The largest five manufacturers share 64 percent of global titanium dioxide market, and China gets the lion’s share of the rest 36 percent, a recent report by Qianzhan Research Institute shows.

 

China now has more than 60 titanium dioxide manufacturers, but only five of them have a capacity of 100,000 tonnes. Low industrial concentration and wasteful duplication have led to severe over-capacity, unhealthy competition and a vicious circle in whole industry.

 

In the first half of 2013, China’s import volume of titanium dioxide is 91,500 tonnes, rising by 11.3% compared with same period last year. However, the export volume falls by 22.8%, compared with same period last year, to 175,700 tonnes. That import prices exceed export ones for long time also indicates a great rigid demand of high-end titanium dioxide products.

 

However, the majority of Chinese titanium dioxide are produced by sulfuric acid process, which have greater damage on environment and require higher sewage disposal cost than those of chlorination process.

 

Environmental protection policies are already under development to improve present situation. With the problem solved, the industrial integration will also speed up as those small manufacturers that cannot afford sewage disposal cost will find it harder to maintain operation.