A stone provoked a thousand waves. On October 10, just after the National Day holiday, a M&A transaction case that could affect the global aluminum processing industry has become the focus of the industry.

“Daily Economic News” reporter asked the National Anti-Monopoly Bureau website found that Novelis, the world’s largest auto sheet manufacturer, acquired Aleris, the world’s leading aerospace board manufacturer, and passed China’s anti-monopoly review. : In the column “Public Cases for Simple Cases of Operators”, Novelis’ acquisition of the equity of Aili Company is listed. Some industry veterans said that once the acquisition is completed, the combined capacity of the two companies will reach 1.2 million tons per year, while the global demand for automotive sheets will be around 1.3 million tons in 2017. The combined companies will occupy the global car. A large share of the board market.

This is undoubtedly a major event in the industry, but there are also different voices. An industry insider expressed doubts to reporters: Why does this type of M&A transaction take a simplified anti-monopoly approval process with a “simple case”?

Chinese companies have wanted to acquire Aleris

The reason why this transaction is very popular is also due to the industry status of Aleris. As the world’s leading R&D manufacturer of high-end aluminum rolling products, the company is not only the largest supplier of Airbus, but also a long-term partner of aircraft manufacturers such as Boeing and Bombardier. Its customers include Audi, BMW and Mercedes.

Speaking of Aili Aluminum, in fact, China’s aluminum enterprises are the first to throw the “Olive Branch”. As early as August 29, 2016, Zhongwang Group, a leading aluminum processing company in China, announced that it had acquired the entire shareholding of Aleris through US$2.33 billion through Zhongwang US, which is also the largest overseas acquisition in the history of aluminum processing in China.

As the world’s second largest and Asia’s largest manufacturer and manufacturer of industrial aluminum extrusion products, Zhongwang Group and Aleris are highly complementary in terms of products, markets and technology.

Sean Stack, then president and CEO of Aleris, has repeatedly stated that he is very welcome and looking forward to the merger: “We are very excited about this strategic equity shift, which will prompt us to accelerate the pace of strategic capacity expansion. ”

However, the original “win-and-sell” “buy” is full of resistance. According to the Securities Times, the deal was opposed by some US senators and was not completed. In November 2017, Zhongwang US and Aleris announced the termination of the merger.

Just after the Chinese company’s merger and acquisition of Aleris was forced to terminate, India Aluminum Industry Corporation followed suit to launch the acquisition of Aleris. In January 2018, China Nonferrous Metals reported that India Industrial Aluminum Corporation plans to participate in the auction of Aleris. On July 26, Inaluminium Industries announced on its subsidiary, Novelis, that Novelis will acquire Aleris for $2.6 billion. On September 30, Novelis’s acquisition of the Aleris shareholding case was publicized on the official website of the China Anti-Monopoly Bureau, with a public notice period of 10 days.

M&A will affect the global aluminum processing industry pattern?

According to the “Guiding Opinions on the Application of Simple Cases for Concentration of Operators (Trial)” issued by the Ministry of Commerce of the People’s Republic of China, “in the same relevant market, the sum of the market share of all participating operators is less than 15%” “.

According to the public information, the “aluminum strip products” of Novelis and Aleris have a share of 0~5% in the Chinese market, and the sum is less than 15%, which is the reason for applying for a simple case of China’s anti-monopoly approval.

“Noblelis declares that the relevant commodity market and its market share do not comply with industry rules.” For the above situation, an industry insider said, “’Aluminum strip’ is a very broad concept, including automotive panels, aviation panels, tanks. Materials, marine boards, building boards, aluminum alloy strips for high-speed rail, etc. According to industry practice, aluminum sheets need to be subdivided according to application purposes (such as automobiles, aviation, tanks, etc.), and cannot be declared as ‘aluminum sheets’ in general terms. band’.”

The industry further explained that the aluminum sheet materials used in different terminal products have significant differences in production processes and technical parameters. For example, automotive panels require a certain degree of strength and elongation, long process flow, narrow process window, and high precision requirements for equipment. Therefore, automotive panels are high-precision products of aluminum strips. Currently, only a few aluminum processing companies in the world can produce.

