Pangang New Chloride-Grade Project: Will It Help China's Titanium Dioxide (TiO2) Industry?

Guangzhou, China, December 31, 2015 (Newswire.com) - ​Pangang Group Vanadium Titanium & Resources Co., Ltd. (Pangang Vanadium Titanium) announced that it would invest about USD 17.2 million on the new project of Titanium Dioxide (TiO2) produced by chloride process. The project is expected to be completed and put into trial operation at the end of December 2016.

Such a move by Pangang Group is aimed to transform China’s TiO2 manufacturing technique into the method of chloride process. However, with the current globally sluggish TiO2 industry, the development of China’s TiO2 industry is still under a lot of pressure, according to analysts CCM.

On Dec. 30, 2015, Pangang Group announced that its wholly owned subsidiary Pangang Vanadium Titanium would invest USD17.2 million on the new project of the oxidation experiment devices, which is for the production of 15,000 t/y (tonnes per year) of the chloride-grade TiO2.

Recently, the preliminary design work of the project has been completed and has already received the construction permission from Panzhihua (a city in Sichuan Province) Municipal Development and Reform Commission

It is estimated that the project will be completed and put into operation at the end of December of 2016, with the annually profit of about USD7.5 million, according to Pangang Vanadium Titanium.

TiO2 is the best source to produce the white pigment in the world, which occupies 80% of source when it comes to produce white pigments. It is considered as the key chemical in the developed countries and important components in producing coatings, plastics and paper. It also works as the content for edible antholeucins and sunscreens.

Currently, China is biggest manufacturer and consumer of TiO2 in the world. Manufacturers in China usually apply the sulfate process in production. That’s because the manufacturing technique of chloride-grade TiO2 has been controlled by international enterprises like The Chemours Company (former DuPont TiO2 business department) and Huntsmen.

When talking about the project of chloride-grade TiO2 in Pangang Group, it can be dated back to 2010.

That was a golden period for the development of China TiO2 industry. With the net profit over 300%, the manufacturers began to expand their capacities crazily. Pangang Vanadium Titanium had once proudly stated that it would construct a chloride-grade TiO2 project with the capacity of 100,000 t/y.

Actually, at that time, there was only one enterprise Jinzhou Titanium Industry Co., Ltd. (Jinzhou Titanium) to produce the chloride-grade TiO2, with the capacity of only 30,000t/y.

However, 2 years later, in 2012, the very promising Pangang Group had stuck in a corporate espionage: it was accused and charged by DuPont for stealing the commercial secrets of the manufacturing technique for producing the chloride-grade TiO2.

Though Pangang Group had kept silence on the accusation, its 100,000 t/y of the chloride-grade TiO2 project ended up with nothing.

Now, Pangang Vanadium Titanium picking up the chloride-grade TiO2 technique seems to be a sign for it to walk out of the shadow in 2012.

The goal of the TiO2 capacity of 15,000 t/y looks more down to the ground. If the project of the chloride-grade TiO2 can be put into operation in the future and the product quality can be approved by the consumers in the downstream industries, CCM believes that Pangang Vanadium Titanium will keep expanding their capacity in the short term..

In China’s TiO2 industry, the manufacturing technique of chloride-grade TiO2 has always been very popular among China’s TiO2 enterprisers, because of its high production quality, faster in production process and less pollutant emission.

During the peak time in 2011, the total capacities of the chloride-grade TiO2 in China, which recorded by the government, had reached over million tonnes.

However, till today, the last day of 2015, only four enterprises, including Jinzhou Titanium and Henan Billion, are able to produce the chloride-grade TiO2 in China. The capacity accounts for only about 7% of the total capacity in China.

The capacity distribution of chloride-grade TiO2 in China

China TiO2 industry has been sluggish in 2015, with the falling price of TiO2, according to CCM.

Till 31st Dec. 2015, the price of rutile sulfate-grade TiO2 is USD 1,500/t, which is lower than the production cost for many medium and small size enterprises. It has declined over 20% compared to that in early 2015.

Under the cost pressure, the manufacturers of chloride-grade TiO2, like Xingmao Titanium and Yunnan Xinli, have to end part of their capacity in the middle of 2015.

In the meanwhile, domestic enterprises didn’t show much confidence and enthusiasm in developing the production of chloride-grade TiO2.

For example, the project of chloride-grade TiO2 in Henan Billion has begun to put into operation in November. And the global leading coating company PPG announced in 15th December that chloride-grade TiO2 produced by Henan Billion will be applied in PPG’s coating production.

However, the TiO2 market in China still looked plain after such good news. 

As for Pangang Vanadium Titanium, it is never easy to construct the project of chloride-grade TiO2 in this timing but it is still a great blessing for China’s TiO2 industry.

After all, whether the project can be constructed successfully or make good benefits at last, it is encouraging for China’s enterprises to march toward the advanced international production techniques. It can really help China’s TiO2 industry to transform.

However, to save the terrible China’s TiO2 market? It takes a lot of effort than you expect.

Looking for more information about TiO2 in China?

If you are looking for more detailed intelligence on China’s titanium dioxide market, take a look at some of our latest research below:

Newsletter - for all the latest industry news, data and expert commentary, download the latest issue of China Titanium Dioxide Monthly Report

Industry Reports - for a detailed overview of the market and long-term market forecasts, see our latest TiO2 Industry Reports

Market Data - get regular updates on the price, production, consumption, manufacturing costs and leading producers of TiO2 in China with our Market Data service

Trade Analysis - you can find detailed data on every Chinese titanium dioxide supplier and trader, and what specifications and prices they are offering, in our Import/Export Analysis reports

About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.

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