The Survey of Titanium Dioxide in China

China is currently the largest titanium dioxide supplier in the world, with its capacity exceeding the US in 2008 stimulated by growing domestic demand. Apart from the rapid capacity expansion, Chinese titanium dioxide industry is experiencing the following changes in currently sluggish market.

Raw materials' price decline Raw materials prices have slumped in 2009. For instance, sulfuric acid price has dived to USD58/t in Mar. 2009 from USD219/t in Jul. 2008. Will it stimulate China's TiO2 production and increase manufacturers' profits? What measures are Chinese manufacturers taking to enlarge profit margin?

Development of chloride process Pangang Group Jinzhou Titanium Industry Co., Ltd., the only Chinese producer adopting chloride process till now, has completed its chloride process capacity expansion in Mar. 2009, and aims to further expand in the future. What's the development trend of China's chloride process in the following years? And why there hasn’t been any foreign manufacturer investing in chloride process in China till now, by joint venture or singe proprietorship? Will DuPont establish its new plant smoothly in the near future?

Tightening titanium ore supply Vietnam, one of the most important origins of China's titanium ore, once declared to ban ore export in Jan. 2009. Facing high import dependence rate, how will Chinese producers ensure the sufficient raw material supply in the future?

Rising waste treatment cost In titanium dioxide industry, waste treatment cost constitutes relatively large portion of production cost. With the government's increasing attention to environmental protection, how will Chinese manufacturers deal with the rising cost?

TiO2 consumption change Though greatly impacted by the financial crisis, China's TiO2 demand broke a new record in 2008. However, Chinese end users have different consumption habits and usually replace TiO2 by other substitutes. What are the consumption habits and quality requirements of Chinese end users? Will the vitalising plans and other supporting measures benefit TiO2 industry?

This report describes the current dynamics of China's titanium dioxide industry, covering production and consumption, import/export analysis and benchmarking of key manufacturers. Based on the in-depth analysis, the report provide insightful qualitative and quantitative forecast to the next five years, and discloses the key opportunities for foreign suppliers and manufacturers aiming at Chinese and global TiO2 market.

In addition to the above issues, you can find detailed analysis for the following questions:
1. What are the capacity/output of China's top 30 manufacturers in Mar. 2009, and their product types, ore supply and inventories?
2. What are the characteristics of capacity distribution and concentration in China?
3. What's the profit situation and competitive advantages of benchmarking manufacturers?
4. What's the influence of highlighted cases, including amortisation, DuPont's entry, ore reserve policies and waste treatment standard, on titanium dioxide industry?

Contents

Code Content

I PRODUCTION

- Overview
- Capacity expansion, output, distribution
- Concentration in west and central regions
- Sulphate process vs. chloride process
- Feedstock situation
- Price

II BENCHMARKING

- Overview of manufacturers
- Reasons for choosing these manufacturers
- Jinzhou Titanium
  Strength and weakness
    Production
    Distribution network
    Waste treatment
    Feedstock supply
    Technology innovation
    Research investment
    Cost structure
- Panyu Titanium
- Jinan Yuxing
- Shanghai Jianghu
    Reason for presenting this company
    Strength
    Production
    Distribution
    Product standard
    Waste treatment cost
    How to decrease cost by coating

III HIGHLIGHTED CASE

1 Amortisation
2 DuPont's entry(2005-now)
3 No joint venture of chloride process
4 Policy

IV I/E ANALYSIS

- Price trend
- Import distribution
- Export destination
- Manufacturers' export situation

V CONSUMPTION

- Mass balance
- Market share
- Quality requirement
- Consumption habits
- Development trend

VI OPPORTUNITY

- Raw material production
- Enterprise merger
- Product structure optimisation & quality improvement

