd., the company does not use the spent acid concentration process. It rather uses byproduct ferrous sulfate and acid mud generated in the titanium dioxide production line to produce high-effect composite water cleaner and ferrous sulfate monohydrate. Zero emission of slag in the titanium dioxide production is achieved, while the company's sales revenue is therefore increased by RMB25.2 million a year.

Higher proportion of titanium dioxide using the chlorination process

Compared with the constant capacity expansion of titaniu