Tinox Chemie GmbH

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2020 TIO2 MARKET REVIEW& 2021 OUTLOOK
2020.11.26

2. 2020 Chinese TiO2 Price Movements
1500
1700
1900
2100
2300
2500
2700
JAN FEB Mar Apr May Jun Jul Aug Sep Oct Nov Dec
USD
TiO2 Price Index (FOB China)
SP Rutile SP Anatase
• stable to strong, supported by the stock-up before Chinese Spring Festival,
price was seen a mild increase.
• Dramatically decrease due to the COVID-19 outbreak and spread worldwide.
Lockdowns and pessimistic market sentiment cracked down TiO2 .
• Price rebounded as China was restored from Pandemic. Demand started to
recover.
• Uptrend continues, driven by feedstock surging and tight availability
 Q1
 Q2
 Q3
 Q4

3. 1~10 2020 Chinese TiO2 Statistics
 Production
 2.83 million tons in the first 10 months.
 248K tons increase than same period of
2019
 9.57% growth Y.O.Y
 Review
I. Higher operating rate of the facilities.
II. New capacity release
III. CP TiO2 production ramp-up
IV. Estimated to reach 3.4 million tons
historical high level.
2600
2800
3060 3100 3150 3200
3400
3800
1890
2155
2435 2320
2600
2870 2950
3181
0
500
1000
1500
2000
2500
3000
3500
4000
2012 2013 2014 2015 2016 2017 2018 2019
TiO2 Capaicty and Production
Nameplate Capacity (ktpa) Actual Production (1000mt)

4. 1~10 2020 Chinese TiO2 Statistics
 China Domestic Demand
 Correlated to Macro Economy Growth
 TiO2 consumption growth speed-down
 Real estate development investment recovers in
comparison with 2019.
 Automobile sales continue slipping, CP TiO2
import shows sluggish increase.
 Coating production and export keep growing.
 Plastics industry steady increase.
 TiO2 demand is supposed to maintain a growth
momentum in 2020. 1.8
1.9
2
2.1
2.2
2.3
2.4
2014 2015 2016 2017 2018 2019
China TIO2 Consumption
China TIO2 Consumption （million tons）

5.  China leads major economies in post-Covid recovery
Quarterly GDP Growth Rate
According to the statistics
data of TiO2 production,
consumption, exportation,
we are yet to see any
significate negative
impact on Chinese TiO2
industry in the Pandemic
time.

6. 2020 Chinese TiO2 Statistics
 Export
 Jan.~ Oct export 999,776 MT
 21.81% increase Y.O.Y
 Review
I. TiO2 Export reports a robust growth, stronger than 2019.
II. India it still the biggest buyer of Chinese TiO2, Brazil and South Korea follow
2nd and 3rd
III. Export to Europe increases by c.a. 8%
IV. Surplus volume due to the USA-China Trade War is diluted by the growth
from other markets.
 Import
 Jan.~ Oct import 135,662 MT
 3.08% increase Y.O.Y

7. Asia
38%
Europe
21%
ME
19%
LA
13%
NA
5%
Others
4%
Export Volume by Region
Asia
Europe
ME
LA
NA
Others
TiO2 Export
In Jan. ~ Oct 2020
999,776 MT

8. 1-10 2020 Chinese TiO2 Statistics
Compare with 2019:
• UAE, Iran, Pakistan
drop off the Top 10 list.
• Canada, France,
Egypt new entries
108,881.00
79,394.00
59,509.00
50,015.00 49,495.00
40,213.00
32,859.00 31,925.00 30,289.00 29,767.00
0.00
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
120,000.00
India Brazil South Korea Turkey Vietnam Indonesia Canada France Malaysia Egypt
tonne
TOP 10 Chinese TiO2 Receiver 1-10/2020

9. 31,925.00
22,958.00
21,684.00 21,483.00
20,647.00
19,643.00
15,919.00
14,215.00
8,938.00 8,803.00
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
France Poland Italy Spain Russia Belgium UK Holland Germany Portugal
Top 10 Europe Receiver 1-10/2020
1-10 2020 Chinese TiO2 Statistics
Export volume to Europe:
210,296 Mt
from Jan. till Oct.
An estimation of
250,000 Mt
in 2020

10. 385
403
552
538
717
831
907
1000
164
193
214 204 199
215 209
168
221 210
338 334
518
616
698
832
100
200
300
400
500
600
700
800
900
1000
1100
2012 2013 2014 2015 2016 2017 2018 2019
kmt
China TiO2 Export & Import
Exort Import Net Export

11. Chinese TiO2 Price Analysis _Cost Insight
 SP TiO2 Cost structure
 Sulphate Process
Each unit TiO2 production consumes
~2.5 units ilmenite; ~4 units Sulphate
acid
 All feedstocks accounts for 62% of total
cost
 Ilmenite accounts for 40~45% of the total
cost of production
Ilmenite
Sulfate
AcidAuxiliary
Fuel
Water
Electricity
Steam
Others
Cost Composition
Ilmenite Sulfate Acid Auxiliary Fuel
Water Electricity Steam Others

12. Chinese TiO2 Cost Insight
 China-produced Titanium Minerals Price
CNY
• Ilmenite is the most
important feedstock
expenditure in TiO2
production
• Ilmenite price in uptrend
since 2H 2019
• Feedstock price is back
to Q2 2017 level.
• TiO2 is exposed to heavy
cost pressure

13. Chinese TiO2 Cost Insight
 Imported Titanium Minerals Price
USD
• Oversea Titanium Minerals
supply-demand balance in
2019
• Supply deficit is emerging
in 2020
• Price remains high

14. TiO2 price is highly correlated to ilmenite price, or to say the rock bottom is determined by it.
Ilmenite price is back to Q2 2017 level, but TiO2 sales price is still 15% lower than the period.
Source: WIND

15. Chinese TiO2 Cost Insight
 Ilmenite Supply to Chinese TiO2 Industry
 Chinese Ore:
 5 million Mt in 2019
 More than 90% of the titanium minerals goes into TiO2 industry
 Imported Ore:
 2.61 million Mt in 2019
 2020 1-10 import ilmenite 2.46 million Mt, increase 18.76% Y.O.Y

16. 5.17
5.84
5.52
6.23
6.89 7.09
7.63
3.83
4.2 3.98 3.99 3.74
4.54
5.02
1.73
2.06
1.94
2.64
3.52
3
3.12
0
1
2
3
4
5
6
7
8
9
2013 2014 2015 2016 2017 2018 2019
MIILIONTON
CHINA ILMENITE DEMAND/SUPPLY
Ilmenite Consumption Ilmenite production Supply Deficit Source: WIND

17. Chinese TiO2 Cost Insight
 Titanium Minerals Supply Deficit Worldwide
 High industry concentration ratio, CR4 c.a. 60% in both
China and overseas
 Significant inventory depletion in recent years;
 Mature mines with grade declines;
 Mining companies reluctant to invest;
 Lack of new deposits to fill the gap;
 Supply growth falls behind the demand growth from TiO2
industry.
2018 Titanium minerals production

18. Source: Rio Tinto, TZMI Source: Iluka, TZMI
Source: Kenmare

19. 2021 Chinese TiO2 Forecast
 Expose to the rising feedstock pressure;
 Operates under the TiO2 average profit margin;
 Low to Zero Inventory level, tight availability;
 Chinese TiO2 industrial concentration ratio rise, leading players gain
power of discourse in the market;
 Typical boom-and-bust circle, step into boom circle
 A greater price potential, will stay at high level in 2021.

20. Thanks for your attention !
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