To prepare for a world of big data and interconnectivity with third parties, business will need to improve their data management capability, including defining, cleaning up and maintaining data. Data is only valuable when it comes from a reliable, secure source, is structured within an architectural environment that accommodates internal and external data, and is regularly maintained.
The TiO2 World Summit, which was held from October 03 to 05 in Spain, has granted big insights into the worldwide titanium dioxide (TiO2) market situation and served not only as a meeting point for the international players but also updated the participants on the latest innovations, trends and directions. It became clear, that market tracking and research is and will be one of the key elements for businesses to succeed in the titanium dioxide industry and make the right, sustainable decisions.
When talking about the global TiO2 market, it is inevitable to take a closer look at the situation in China, serving as the main production and export areas as well as the main consumer region for TiO2. Market intelligence firm CCM and trade analysis firm Tranalysis, both brands are part of the parent company Kcomber, have released an online platform for data mining, structuring, analyzing and visualizing to enable fast and ambitious market research on China’s and worldwide TiO2.
This paper gives an overview of the current TiO2 situation in China compared to the global trend and introduces how the information of internal market research combined with data from search engines, news and industry websites, e-commerce platforms, and Customs can be turned easily into structured, meaningful market insights and serve as a reliable forecast tool to stay ahead in the game.
From 2013 to 2015, Chinese TiO2 price decreased affected by oversupply and a depressed international as well as domestic economy. However, China’s TiO2 industry recovered in 2016 with an overall operating rate exceeding 82%, downstream demand increasing and more trades being made.
Regardless the negative price development, the titanium dioxide production in China grew constantly from 2013 to 2016, due to the high demand in the country itself as well as in international markets. The national TiO2 capacity totalled 3.59 million t/a and the combined output of 39 TiO2 companies that maintained consecutive production reached 2.2 million tonnes, up by 11.80%.
In 2017, the Chinese government started to implement stricter environmental protection measurements, which led to forced production limitation and even shut-downs of some companies. The results are a falling operating rate of manufacturers to less than 60% in the middle of the year.
In 2010, China became the largest TiO2 producer in the world. Since then, China is one of the major influencers of global TiO2 markets. However, the four largest TiO2 manufacturers are not from China. Those are Chemours, Christal, Tronox, and Huntsman. The recently merged company Henan Lomon is the fifth largest producer in the world and the dominant manufacturer in China. However, even Henan Lomon is the largest Chinese producer, the enterprise only accounts for about 5% of the global capacity, while the other Chinese producers combined to reach a global share of 48%. This shows the high decentralized character of China’s industry with plenty of small- and middle-scale producers.
One of the main factors for China’s huge TiO2 demand is the recovered macro-economy and the GDP increases by 6.70% YoY in 2016. As a result, the downstream demand of TiO2 substantially grew as well.
In the last 10 years, the consumption of TiO2 in China has increased in average 8% every year, caused by the high need of paint, plastics, and fibres. This is demonstrated in the share of TiO2 by industry in 2016, where paint accounted for almost 60% of the total share, while one-fifth of TiO2 is used in the plastics industry and three percent for paper products.
What’s more, China is additionally the largest exporter of titanium dioxide. In 2016 China exported over 700 thousand metric tons of titanium dioxide around the world. The main export destinations were India, the United States and South Korea. This was a large increase in the 540 thousand metric tons exported in 2015. In 2016, this was the first time that China has exported more titanium dioxide than the United States. The United States exported an estimated 650 thousand metric tons of titanium dioxide pigments in 2016, with about 30% headed for Western Europe, 16% to Mexico and 10% to Canada.
Overall, China’s imports have witnessed a declining trend in the period from 2008 to 2016. The country already became a net exporter of TiO2 in 2010, when the export volume surpassed the import volume. The import volume fluctuated several times, falling under 200 million kg in 2012, was able to recover and dropped again in the year 2016.
China’s imports and exports of TiO2, Jan. 2016 – Jan. 2017
TiO2 E-commerce trend in China
China is the largest e-commerce market in the world, driven by the largest population with a more and more busier lifestyle and less time for physical shopping. In the first quarter of 2017, the online retail sales in the country went up by more than 32% year-on-year, reaching 1.4 trillion yuan. This is about USD210.8 billion.
China’s e-commerce companies are booming, benefitting from the convenience of clients to compare different products and suppliers online, see reviews, order online, and get the products delivered, available on just one platform. Hence, it is not a surprise that the development of the largest e-commerce enterprise in China, Alibaba, has shown an immense growth in the last years. The e-commerce giant Alibaba accounts for more than 10% of China’s retail sales and about 75% of the national online sales.
Annual e-commerce revenue of Alibaba from 2010 to 2017, by region (million yuan)
However, the online sales in China are still only accounting for 15% of the national total.
for TiO2 related e-commerce platforms, the main websites to consider are
1688.com, Yclmall.com, and jwelltitanium.com. 1688.com is the world-leading B2B
purchase platform, owned and operated by Alibaba Group. It has by far the
greatest number of users in China and therefore has developed to the largest
e-commerce platform of TiO2 in the country. Yclmall.com is operated by
the Titanos group for the purpose of purchasing titanium dioxide,
carbon black, pigment, resin, and similar products. Besides serving as an
e-commerce platform, it also provides services for technology, logistics, and
trade issues. Jwelltitanium.com, found by Pangang Group, allows products to be
up for sale or auction, offers information about supply chains of steel and
titanium dioxide, and facilitates spot transactions. It aims to build the most
influential integrated e-commerce platform for the industries of
vanadium-titanium and other chemicals.