According to industry veterans, if you look at the segment of the automotive panel, the Novelis family is already big. According to incomplete statistics, the current production capacity of Nobelis’s automotive panels exceeds 800,000 tons, and the production capacity of Aili Aluminum’s automotive panels is about 400,000 tons. In 2017, the global demand for automotive panels is about 1.3 million tons, of which Novelis is global. The automotive market already has a market share of over 50%. In China, the annual demand for aluminum sheets for automobiles is about 260,000 tons. The combined market share of Novelis and Aleris is more than 50%, especially for new models. The two sides of the transaction account for the dominant position in the Chinese market.

Then, after the merger of Novelis and Aleris, will the global aluminum processing industry structure change?

“The merger of the two companies will create a ‘big Mac’ in the automotive and aerospace sector, which will not only affect the full competition in the global market, but will also have a huge impact on the Chinese aviation board and automotive panel industry.” According to senior experts, judging from the development trend of the global aluminum processing industry, the core of the future game is concentrated on high value-added aerospace boards and automotive boards. At present, a number of aluminum processing enterprises in China are also making great efforts to enter this field, including Southwest Aluminum, Northeast Light Alloy, Nanshan Group, Liaoning Zhongwang Group, South-South Aluminum and other enterprises. In recent years, they have invested a lot of money. Manpower and material resources to build aviation board and automobile board production lines, but enterprises still need time to accumulate technology, achieve batch stable production and obtain certification of supply qualification. At this stage, domestic related industries are still in the cultivation stage. Nobelis and Aili Aluminum are one of the two, and the development space of China’s aluminum processing industry may be hindered.

“In any case, Novelis’ acquisition of Aleris has a huge impact on China’s aluminum processing industry,” said an aluminum processing company executive.

First, the price trend

According to the price monitoring of the business community, as of September 27, the average domestic methanol market price was 3,273 yuan / ton, the overall market conditions rose and fell between regions, the price increased by 19.39% over the same period last year.

Second, the market analysis

Products: The domestic methanol market continues the regional market, both ups and downs are reflected. Among them, the port was down by the sharp decline in futures, with a decrease of 30-70 yuan/ton. At the end of the month, the import and arrival of goods was relatively concentrated, and it is necessary to pay attention to the expected changes in inventory in recent days. The market in each region of the Mainland is adjusted accordingly according to its own supply and demand. For example, after the price cut in Guanzhong, the shipments have improved, the demand for storage in Inner Mongolia has been slightly lowered, the replenishment in Shandong has increased, and the supply and demand in the southwest has been rising and falling. The situation of mutual emergence; and the tight transportation capacity before and after the holiday, it is expected that the short-term market will continue to be differentiated. On September 25, the central bank issued a notice saying that taking into account the fiscal expenditure at the end of the quarter and the withdrawal of statutory deposit reserves by financial institutions may partially hedge the impact of the central bank’s reverse repurchase and government bond issuance, etc., in order to maintain the flow of the banking system. The reason was reasonable and sufficient. On the same day, the People’s Bank of China launched a 60 billion yuan reverse repurchase operation by means of interest rate bidding.

Industry chain: Formaldehyde: Shandong formaldehyde trading atmosphere appears in general, the market just needs to be shipped mainly; now formaldehyde is more volatile with raw material methanol market. At present, Linyi area concentrates 1,600 yuan / ton; Zibo and surrounding areas are 1620-1680 yuan / ton, slightly higher turnover. Acetic acid: The domestic glacial acetic acid market has risen sharply. The market continued to be tight, and some enterprises had difficulty in submitting orders, and there was a large supply gap. And some devices still have maintenance plans in the later period. Therefore, short-term stock-outs are difficult to alleviate. Therefore, the supplier is reluctant to sell and limited sales, and the offer has been raised significantly. DME: end-user every rose centralized procurement market, the DME market once again showing short supply situation, the overall domestic cumulative increase 50-150 yuan / ton, the mainstream short-term trend is expected to continue.

