Recently, market pessimism has caused many industry players to worry about the titanium dioxide industry. This year's April and May, prices rose and stabilized and rebounded. The rutile-type titanium dioxide mainstream offer oscillated in the range of 1,200-13,000 yuan/ton for nearly two months. After a long time, it has been difficult for the end of the year because of the weak demand of terminals. The sudden drop in market demand in June caused a burst of good expectations. Although in response to changes in the market, the price of titanium dioxide has fallen sharply in the past two months, and the effect of “price cuts to libraries†has been poor. Now, the market’s concern is that once the mainstream price falls below 10,000 yuan/ton across the board, whether it will bottom out again ?
It is understood that the current domestic and international titanium dioxide market as a whole showed a declining trend, domestic companies follow up the low position, so the market is unable to rebound in the down channel, although the production enterprises reduce production, but the inventory is still increasing, and the social access is not smooth, Terminals reduce load and reduce procurement attempts to “zero inventoryâ€, and overall curb the market trend of titanium dioxide.
In addition, the drastic reduction in downstream demand of paint companies, coupled with the implementation of national environmental protection, consumption tax and other policies, has exacerbated the difficulty of market volume. The downstream market of titanium dioxide and the downstream downstream have encountered a “cold streamâ€.
The current market price of titanium dioxide is already a "jumping price." Constrained by cost constraints, there is still limited room for further decline. Currently, the production enterprises near 10,000 yuan/ton have strong support, and the whole line has broken below 10,000 yuan or just people's concerns. Any corporate profit is the purpose of “making losses and making profits†will not last long, or will be profitable in the long term. Development, or lose money to close down, this is a natural and reasonable choice, so the closing of the closing is inevitable, according to the statistics of China Titanium Dioxide Industry Association, the current production capacity in 2014 is 3.2 million tons; the production capacity is under construction 1.16 million tons; the proposed production capacity is 96 Ten thousand tons. The total production volume is 2.47 million tons and the apparent consumption is about 2 million tons. With the expansion of production capacity in these two years and the sluggish market, people have realized that China's titanium dioxide industry has excess capacity at the low end, serious product homogeneity, and harsh market competition. The owner of the original expansion company has realized that “if not blindly expanding The bank was not so easy to borrow at the time, and my days are good." After the expansion of many companies, the current loan repayments and poor market conditions are all the worse.
With the gradual implementation of the country's new economic policies and environmental protection regulations, small and medium sized titanium dioxide production enterprises have been significantly affected by this, and companies that have not met the environmental standards are either ordered to make corrections or directly “closed downâ€; in the long run, they are beneficial to the overall industry. Going forward in the direction of energy conservation, environmental protection, and high-tech industries will benefit the continued healthy development of the titanium dioxide industry. How to seize the opportunity and take advantage of the situation in the context of industrial restructuring and transformation and upgrading will be the new choice facing the titanium white industry. At the same time, the upgrading of environmental protection policies is bound to force some backward companies to withdraw.
In this market state, some loss-making manufacturers have already cut production or stopped production. Currently, the operating rate of titanium dioxide industry is less than 60%. The Mid-Autumn Festival holidays and the eleven long holidays are approaching. The downstream rigid demand is expected to be purchased under the low market. It is expected that this In the second half of the month, the titanium dioxide market will consolidate at the end of the month, and at the end of the month, due to the holiday stock market of some manufacturers, there will be a slight rebound. Xiaobian believes that the existing market should not be overly pessimistic, and the objective factors such as production cuts and deductions and long-term preparation must exist. In order to implement certain regulations and policies such as rationality, national environmental protection, and industry regulations, it is only necessary to wait for improvement in demand.
In addition, with the improvement of environmental protection policies and the improvement of the level of environmental protection concepts, the environmental protection status of titanium dioxide enterprises has been significantly improved. Most enterprises have built environmental protection devices and put them into normal operation to achieve waste discharge standards. Each enterprise adapts to local conditions and creates a clean production and recycling economy industrial chain with distinctive corporate or regional features, including "sulfur-titanium", "sulfur-phosphorus-titanium", "sulfur-iron-titanium", "sulfur-ammonium-titanium". "Wait. Bi Sheng, director of the Titanium Dioxide Center of the National Chemical Industry Productivity Promotion Center and the Secretary of the Technical Innovation Strategic Alliance of Titanium Dioxide Industry, stated: “Now, China's sulfuric acid method and the traditional sulfuric acid method are no longer comparable, and they have achieved comprehensive utilization of resources. All energy consumption is reduced, and product quality can be improved compared with international brands.†China's titanium dioxide industry is heading in a healthy, orderly and sustainable development.
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