Interpretation of the export situation of titanium dioxide

In the first half of 2020, despite the ups and downs in the domestic and foreign markets, as the largest exporter of titanium dioxide, the market finally delivered a satisfactory interim answer at the end of June. At present, the domestic titanium dioxide market is undergoing a very lively second price increase during the year, and manufacturers are gradually getting rid of the dilemma of continuous losses due to high cost pressures. The expectation of internal and external demand resonance in the market outlook is gradually strengthening. If external demand remains stable in the second half of the year , It is not difficult for China to achieve the goal of annual growth of titanium dioxide exports.

Just as we agreed to have a haircut when Erlong's head was raised in February, the total amount of titanium dioxide sent from my country to the rest of the world will also rise in March every year. Looking back at the export data, we can find that the resurgence in March of this year was not only as promised, but also that the export volume of the month increased significantly compared with the same period in previous years.

In the past ten years, the monthly export performance of titanium dioxide and the top-down changes in the curve are a testament to my country's growth as a major exporter of one million tons of titanium dioxide in the past decade.

Going back to this year, the red highlighted part is the export performance of China's titanium dioxide in the first half of 2020: the total export volume increased significantly in the first quarter; March is the peak export season for the past years, and the receiving place is negatively affected by the expected development of the epidemic. The import volume of titanium dioxide has almost doubled month-on-month; the global spread of the epidemic in mid-to-late March is obvious. The production and traffic restrictions in the receiving area in May caused the export of titanium dioxide to show a negative change in the year for the first time in the same month, with a year-on-year decrease of 24.89. %; In June, with the gradual relaxation of domestic production and traffic restrictions by major trading partners, China's titanium dioxide export volume recovered significantly, with a year-on-year decline of 7.50% as the first half of the year. What was the final result of such unstable export performance in the first half of the year? In the past ten years, the monthly export performance of titanium dioxide and the top-down changes in the curve are a testament to my country's growth as a large exporter of one million tons of titanium dioxide in the past decade.

Going back to this year, the red highlighted part is the export performance of China's titanium dioxide in the first half of 2020: the total export volume in the first quarter increased significantly; March is the peak export season for the past years, and the receiving area is negatively affected by the development of the epidemic. The import volume of titanium dioxide has nearly doubled month-on-month; the global spread of the epidemic in mid-to-late March was obvious. Production and traffic restrictions in the receiving area in May caused the export of titanium dioxide to show a negative change in the year for the first time in the same month, with a year-on-year decrease of 24.89. %; In June, with the gradual relaxation of domestic production and traffic restrictions on major trading partners, China's titanium dioxide export volume recovered significantly, with a year-on-year decline of 7.50% as the first half of the year. What was the final result of such unstable export performance in the first half of the year?

In the first half of the year, the export volume exceeded 500,000 tons and was close to 600,000 tons for the first time in ten years, a year-on-year increase of 16.92%. With the main contribution in the first quarter, in terms of total exports in the first half of the year, not only were exports not negatively affected by public health emergencies, but they also fulfilled the "task" beyond expectations.

Through the aforementioned overall situation of my country's titanium dioxide export in the first half of the year, it can be seen that the export has presented a satisfactory half-year answer. And in 6 months, what kind of exporting country structure was used to complete this answer sheet?

Among my country's total exports of 1.034 million tons of titanium dioxide in 2019, the demand from the 13 trading partners in the above figure accounted for nearly 60% of my country's total annual exports. Our top two trading partners, India and Brazil, have always had a relatively high degree of industry. In 2019, the total proportion of the two has been close to 20%. What is the contribution of these two trading partners to my country's titanium dioxide export this year?

As the largest trading partner of my country's titanium dioxide exports, it is generally natural for the industry to import my country's titanium dioxide into the Indian market in the first half of the year. Combining the aforementioned performance of the total export volume of titanium dioxide in the first half of the year, we can see that India's import trend of my country's titanium dioxide from January to June is roughly consistent with the total volume.

First, the demand in the first quarter has increased significantly compared with previous years. Second, the epidemic has spread in India since late March. Affected by restrictions on production and life, the number of titanium dioxide exported to India for two consecutive months in April and May has shown significant growth. It was not until mid-June that its domestic traffic restrictions were relaxed or lifted, and exports resumed. At the same time, combined with the feedback from several domestic titanium dioxide manufacturers that had business dealings with India at that time, at the end of the domestic price decline in mid-to-late June, external demand entered a state of recovery, and the pressure on the production side was significantly eased.

During this period, other incidents such as the conflict in the Kalwan Valley occurred that made the industry very serious. At that time, the industry might worry about whether the export channel will become more blocked, or whether tariffs will be imposed on related products in the future, which will affect the domestic market. Wait, but looking at it now, these concerns have not been verified. In the first half of the year, India's exports basically returned to the same period.

It should be noted that although some restrictions have been lifted, the domestic epidemic in India is still not under effective control. On August 5, the number of newly confirmed cases in a single day exceeded 100,000, that is, the uncertainty of the external environment still exists. Related analysts believe that, given its huge population and fragile economy, India’s road to fight the epidemic will not be smooth before vaccines or specific drugs appear.

In terms of trends, Brazil's imports of titanium dioxide from my country in the first half of the year were the same. The difference is that it is easy to observe from the figure that China’s export volume of titanium dioxide to Brazil in June is still at a low level in the past four years. The negative impact of public health emergencies on Brazil’s domestic production and life continues, and the market outlook is relatively uncertain. more obvious.

In the first half of 2020, despite the ups and downs in the domestic and foreign markets, as the largest exporter of titanium dioxide, the market finally delivered a satisfactory interim answer 6 months later. At present, the domestic titanium dioxide market is undergoing a very lively second price increase during the year, and manufacturers are gradually getting rid of the dilemma of continuous losses due to high cost pressures. The expectation of demand resonance inside and outside the market is gradually strengthening, and the market can feel the rebound. Let the industry invest more actively and optimistically in the production and trade of titanium dioxide. If external demand remains stable in the second half of the year, it will not be difficult for my country to achieve the goal of annual growth in titanium dioxide exports.