Third, the market outlook

On the positive side, domestic supply: the fourth quarter coking production limit, natural gas supply and other news support, and the northwest part of the equipment is still under maintenance, local supply is acceptable; foreign supply: international local methanol plant operating load, such as Southeast Asia, Russia, In addition, some installations in Indonesia still have maintenance plans, and the international supply pressure is not large. Transportation: Before and after the two festivals, the capacity of domestic transportation is tight, and the freight rate will be relatively high, which will support the cost of the land. End: In the winter, the natural gas supply factor is affected, and the local industrial gas price is raised. The cost of the gas project in Sichuan and Chongqing has increased from the previous period. Negative, traditional demand: Under environmental supervision, the downstream plate production in Shandong and Hebei areas is limited, affecting the demand for formaldehyde resources, and the raw materials are relatively high, and some downstream cost pressures remain; emerging demand: since mid-September, Henan The MTO projects in Shandong and the northwest have been slightly reduced, which is unfavorable for the digestion of local raw materials. At present, the industry starts to fall below 70% and needs to be closely watched; futures: futures with thread, PP and plastics are falling simultaneously, the players The mentality is formed with a certain pressure;Supply side: At present, some maintenance projects in Henan and Shandong have resumed work, focusing on the impact of subsequent incremental impacts in the corresponding areas; in addition, the current new methanol projects in Iran and the United States have been put into production, and it is necessary to closely monitor the impact of subsequent inflows into domestic increments/extrusion; Holiday factors: Near the eleventh holiday, based on the tight transportation capacity and the end of the stocking, the demand for lowering the local mainland enterprises, such as Guanzhong and Inner Mongolia. The methanol analyst of the business community expects that the methanol market will fluctuate and consolidate in the short term.

Report summary:

Since March, the operation of aluminum overseas manufacturers has repeatedly become the focus of the market. The normal operation of Hydro, Rusal and Alcoa was interrupted, causing different price shocks to the market. Since August, in the case of Hydro’s production cuts and RUSAL sanctions continued, and Alcoa’s sudden strike, alumina prices soared and continued to maintain net exports. However, the high production profit stimulation of overseas manufacturers and the new capacity in the long-term can not be underestimated. Domestic manufacturers have disadvantages such as cost and policy. The net export of alumina is difficult to maintain for a long time, and the cost hype caused by alumina is also Unsustainable, for Shanghai Aluminum, the cost is more back to the bottom support.

Since March, the alumina export window has continued to open. According to customs data, from January to July 2018, alumina exports totaled 346,600 tons, an increase of 1034.4% over the previous year. In the case of relatively tight domestic supply, exports are still sustainable, indicating that the shortage of alumina in the international market is even worse. There are even some opinions in the market that China may become a net exporter of alumina in the long run. Can the net export of alumina be maintained? Is the shortage of alumina in the international market continuing? Based on the international supply side of alumina, this paper will make a reasonable prediction of the future supply of alumina in the world by analyzing the operation of major international aluminum giants.

1. The production of the overseas Big Three is limited, and the supply of alumina in the international market is tight.

In the past two months, in the case of a shortage of domestic ore supply and high bauxite prices, the cost has pushed the price of domestic alumina to remain high. At the same time, overseas alumina prices have continued to rise, and the average price of port alumina FOB is 8 The monthly climb climbed to 640 US dollars, and the widening of the internal and external spreads has also become an important factor in stimulating the upward movement of alumina. The shortage of alumina in the early stage of the overseas market is inseparable from the production dynamics of major international alumina producers:

First, Hydro’s production cuts are still going on. Since February, Hydro’s alumina plant in Argentina, Alunorte, was ordered by the Brazilian government to cut production by 50% due to environmental problems. Hydro and the Brazilian government have been in the process of negotiating tug-of-war. According to Hydro’s second quarter report, the recovery time of the capacity has not yet been determined. From the quarterly report released by Hydro, it was observed that its alumina output in the first quarter was 1.277 million tons, down 12% from the previous year; the second quarter was 829,000 tons, down 35% from the first quarter and 47% from last year. As Alunorte produces all of Hydro’s own alumina, the nearby Paragominas bauxite and Albras electrolytic aluminum plants are also produced at 50% capacity due to reduced production at the plant. It is still uncertain whether Hydro will be able to resume full production in October. According to the 2017 production, as of now, Hydro’s production reduction has caused at least a reduction in the production of 1.53 million tons of alumina in the international market, even if it is fully restored by the end of October. This will result in a reduction in the actual supply of approximately 550,000 tons. On September 5, Hydro’s Alunorte alumina plant signed two agreements with the Brazilian government, including the Code of Conduct (TAC) and the Social Obligation (TC). Although it is still not confirmed, Hydra regards this. The two articles are important milestones in advancing the negotiations.