Data-based analysis of TiO2 market trend
To prepare for a world of big data and interconnectivity with third parties, business will need to improve their data management capability – defining, cleaning up and maintaining data. Data is only valuable when it comes from a reliable, secure source, is structured within an architectural environment that accommodates internal and external data, and is regularly maintained.
data are nothing but raw material. They're a necessary condition for insight,
but not a condition that necessarily creates insight. Analysis of data is the
key for real insights in the subject and the fundament to make sustainable and
reasonable business decisions with long-term goals and success.
The data gathered by e-commerce platforms is one of the most important assets they gather since it enables capturing the consumer information to implement the most personalized shopping experience and tailor-made marketing. This huge data management is the key advantage that many online retailers have on their physical counterparts.
For example, the analysis of Alibaba purchase data regarding Titanium Dioxide in July and August 2017 can show the most popular titanium dioxide brands in the market as well as the related enterprises from the perspectives of buyers and suppliers. This gives a good overview of the hottest products in the market and the trade price that is used in average. Buyers and suppliers can use this information for their reference in negotiations with their business partners.
Data from search engines can show precisely, what, when, and how people are searching for topics and products around TiO2. Search engines even now from which region the request is coming from. When manufacturers and traders of TiO2 use this information, they can understand the needs of potential clients and optimize their own marketing campaigns on targeted audience, time period, communication channels, and many more areas.
Baidu.com is the largest Chinese search engine. With Baidu Index, a data sharing platform based on mass data about hundreds of millions of users, people can tell discover the search volume of a certain keyword on baidu.com, how price changes during a specific period of time, how people respond to price volatility, and many more information.
From Jan. 2016 to June 2017, top 9 places by search volume of titanium dioxide were Guangdong Province, Shanghai City, Zhejiang Province, Jiangsu Province, Beijing City, Hebei Province, Henan Province, Sichuan Province and Fujian Province. The ranking was the same as that of coating output in 2016.
There are many benefits of using big data technology for TiO2 market research. This method enables real-time updates about TiO2 trends, which are faster and more reliable than traditional methods of information gathering. The information is furthermore free from any artificial intervention since it is consisting of the pure data without any subjective interpretations. As seen in the example before, the organic search data can reflect the consumer demand quite well. All in all, big data-based analysis of TiO2 is cost effective and time saving for the users.
Innovative data analysis platforms
Kcomber has published two online platforms, developed by the market intelligence brand CCM and trade commercial brand Tranalysis. Those two platforms are using the big data of search engines, e-commerce, news websites, as well as Customs and combine those with the in-house technology and market research to enable a unique and innovative way for users to find the high-quality information they are looking for in the TiO2 related industries. Furthermore, the information can be automatically turned into scalable charts, graphics, and customized reports for immediate use on business meetings and decisions.
CCM Online Platform
CCM’s Online Platform serves as the database for many years of market research by in-house industry insiders and experts in the form of market data, monthly newsletters, and industrial reports on TiO2 in China. Based on this foundation, the platform offers many analytic tools to get the valuable insights in China’s TiO2 market.
In another function, CCM gathers and analysis data from e-commerce and companies directly for close price monitoring. Combined with the price forecast algorithm, which includes historical data, upstream and downstream development, public statements and more factors, this Price Analysis Function not only shows the historical price by country, region, and manufacturer but also gives a forecast for the next months. To support this analysis. The function also crawls the internal market research information of CCM and external news information to give the full insight into China’s TiO2 price trend.
The last major function of the online platform combining big data crawling is Company Research. It allows users to search for TiO2 in China, which will show all TiO2 related enterprises. Starting from choosing the enterprise of interest, there are many segments to click for detailed information. On the one hand, the function shows the company relations, including all clients, suppliers, subsidiaries, the parent company, and other related enterprises crawled from CCM’s internal enterprise database. This gives an overview of all relations between manufacturers, traders, and buyers in the TiO2 market to understand the supply chain flow. On the other hand, it reveals related indexes of the chosen enterprise, such as contact information，financial info，legal status，products portfolio，export & import data，related news from valuable media websites, production info，and company dynamics. Users can get all relevant data and information of companies in this easily navigable database.
Tranalysis IE Wizard
Kcomber’s trade brand Tranalysis has recently opened the import and export analysis online platform IE Wizard. IE Wizard is a multi-dimensional online trade data analysis platform under Tranalysis’ brand. The main functions are a trade data processing platform, analysis and analytic tools, aggregates Trade circulation data, and carrier for trade analysis products.
IE Wizard is a connectivity and automation tool for Raw Trade Data in China and worldwide. Based on the global Customs import and export information as well as trade data from reliable industry websites, IE Wizard connects all related commodities and enterprises in real trade flows and visualizes the results in immediate usable and adaptable charts for convenient trade analysis.
China’s TiO2 market is the key area to look at for the future development. Supported by the booming downstream industries, the production is likely to grow further in the future and China might become an even bigger influencer of the global market.
Even it can be considered to be still in the early state, China’s e-commerce will definitely grow fast in the near future and enable a supportive consumer and supplier analysis. The data crawled from news and industry websites as well as from search engines and e-commerce platforms help to monitor, understand, and forecast the trend of TiO2 in China and worldwide.
Kcomber’s market and trade research, combined with the external crawled data, enables a comprehensive and insightful view on the development of Tio2 in China. While constantly searching for more reliable data sources and enhancing the platforms with AI and automatically report writing algorithms, market and trade research is on the brink of a new technology level, moving away from human-based market research and report writing towards AI and algorithm-generated, customized reports and analysis.
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