Supply and Demand Moved Down in the CPL Market

Introduction: In Q1, 2018, the operating rate continued being low. The overall operating rate was around 60%, down greatly year on year. However, the export volume in Q1, 2018 boomed while the import volume moved down. These changed showed the tepid demand in the Chinese market.  

Though Chinese titanium dioxide producers raised prices since 2018, the overall market prices were largely stable. Some negotiation prices inched up. The price trend in Q1, 2018 was quite different from the increasing trends in 2016 and 2017.

Recently, it was heard that one large-sized producer didn’t plan to raise the sales prices in the short term, which reflected the slow demand in the market.   

The demand for titanium dioxide was thin. Operating rates and the import and export volume also reflected the thin demand.

Seen from the above chart, the overall operating rate was low in Q1, 2018. In Q1, 2017, the monthly operating rate was over 70%. However, in Q1, 2018, the operating rate was less than 60%. The production was low, but the prices didn’t boom. Mild declines in the market prices reflected the low demand.   

Seen from the above chart, the export volume of Chinese titanium dioxide in Q1, 2018  increased greatly year on year. The total export volume in Q1, 2017 was 180,215mt. The export volume in January, February and March was respectively 59,318mt, 52,148mt and 68,749mt. In Q1, 2018, the export volume reached 242,888mt, increasing 34.78% year on year. Export volume in the first three months was 69,103mt, 70,146mt and 103,638mt respectively, up 16.5%, 34.51% and 50.75% respectively.

As for the import volume, China imported less titanium dioxide in Q1, 2018 from Q1, 2017. The total import volume in Q1, 2017 was 54,142mt and the volume in Q1, 2018 was 45,788mt.

The operating rate was low and the production was limited. The export volume increased greatly in Q1, 2018, which showed the tepid demand for titanium dioxide.