Second, the prospect of Alcoa strikes is unclear. On August 8th, Alcoa’s three alumina plants in Western Australia and two bauxite mines went on strike. Alcoa urgently mobilized temporary workers to take over production. Although short-term does not affect the output of alumina and bauxite, but the union Negotiations with Alcoa have not been agreed and are still in the negotiation stage. Alcoa’s Western Australian industry has a strong global position. In 2017, the three alumina plants in the area have a total capacity of 8.98 million tons, accounting for 54% of Alcoa’s alumina production capacity; two bauxite productions of 33.20 million tons, accounting for 74%. % bauxite production capacity. Shipments that have been shipped out of Australia have been affected, making the supply in overseas markets even worse. On September 7, Alcoa’s alumina plant in Western Australia and local unions voted on the new employment agreement. The vote did not reach a consensus. Local unions said workers would continue the strike since August 8.

Third, the Russian aluminum sanctions are pending. Since the U.S. Treasury Department announced sanctions against RUSAL on April 6, it has not yet been fully resolved. In October, the U.S. will make a final ruling. In terms of 2017 production, Rusal has contributed more than 6% of alumina to the global market, and more than 70% of its production capacity is outside Russia. If the sanctions cannot be resolved, the trade of overseas alumina is bound to be affected. Aluminum has a difficult road to sales, resulting in a shortage of overseas markets. On the evening of September 12, the market suddenly reported that Rusal was sanctioned or dismissed by the United States, and the price of Lun aluminum quickly retraced, but the Russian aluminum official did not comment on this.

From the latest developments of Rusal, Hydro and Alcoa, Hydro and RUSAL have released positive signals to resume normal operations, while Alcoa News is relatively negative. Will Alcoa’s strike continue for a long time, thus affecting the supply of overseas alumina in the medium and long term? We analyze in detail the production profit and capacity operation of overseas manufacturers.

2. The profit margin of overseas alumina production is considerable

Although Alcoa’s strike is continuing, we believe that in the context of the current high-yield production of overseas alumina, Alcoa has a positive attitude toward strikes, or made large concessions, and the possibility of a long-term strike is small.

Different from the tight supply of bauxite caused by domestic environmental protection policies, the supply of overseas bauxite is very sufficient, and mature manufacturers have a complete industrial chain from bauxite to electrolytic aluminum, ensuring that alumina can be stably and stably sold at a low price for a long time. Production of electrolytic aluminum. From the cost observations announced by the overseas first-tier alumina producers, South 32 has the lowest production cost. The average production cost in 2017 is about US$200/ton, and the average annual cost of Rusal in 2017 is about US$270. After 2018, the cost will be The innovation is low, and it has fallen to around $230 in the first half of the year. Alcoa and Hydro also announced the cost and price. In the first half of the year, as the alumina price went up, Alcoa alumina’s profit margin has approached 40%. After Hydro’s production cuts, the production cost has risen rapidly, resulting in a lower profit margin. The half-year profit margin remained at around 15%. Other big manufacturers have not clearly stated the cost of alumina production, but Rio Tinto and Vedanta have repeatedly mentioned that they have low cost advantages, and production costs are distributed among the top quartiles of world manufacturers.

Can the strike or shutdown be maintained for a long time under the high profit of alumina? Starting from the maximization of the interests of the manufacturers themselves, it is a reasonable choice for a “rational person” to take measures to resume normal operations as soon as possible. In fact, from the two contracts signed between Hydro and the Brazilian government, we can glimpse the company’s eager hope for a return to production. From the two agreements between Hydro and the Brazilian government, all investment, cost and fines in the TAC are estimated to be 160 million Yarel ($38.43 million), in addition to 250 million Yarel (600,500). The financial reserve for the US dollar; in the Social Obligations (TC), Hydro has committed to invest 150 million Yarel ($36.03 million) for urban infrastructure projects. In both agreements, Hydro has decided to pay at least $130 million. Come to work for the resumption of production.

Hydro is willing to pay a huge sum of money to resume production, naturally because the resumption of production can bring higher returns. Compared with Hydro, Alcoa’s alumina profit is even more impressive. In the second quarter of 2018, alumina sales profit has approached 40%. In terms of volume, Alcoa is the largest alumina producer in the world. In 2017, the annual output of alumina is 13.7 million tons. The ratio of alumina to electrolytic aluminum is as high as 4:1, which means that in addition to its own use, Alcoa annually There are still nearly 7 million tons of alumina exported. Australia’s three alumina plants account for 54% of Alcoa’s total alumina production capacity and are prominent in Alcoa’s aluminum industry chain. Under the double pressure of high profits and high output, we believe that even if the results of the first trade union negotiations are not satisfactory, Alcoa still has the motive to make greater concessions, and the strike in Western Australia may not be long-term.

