China's Titanium Dioxide Exports will Rise Steadily
On February 15, Chemours held its 2022 annual financial presentation, where CEO Mr. Mark Newman expressed his concern about the downstream demand market for titanium dioxide, stating that the company's titanium dioxide sales volume in 2023 is expected to be lower than the 2022 level. On the basis of this forecast, Chemours's 2023 EBITDA and EPS are both lower than 2022 levels.
The pessimistic forecast for titanium dioxide 2023 is also fermenting in the China region. Although most Chinese titanium dioxide manufacturers announced price increase measures around the Chinese New Year, the current prices of three types of mainstream titanium dioxide, anatase, rutile and chlorinated rutile, did not fluctuate significantly and the transaction prices remained stable, as shown by the market transaction conditions.
New titanium dioxide capacity will be added this year in Yunnan, Hunan, Gansu, Guizhou, Liaoning, Hubei and Inner Mongolia, with approximately 600,000 tons of new capacity expected to be released throughout the year. According to the capacity plan, there will be about 600,000 tons of expansion and new projects currently after 2024 is expected. In the 2023-2024 cycle, China's local titanium dioxide supply and demand balance will be broken, and the supply exceeds demand situation will be more obvious in the next two years.
In the face of supply exceeds demand stage, titanium dioxide enterprises will continue to accelerate the pace of exports in this cycle, and it is expected that China's titanium dioxide exports in 2023 will maintain a steady growth trend.
