The production capacity of chlorinated titanium dioxide is gradually increasing, and the concentration of the titanium dioxide market will be increased in the future

The production process of titanium dioxide using sulfuric acid method is relatively long, and there are many waste and by-products, which cause significant environmental pollution. In recent years, with increasingly strict environmental supervision and breakthroughs in related technologies, the production capacity of titanium dioxide using sulfuric acid method in China has gradually declined, while the production capacity of titanium dioxide using chloride method is gradually being released.

Titanium dioxide, also known as titanium dioxide (TiO2), is an important white inorganic pigment. Titanium dioxide can be divided into pigment grade titanium dioxide and non pigment grade titanium dioxide, among which pigment grade titanium dioxide can be further divided into two types: rutile type titanium dioxide (Type A) and rutile type titanium dioxide (Type R). Titanium dioxide has excellent physical and chemical properties, optical properties, and is considered one of the best performing white pigments in the world. It is widely used in fields such as coatings, rubber, plastics, chemical fibers, inks, papermaking, and cosmetics.

According to the "2021-2025 Feasibility Study Report on China's Titanium Dioxide Market" released by the Xinsijie Industry Research Center, China is one of the major producers of titanium dioxide worldwide. In 2020, the comprehensive production of various types of titanium dioxide and related products in China reached over 3.5 million tons. From the perspective of segmented markets, the market share of rutile type titanium dioxide is the largest, reaching over 80%, followed by rutile type titanium dioxide. As of the end of 2020, the number of titanium dioxide production enterprises in China has exceeded 40, mainly concentrated in regions such as Shandong, Sichuan, and Henan.

From the consumer side, since 2015, with the release of domestic market demand, the apparent consumption of titanium dioxide in China has shown a fluctuating growth trend, approaching 2.5 million tons in 2020. From the perspective of downstream consumption structure, coatings are the most widely used field in China's titanium dioxide industry, accounting for over 60% of consumption, followed by the plastic industry with a consumption proportion of about 17%, and the paper industry with a consumption proportion of nearly 11%. Influenced by the COVID-19, the titanium dioxide market price fluctuated significantly in 2020, showing a "U" trend as a whole.

The production process of titanium dioxide includes two processes: sulfuric acid method and chloride method. Currently, the sulfuric acid method is still the main production process of titanium dioxide worldwide, and the sulfuric acid method accounts for more than 80% of the production capacity of titanium dioxide in China. The production process of titanium dioxide using sulfuric acid method is relatively long, and there are many waste and by-products, which cause significant environmental pollution. In recent years, with increasingly strict environmental supervision and breakthroughs in related technologies, the production capacity of titanium dioxide using sulfuric acid method in China has gradually declined, while the production capacity of titanium dioxide using chloride method is gradually being released. With the continuous deepening of supply side structural reform and intensified market competition, the competition in the titanium dioxide market will further increase in the future. Top enterprises are expected to gain more market share through technological and production advantages.

Industry analysts from Xinsijie stated that as an important white inorganic pigment, titanium dioxide has a wide range of applications. With the continuous release of downstream market demand, the scale of the titanium dioxide industry will continue to expand. China is a major producer of titanium dioxide worldwide. With increasingly strict environmental regulations, the production capacity of chlorinated titanium dioxide will gradually increase. At the same time, with some substandard enterprises withdrawing from the market, the concentration of China's titanium dioxide market will further increase in the future.