Artificial Intelligence
Leveraging Market Leverage to Promote Titanium Industry Upgrade
In a recent report from the 2007 National Titanium Dioxide Industry Conference, it was revealed that China's titanium dioxide sector has experienced rapid growth since 1998. The industry has seen the emergence of several well-known brands with strong market performance and the introduction of advanced production equipment. Technological advancements have gradually been adopted within the sector, leading to improved localization and overall industrial strength. However, this growth has also brought challenges. Production capacity and actual output have surged, resulting in an oversupply in the market and fiercer competition, which is not favorable for long-term sustainability.
Bi Sheng, director of the National Titanium Dioxide Center at the Chemical Industry Productivity Promotion Center, emphasized the need for market-driven restructuring to push the industry toward larger scale and more intensive operations. He called for improvements in product quality and technological upgrades to elevate the entire industry.
Despite having the world’s second-largest production capacity for six consecutive years, Bi Sheng pointed out that many aspects—such as raw materials, production processes, product quality, and enterprise layout—still lag behind global standards. Uncontrolled expansion is harming the industry's transformation from being large to being strong. Additionally, environmental protection and clean production levels remain below satisfactory, and the development of raw material industries has further constrained the growth of the titanium dioxide sector.
Internationally, the titanium dioxide industry is trending toward greater concentration. Global production capacity (excluding China) is around 4.5 to 4.7 million tons, with the top five producers accounting for 76% to 78%. In contrast, China's top five producers only account for 26.7% of the national total, highlighting a significant gap in industry concentration.
Experts agree that the industry must align with global trends by increasing concentration and accelerating restructuring. Only when individual producers reach a certain scale can they enhance their risk resistance and ensure sustainable development. Expanding through new facilities alone is not enough; industry integration and reorganization are more practical paths forward.
Yao Hengping, chairman of the Titanium Dioxide Branch of the China Coatings Industry Association, noted that the industry has made progress in achieving scale, intensity, and higher concentration. For example, Panzhihua Steel has established a large-scale titanium group, while some Guangxi-based companies have built high-capacity processing plants. Future mergers and acquisitions in regions like Shandong and the Yangtze River Delta could help integrate smaller enterprises into larger, market-oriented operations.
Tang Zhenning, head of the National Titanium Dioxide Industry Center, highlighted that China's current production process relies heavily on the sulfuric acid method, which is lengthy and environmentally harmful. The products are mainly anatase-type, which lacks the pigment performance and weather resistance of rutile. To catch up, the industry should focus on developing high-value products such as chemical fiber-grade titanium dioxide, mica pearl titanium dioxide, food and pharmaceutical-grade titanium dioxide, catalysts, and high-purity white powder.
There is growing awareness of the importance of product quality, with many companies taking steps to improve. For instance, Panzhihua Iron and Steel has partnered with research institutes to establish R&D centers, while Shandong Dongjia introduced advanced production lines. Tang also stressed the need for consistent product performance, as downstream users require stability across batches.
China possesses one of the world’s most advanced native titanium ore deposits, but the complex mineral composition makes mining and separation challenging. Most titanium minerals are currently extracted as byproducts of the iron and steel industry. Experts recommend focusing on recovering up to 20–22% of titanium from blast furnace slag. For example, Panzhihua Steel produces over 300 million tons of slag annually, with more than 60 million tons of titanium dioxide lost each year. Efforts to recycle this material have already shown promising results.
Bi Sheng believes that, using Panzhihua as a model, the industry should not only focus on titanium concentrates but also develop deep-processing products such as titanium slag, titanium dioxide, titanium tetrachloride, and titanium sponge. Combining low-cost electricity with abundant resources could give acid-soluble titanium slag a competitive edge. This could position Panzhihua as a global high-precision titanium raw material base, similar to Australia or Canada, and eventually form a comprehensive titanium industrial hub in China.
As of 2007, there were 67 active titanium dioxide producers in China, with a total annual production capacity of 1.15 million tons. Actual output reached 860,000 tons, with non-pigment grade products accounting for over 50,000 tons. At least 30 new projects were under construction or planning, with five completed in 2007, adding 160,000 tons of annual capacity. Two lines were shut down due to environmental issues, reducing capacity by 30,000 tons. Thus, the net increase in production capacity for 2007 was 130,000 tons, with output expected to reach between 930,000 and 970,000 tons.
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