3. Long-term supply pressure still exists

Under the stimulation of high profits, does the manufacturer have the possibility of expanding production? We reviewed the latest annual or quarterly reports of major international manufacturers, and sorted out the projects with clear new capacity in the aluminum industry chain. We found that although there is no need to worry too much during the year, supply pressure still exists in the long run.

In 2013, aluminum prices continued to slump for two years, and some international manufacturers have stopped production or sold assets in order to cope with losses. Beginning in 2015, with the start of China’s supply-side reforms, aluminum prices began to rise, and manufacturers began to resume production and construction of different sizes. From the published report, the world’s nine major manufacturers disclosed a total of 10.85 million tons of new alumina production and production capacity, and electrolytic aluminum production capacity of 3.85 million tons. From the construction cycle and production time, most of the new production capacity exists in the long-term cycle, and the absolute increment is small during the year. However, compared with the policy environment at home and abroad, the growth of long-term overseas production is not expected to be underestimated.

The world’s bauxite reserves are abundant, and overseas manufacturers do not have the trouble of environmental protection and rectification. From the perspective of the entire electrolytic aluminum industry chain, there is no shortage of raw materials. In addition, the supply-side reform only determines the ceiling of China’s electrolytic aluminum production capacity. The increase in production by overseas manufacturers is not limited, so there is no upper limit for electrolytic aluminum production capacity. More importantly, with the reduction of China’s supply, global aluminum prices have been raised, and the overseas aluminum producers’ industrial chain profit margins are generally higher, and manufacturers have sufficient incentives to expand production to obtain higher returns. With power and unlimited, the supply of long-term overseas alumina and electrolytic aluminum can not be underestimated. Compared with overseas giants, domestic manufacturers have many disadvantages such as cost and policy. China does not have the necessary conditions to become a long-term net exporter of alumina.

4. Domestic alumina prices have a risk of falling back

The domestic alumina price is mainly due to the mine rectification and environmental supervision in Shanxi. The supply of bauxite in the northern region is tight. In line with the negative news of the overseas giants, internal and external linkages began. At the end of June, domestic alumina prices went out of two. Round up. Since September, the tension in the northern ore has eased slightly, the price of bauxite has remained high, and domestic companies have increased their overseas ore procurement. In addition, the expectation that Hydro and RUSAL will resume normal operations will cause overseas alumina prices to start to fall, and the internal and external price gaps will shrink. The internal and external factors of the price of Lido alumina in the previous period have been weakened to varying degrees. The domestic alumina price is no longer rising, and the alumina price has a risk of falling back considering the speculation part driven by the external price difference in the previous period.

Looking at the price of electrolytic aluminum, the heat of the cost of alumina in August has faded. After entering September, the drag on consumption has become more apparent, and Shanghai Aluminum has entered the downward channel. In the short term, it is difficult for alumina to bring upward momentum to Shanghai Aluminum, and as prices fall, it may increase the downward trend of the disk. However, as the first major cost item of electrolytic aluminum, the absolute price of alumina is still at a high level in the year. The absolute cost of electrolytic aluminum is still high. There is a large loss in the industry, and the cost still has a bottom support for the price. In the short-term, after the cost returns to the bottom support, we believe that the space under Shanghai Aluminum 14500 is small, there is stocking in the downstream before the festival, the inventory of aluminum ingots is faster, and the macro level is good news, Shanghai aluminum may rebound.

According to the British “Financial Times”, Barrick Gold, the world’s largest gold company, acquired South Africa’s Rand Gold Resources Company for $6 billion. Barrick Gold Executive Chairman John Thornton said the deal It will merge the world’s largest “Grade 1” gold assets with a market capitalization of US$18 billion.

Under the agreement, Rand Gold shareholders will receive 6.128 shares of Barrick Gold in stock per share. The existing shareholders of Barrick will hold 64% of the combined company and become the largest shareholder. Randy Gold shareholders will hold the remaining 36%.

