Brazil Announces Preliminary Anti-Dumping Ruling on China’s Titanium Dioxide

On October 10, Brazil announced the results of preliminary anti-dumping adjudication on Chinese titanium dioxide, with the amount of duty ranging from USD 578/tonne to USD 1,772.69/tonne.

According to the results of the preliminary ruling announced by Brazil, the preliminary temporary anti-dumping duty imposed on Long Bai Group 578 U.S. dollars / ton (about 25%), Anhui Jinxing 654 U.S. dollars per ton (under the nuclear titanium dioxide, about 29%), the other listed companies (including CITIC Titanium, Huiyun Titanium, Pangang Vanadium and Titanium, etc.) for 1,420.83 U.S. dollars per ton, and other enterprises are not listed as 1,772.69 U.S. dollars per ton.

It is reported that after the announcement of the preliminary ruling until April 2025 will enter the enterprise defense stage, the final ruling results will be announced in April 2025. Brazil is one of the important exporters of Chinese chemical products, and titanium dioxide is no exception. According to data from the General Administration of Customs, from 2019-2023, Brazil’s total imports of Chinese titanium dioxide were 69,500 tons, 85,300 tons, 85,400 tons, 85,800 tons and 100,800 tons, accounting for 56%, 63%, 61%, 66% and 78% of Brazil’s domestic imports, with a compound annual import growth rate of 9.76%, observed from the perspective of China’s exports. demand accounts for about 6%-7% of China’s total titanium dioxide exports, which is relatively stable. After entering 2024, Brazil’s reliance on Chinese titanium dioxide has increased, with China’s total exports to Brazil from January to August amounting to 98,800 tons, accounting for 7.70% of China’s total exports, with a year-on-year increase of 30.67%.

Brazil’s anti-dumping investigation into Chinese titanium dioxide was initiated by an application from Tenor Brazil to the Brazilian Secretariat of Foreign Trade (SECEX).

For the Chinese industry, on the one hand, Brazil is one of the important target countries for China’s titanium dioxide exports, the short term will cause some pressure on China’s titanium dioxide exports; on the other hand, for Brazilian customers, or aggravate their wait-and-see mood, whether it is to release the amount of stockpiling or to do product switching, which produces a period of time of wait-and-see period, or aggravate the pressure on the export of China’s titanium dioxide; the third is that the anti-dumping most of them are aimed at the domestic producers. Or increase the opportunity for other producers and traders to export, which also promotes the good thing about export diversification; Fourth, according to past experience, before the official tax increase, more will be stocked up in advance, after the market or to promote the price of Brazilian titanium dioxide market; Fifth, the advantages of China’s titanium dioxide is very obvious, the anti-dumping tax increase precisely illustrates this point. Short-term look there is a little pressure, but in the long run must be no problem, because the overseas market is huge, this is just demand, China’s titanium dioxide is also their best choice, there is no one.

The impact on Brazil, one after another, anti-dumping investigations, is the protection of individual producers “backward” production capacity, which is not in line with the law of market development, but also damage the international competitiveness of individual producers, is to quench the thirst for hemlock; Secondly, tariffs will lead to first of all the rise in the price of titanium dioxide, the user with the increase in the cost of goods, until the product Profit decline, which will directly affect the competitiveness of its coatings and other products in the global competitiveness and vitality, there is no money, there is no energy to engage in research and development, and ultimately is likely to fall into a vicious circle of insufficient product innovation, weakening market demand; Third, including Brazil and other global regions and countries, producers or facing the challenge of transformation, tariffs imposed on the potential to make the two sides of the China-Brazil cooperation in the field of products and technology has been hampered, including investment and integration will also be greatly affected. integration will also be greatly affected.

According to the Ministry of Data statistics, as of now, China’s rutile titanium dioxide ex-factory price with tax at 14100-15400 yuan / ton, acute titanium titanium dioxide ex-factory price with tax at 13300-13600 yuan / ton; October titanium dioxide market demand as a whole is still less optimistic, the first half of the enterprise prices have been adjusted downward, in the middle of the market price is temporarily stabilized, but the enterprise shipping pressure is still big, the market turnover Atmosphere is sluggish; by environmental protection, equipment maintenance and other impacts, Southwest, East China, Shandong and other regions manufacturers have started maintenance, market production declined slightly, the overall production rate is still about 80%, and the market is still difficult to balance production and sales, price competition pressure.

Brazil announced the results of China’s titanium dioxide anti-dumping preliminary ruling, coupled with Saudi Arabia also initiated an anti-dumping investigation of China’s titanium dioxide, so that most titanium dioxide enterprises will be more pressure on exports, the domestic market also continued to be sluggish, is expected to later titanium dioxide market will continue to face greater pressure on the market price of a one-way negotiation.

China’s titanium dioxide enterprises are facing the challenge of trade protectionism is multi-faceted, the need for enterprises and the government through a full range of coping strategies to defuse the risk, consolidate China’s titanium dioxide in the global market position. Only in this way can we stand invincible in the fierce international competition.