VII FORECAST TO 2013

- Drivers
- Barriers
- Qualitative forecast
- Quantitative forecast

LIST OF TABLES

Table I-1 Top 30 TiO2 manufacturers by capacity, Mar. 2009
Table I-2 Dispersed TiO2 capacity by region, 2009
Table I-3 Capacity of top10 TiO2 producers, Mar. 2009
Table I-4 New plants under construction, Mar. 2009
Table I-5 Import origins of titanium ore in China by share, 2006-2008
Table I-6 List of nanometer titanium dioxide manufacturer, Mar. 2009
Table I-7 Chemical fiber grade and electronic titanium dioxide manufacturer, Mar. 2009
Table II-1 Characteristics of the four benchmarking companies
Table II-2 Production cost of Jinzhou Titanium, Mar. 2009
Table II-3 Management cost of Jinzhou Titanium, Mar. 2009
Table II-4 Profit structure of Jinzhou Titanium, Mar. 2009
Table II-5 Production cost of Panyu Titanium, Mar. 2009
Table II-6 Management cost of Panyu Titanium, Mar. 2009
Table II-7 Profit structure of Panyu Titanium, Mar. 2009
Table II-8 Production cost of Jinan Yuxing, Mar. 2009
Table II-9 Management cost of Jinan Yuxing, Mar. 2009
Table II-10 Profit structure of Jinan Yuxing, Mar. 2009
Table II-11 Comparison of additional cost and profit between anatase and rutile TiO2
Table II-12 Profit comparison among the benchmarking enterprises, Mar. 2009
Table IV-1 TiO2 import distribution by end use sector, 2008 (unit: tonne)
Table IV-2 TiO2 import situation by end use sector, 2008
Table IV-3 China's TiO2 export destinations, 2008 (unit: quantity: kg; price: USD/kg)
Table IV-4 Export situation of main TiO2 manufacturers, 2008 (unit: tonne)
Table V-1 TiO2 apparent consumption evolution, 2005-2008, tonne
Table V-2 Output evolution of coating products, 2005-2008, tonne
Table V-3 TiO2 consumption in coating, 2005~2008, tonne
Table V-4 Main end users in coating industry, 2008
Table V-5 Output evolution of plastic products, 2005-2008, '000 tonnes
Table V-6 TiO2 consumption in plastic, 2005~2008, tonne
Table V-7 Main end users in plastic industry, 2008
Table V-8 Output evolution of paper products, 2005-2008, tonne
Table V-9 TiO2 consumption in papermaking, 2005-2008, tonne
Table V-10 Main end users in papermaking industry, 2008
Table V-11 Output evolution of enamel, 2005-2008, tonne
Table V-12 TiO2 consumption in enamel, 2005-2008, tonne
Table V-13 Main end users in enamel industry, 2008
Table V-14 Output evolution of welding rod, 2005-2008, tonne
Table V-15 TiO2 consumption in welding rod, 2005-2008, tonne
Table V-16 Main end users in welding rod industry, 2008
Table V-17 Consumption of synthetic rubber, 2005-2008, tonne
Table V-18 TiO2 consumption in synthetic rubber, 2005-2008, tonne
Table V-19 Main end users in rubber industry, 2008
Table V-20 Output evolution of chemical fiber, 2005-2008, tonne
Table V-21 TiO2 consumption in chemical fiber, 2005-2008, tonne
Table V-22 Main end users in chemical fiber industry, 2008
Table V-23 Output evolution of ink, 2005-2008, tonne
Table V-24 TiO2 consumption in ink, 2005-2008, tonne
Table V-25 ain end users in ink industry, 2008
Table VI-1 Unit capacity comparison of domestic and global TiO2 projects, 2008, t/a
Table VII-1 China's titanium ore import dependence rate, 2005~2008
Table VII-2 Forecast on China's demand for TiO2, 2009~2013, tonne
Table VII-3 Forecast on China's TiO2 output, 2009~2013, tonne

LIST OF TABLES

Figure I-1 Expanding capacity and decreasing operating rate
Figure I-2 Capacity structure of TiO2 in China, 2005-2009, t/a
Figure I-3 Geographic distribution of TiO2 capacity in China, Mar. 2009
Figure I-4 Trend of capacity concentration to Central and West China
Figure I-5 Unreasonable product structure, by process
Figure I-6 China's self-sufficiency rate of titanium ore, 2005-2008
Figure I-7 Capacity share of titanium ore by region, 2008
Figure I-8 Price decline of titanium dioxide and sulfuric acid, Jul. 2008 and Mar.2009
Figure I-9 Capacity change of specialty TiO2, 2003-2009, t/a
Figure IV-1 Import/export price of TiO2, 2008
Figure VI-1 China's import dependence rate of titanium ore, 2005~2008
Figure VI-2 Domestic titanium ore supply by origin, 2008
Figure VII-1 China's GDP evolution, 2001~2008
Figure VII-2 Chinese people's income evolution, 2003~2008
Figure VII-3 Chinese international trade evolution, 2003~2008

COMPANIES MENTIONED

Jilin Changchun Dacheng Industrial Group Company Ltd. Roquette China Co., Ltd. Nikken Fine Chemical Co., Ltd. Towa Chemical Industry Co., Ltd. Guangxi Khalista (Liuzhou) Chemical Industries Ltd. Roquette Korea Ltd. PT. Sorini Agro Asia Corporation TBK PT. Sorini Towa Berlian Corporindo