It is worth noting that in the past year, Barrick’s share price fell 25% and Rand Gold fell 34%.

Since mid-April this year, due to the impact of a strong dollar, hedging demand has flocked to the US dollar, pushing up the US dollar index and suppressing gold.

The two giants “shaking hands and saying joy” are also hoping to re-energize investors’ downturn in over-expenditure and poor earnings over the years. The data showed that after the merger, Land’s share price rose 5% to 51.19 pounds.

RAND CEO Mark Bristow also said that the new company’s goal will be to provide industry-leading returns, which will take a more rigorous review of the company’s asset base and how to conduct business, and do a good job. Prepare for a difficult decision.

According to publicly traded data, the combined new company will produce 6.5 million ounces of gold per year, which will further erode the US-listed competitor Newmont Mining.

The all-stock agreement price will set the price of RAND at around £49 per share, which is the closing price on Friday night. Shareholders also have the right to receive a dividend of $2. Barrick offered 6.128 shares per rand share and agreed to pay a $300 million break-up fee.

But analysts also said that the negotiations between the two companies’ heads, John Thornton and Bristol, will determine whether the deal is successful or not.

It is reported that Thornton will continue to serve as executive chairman of the expansion company, and Mr. Bristol will serve as the chief executive officer responsible for the daily operations of the mine.

However, the new company will be listed in Toronto and New York, which means London will lose its biggest gold stock.

Royal Bank of Canada Capital Markets said that due to Rand’s African exposure, Barrick shareholders may not accept the merger well and may make the new company vulnerable to Newmont’s acquisition.

It is worth noting that Barrick told the Financial Times that as part of the deal, Shandong Gold, one of China’s largest gold producers, has agreed to buy Barrick’s 300 million shares of Barrick, and Barrick will also Purchase the equivalent shares of Shandong Mining, a subsidiary of Shandong Gold.

Despite the current tight economic relations between China and the United States, there is still no significant impact on the export of Chinese titanium dioxide. From January to July 2018, the total export volume of titanium dioxide in China was 563,039.20 tons, a year-on-year increase of 21.03%.

China is the world’s largest exporter of titanium dioxide, and its current annual export volume ranks first in the world. In 2013, China’s export volume of titanium dioxide was 403,036.69 tons. In 2014, the export volume of titanium dioxide was 552,473.65 tons. In 2015, the export volume of titanium dioxide was 538,394.44 tons. In 2016, it was 720,470.09 tons, and in 2017, it was 830,915.95 tons. Except for the downturn in the international economic situation in 2015, the export volume of titanium dioxide showed a slight decline. The export volume of titanium dioxide in China has shown steady growth over the years. In 2017, the export volume increased by 427,879.36 tons compared with 2013, an increase of 106%.

In 2018, China’s titanium dioxide export volume still showed steady growth. According to customs data, by July 2018, China’s titanium dioxide exports in 2018 totaled 563,039.20 tons, an increase of 21.03%. The average export price in July was the highest in June 2018, at the highest price of 2,650 US dollars / ton.

Among the titanium dioxide exported by China in 2017, the major exporting countries are mainly developing countries such as India. On the one hand, due to the rapid economic development of these countries, the demand for titanium dioxide is large, and the domestic titanium dioxide capacity is limited. Some need to rely on imports. On the other hand, China’s titanium dioxide is mainly based on sulfuric acid titanium dioxide, which has price advantages, and China also has advantages in geography.

According to statistics, in 2018, the first exporter of China’s exporting titanium dioxide is still India. In the first three months of January to July 2018, China’s top three exporters of titanium dioxide were India, the United States, and Brazil, accounting for 9.86% of the total. 7.49%, 5.91%; of which, from January to July, it exported to India with a total of about 55,500 tons, an increase of 25% over the same period last year.

It is worth mentioning that China’s current economic relations are tense, and China’s exports of titanium dioxide to the United States have not been greatly affected. From January to July 2018, the total amount of titanium dioxide exported by China to the United States was 41,943.05 tons, compared with the same period of the previous year. Both have grown.

As the world’s largest exporter of titanium dioxide, China’s titanium dioxide export volume has a lot of room for growth in the future, while India’s developing countries as the main emerging economies, the demand for titanium dioxide has increased, and future development in India China will continue to be the main exporter of Chinese titanium dioxide.