TiO2 China Monthly Report 1104

• Publication date: April 2011

The first quarter of 2011 witnessed 9.7% GDP growth and 5.0% CPI increase in China. Owing to the persistent inflation, the prices of main energy and raw materials soared in these months. Cost increase makes producers transfer their operating pressure to downstream market, causing even great difficulties. As for TiO2 downstream market, coating industry set up a wave of price rise and worked on cost reduction. Global economy recovery progress ha...

The first quarter of 2011 witnessed 9.7% GDP growth and 5.0% CPI increase in China. Owing to the persistent inflation, the prices of main energy and raw materials soared in these months. Cost increase makes producers transfer their operating pressure to downstream market, causing even great difficulties. As for TiO2 downstream market, coating industry set up a wave of price rise and worked on cost reduction.
Global economy recovery progress has been impacted by the unrest in Middle East and North Africa, Tsunami and earthquake in Japan. For example, automobiles' decreased production in Japan lead to weak demand of coatings industry.
For TiO2 producers, short supply of titanium feedstock still bottlenecks their production, resulting in TiO2 price hike in April 2011.
China's TiO2 producers enjoyed good profit margin, due to price increase and strong demand. In Q1 2011, Panzhihua's TiO2 export value reached USD1,3 billion, setting a record in its history; 98% of them is rutile TiO2, which was exported to Europe, America and other areas. Thanks to strong demand of international market, China's TiO2 export grows fast, causing TiO2 prices to soar. Meanwhile, TiO2 industry is upgraded by adjusting product structure and adopting new techniques, consequently the type of exported TiO2 gradually shifts from anatase to rutile.

Headlines
China's TiO2 import and export both see volume downturn with continuous rising prices in Feb. 2011.
It needs time to verify whether the Strategic Innovation Alliance of TiO2 Industry Technology will be effective. 
Anhui Annada sees strong gain in Q1 2011.
Titanium feedstock is in tight supply with soaring prices.
Facing rising cost, leading coating companies still announce strongh profit growth in Q1 2011.
DCM announces new technology adopting less TiO2.
TiO2 price rising exceeds expectations in recent two months.

Paint And Coating Industry in China

China's TiO2 international trade analysis in Feb. 2011

Pangang Group produces 127,400 tonnes titanium concentrate ore
Titanium feedstock: retreated import volume with soaring price in Feb.
Rio Tinto reports 12% decrease in titanium feedstock output in Q1 2011
Iluka to reduce titanium feedstock output in 2011

Will Technology Alliance drive TiO2 industry development?
Pinggui PGMA produces 2,216 tonnes TiO2 in March
Anhui Annada sees strong gain in Q1 2011
CCM to hold 2nd TiO2 workshop
Chongqing Titanium aims to produce 10,000t R-298
Jiangxi Tikon to launch rutile TiO2 production line
Huntsman Pigment expects higher margins

Price update in April 2011
TiO2 price rising exceeds expectations
Cristal announces TiO2 price hikes in Europe and Latin Ameraica

Leading coating companies report net income record of Q1 2011
Shandong Qifeng's net profit decreases by 61.3% in Q1 2011
DCM announces new technology with less TiO2
Yip's Chemical takes actions to offset cost pressure in coating business

Companies Mentioned
Pangang Group, Chongqing Titanium, Pinggui PGMA, Jiangxi Tikon, Anhui Annada