In August, 2009 all TiO2 grades sold in North America are expected to see a price increase of USD 0.03 / lb where for rest of the world it would be US$ 100-150/ MT. This price increase would be in additional to price increase announced by most of these global players in May, 2009.
Similar kind of price increase effort has been noticed for all DuPont™ Ti-Pure® titanium dioxide (TiO2) grades and for all Cristal Globals Tiona® and Cristal titanium dioxide products.
Chinese TiO2 Production Capacity Expansion2009-2010
As most of the titanium dioxide pigment industry staggersfrom severely low demand, Chinese expansions are expected to double domesticcapacity to 2.7m. tpa within a year.
China, which presently produces about 1.17m tpa, has not escaped the impactof slow market demand but has reacted differently by expanding productioncapacity.
With Chinas construction and car industries returning to activity, the need for white paint is only going to become more pressing and Chinese TiO2 producers are making sure they are not going to be caught short.
One of the hubs for new Chinese TiO2 capacity is Panzhihua city in Sichuan province.
In 2008 virtually all new pigment plants were located there, all seeking to take advantage of the reserves in the province, Sichuan hosts over 90% of Chinas vanadium-titanium ore.
In the next two years, however, Shandong will emerge as a key TiO2 province, particularly Tengxian county.
Four new/ expansion projects have been identified for Sulphate process along with five Chloride process.
Around 200,000 tonnes of new sulphate TiO2 capacity is expected to come live before the end of this year. This represents an increase of around 15% of TiO2 production for China.
In terms of chloride capacity, much is dependant on when DuPont's new 200,000 tpa Dongying, Shandong facility comes live. This has been planned since 2005 and is delayed by environmental permit applications.
One suspected hold up is regarding waste disposal for the chloride plant which plans to use ilmenite feed a move which will ultimately produce more waste. The US producers plan is to use deep well injection disposal; the US chemicals company is yet to persuade the Chinese authorities of the safety of such a method.
Location of new Chinese Titanium Dioxide capacity for 2010
Image Source: https://static.google.com
Company |
Province |
New Capacity (tpa) |
Process |
Jiangxi Tianguang Chemical |
Jiangxi |
50,000 |
Sulphate |
Sichuan Lomon |
Sichuan |
120,000 |
Sulphate |
Dongjia Group |
Shaddong |
50,000 |
Sulphate |
Jinan Yuxing |
Shandong |
100,000 |
Sulphate |
Jinzhou Titanium |
Liaoning |
85,000 |
Chloride |
Henan Billions |
Henan |
100,000 |
Chloride |
Anhui Annada |
Anhui |
40,000 |
Chloride |
Xinli Nonferrous Metals |
Yunnan |
60,000 |
Chloride |
DuPont |
Shandong |
200,000 |
Chloride |
The new sulphate and chloride TiO2 capacity is
set to push the countrys output at the end of next year towards 3m. tonnes,
over double that of todays production level a truly magnificent jump.
This has raised questions of oversupply in China along with questionable feedstock availability as 2011 approaches.
DuPont's entry into China is also raising a number of concerns. Chinese product at present is of lower cost and lower quality. The presence of the worlds leading TiO2 producer in China has raised fears that many of the small to medium sulphate producers capacities under 50,000 tpa will suffer as DuPont competes more bullishly on a cost level while offering a higher quality product.
China's predicted growth both of its economy and population is set to put to rest these fears. There will still be a demand for the lower quality product both domestically, from South East Asia and, in particular, India.
References:
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- &sec=article&uinfo=<%=server.URLEncode(2062)%>" target="_blank">http://www.cristalglobal.com
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