In 2006, the company's sale of rutile titanium dioxide amounted to 41,073 tons, and the market shares remained almost the same as the preceding year. The sales income of rutile titanium dioxide was up to RMB 501.91 million, taking 94% of total sales revenue in 2006. The business profits of rutile products reached RMB 99.73 million, sharing 95% in total profits of the company in 2006.

The ratio of the global output of rutile titanium dioxide to that of anatase titanium dioxide is about 85-90%:10-15% for the moment. As is predicted, China's output of rutile products will be 1.1 million tons or so in 2010.

The structure of China's domestic products is led by low value added anatase titanium dioxide, which is contradictive to the demand structure. In 2006, China's import of titanium dioxide amounted to 256,554 tons, up 12.7% year-on-year, while the export arrived at 193,747 tons, rising 23% from a year earlier.

At the end of 2006, there were 12 backbone producers of Rutile Titanium Dioxide in China. Besides, another ten enterprises also planned to expand the production of Rutile titanium dioxide. It is estimated that the output of rutile titanium dioxide will increase from 30 thousand tons in 2006 to about 60 thousand tons in 2010.

Rutile Titanium Dioxide Manufacturing Cost Structure of CNNC Hua Yuan, 2006

Changes in Domestic Output, Apparent Consumption and Self-sufficiency Ratio of Titanium Dioxide

2 Analysis of Cost Factors
2.1 Advantageous Prices of Vitriol Raw Materials
2.2 Relatively High Cost of Titanium Ore Concentrate and Products
2.3 Relatively Loose Pressure from Environmental Protection
2.4 Depreciation Cost
2.5 Rising Cost of Water, Electricity and Petroleum

3 Overall Analysis of China Titanium Dioxide Industry
3.1 Consumption of Titanium Dioxide
3.2 Concentration of China Titanium Dioxide Industry
3.3 Market Potential of Rutile Titanium Dioxide Products

4 Affects of Structural Adjustment of the Industry Worldwide on China Titanium Dioxide Industry
4.1 Access of Overseas Manufacturers into Chinese Market
4.2 Industrial Policies and Environmental Protection
4.3 Rising Cost