At present, high-grade titanium dioxide has become a critical raw material across multiple industries, including coatings, plastics, and inks. Both foreign countries and domestic sectors are showing growing interest in China’s titanium dioxide market. However, the industry is facing significant challenges. Due to excessive and unregulated investments in recent years, the production of low-tech products has surged, while the expansion of advanced production capacity has not kept pace with market demand. As a result, high-end titanium dioxide is still heavily imported, highlighting the urgent need for restructuring and technological upgrading within China's titanium dioxide sector.
The production of titanium dioxide primarily relies on two methods: the sulfuric acid process and the chlorination process. While most Chinese producers use the sulfuric acid method, which is outdated and inefficient, Panzhihua Iron and Steel Group's Jinzhou Titanium Industry Co., Ltd. has adopted the more advanced chlorination method. This technological gap means that China continues to rely on imports for high-quality products, despite its rapid industry growth.
In 2006, China produced approximately 860,000 tons of titanium dioxide, marking a 23% increase from the previous year. By 2007, production exceeded 1 million tons. Moreover, over 20 new projects are currently under construction, design, or planning, with 14 of them being entirely new ventures. These projects collectively have a total capacity of over 1.28 million tons per year. If all these projects are completed as planned, China could become the world’s largest producer of titanium dioxide by 2010.
Despite this growth, the industry remains fragmented, with over 70 manufacturers, many of which are small and medium-sized enterprises. This lack of concentration leads to inefficient resource allocation and poor geographical distribution. Rising costs have weakened the international competitiveness of domestically produced titanium dioxide, forcing many companies to focus on the domestic market. However, limited domestic demand has led to oversupply and intense competition, further squeezing profit margins.
Given these challenges, the industry is expected to undergo a major reshuffling. Companies with strong financial backing, advanced technology, and a solid market presence will likely survive, while those relying on low-end products and price wars may struggle. Industry experts emphasize that four key contradictions must be addressed: the mismatch between rapid development and resource scarcity, the conflict between environmental regulations and waste management inefficiencies, the imbalance in product structure, and the gap between technological progress and lack of innovation.
To resolve these issues, experts recommend a sustainable development strategy that emphasizes large-scale operations, resource efficiency, high-quality products, and integrated upstream-downstream operations. Mergers and acquisitions can help consolidate the industry and enhance overall competitiveness. Additionally, developing chlorination processes and securing stable raw material supplies are essential for improving quality and diversification. Companies must also focus on innovation and market-driven product development to shift toward higher-value, specialized products. Only through such comprehensive reforms can China’s titanium dioxide industry overcome its current challenges and achieve long-term stability and growth.
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Jiangsu Kaihuida New Material Technology Co., Ltd , https://www.khdchemical.com