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In the past two years due to the financial crisis, from the middle of 2011, the titanium dioxide demand caused by the global economic downturn quickly shrank, but the global production capacity was in the stage of increasing production. The obvious change in the supply and demand relationship was one of the important reasons for the price drop. As well as the continuous increase in domestic titanium dioxide production capacity, the company’s production burden has increased.
Some experts analyzed that the impact of raw material prices on the titanium white market is also an important cost support. Titanium dioxide exports to the industry is to reduce the inventory "dependence", and China's titanium dioxide in the international market as a "cheap" role, the export price is even lower than the domestic sales price, although the solution to the stock, but "unprofitable" can earn Make the company "sigh."
According to statistical analysis, the price of sulfuric acid-based rutile titanium dioxide in early 2013 was about 14,000 yuan/ton, and it was about 12,500 yuan/ton at the end of the year; at the end of 2014, it was similar to the same period, and after entering 2015, the market price was based on 12,500 yuan/ton. Well, the industry is struggling to survive in the market waiting for the market to pick up.
Driven by the favorable policies of the country in April, the “Twilight†of the titanium dioxide industry first appeared. On April 10, Longjing announced that its all-brand titanium dioxide products had been raised by RMB 600/ton to stabilize the “uptrend†of the market and obtain the market. Regarding the recognition of titanium dioxide price increase, “Long Yao does not rise, we believe that the market price will not riseâ€, said the downstream procurement. With the arrival of the second wave of price rises by Long Hao, manufacturers in East China, South China, and Central China have taken the opportunity to increase by RMB 200-500/ton, and Lililian on the 15th raised all models of titanium dioxide. Price 500 yuan / ton, or 5%. The second wave has been more than 10 companies in titanium dioxide collective price adjustment.
Afterwards, most industry players are optimistic about the late-stage market: a number of factors will support the future price of titanium dioxide. First, after a severe loss in the industry, the production capacity will shrink significantly, and the willingness of companies to ship at near-cost prices will be low; second, the railway freight rate will increase. Further increase the production costs; Third, the renminbi depreciation is expected to promote export optimism; Fourth, in mid-March, the industry held the first meeting of the seventh council of the China Titanium Dioxide Industry Association, and the Longyan Group was appointed chairman of the board of directors. Li Longquan, chairman of Longxi Group, won the chairman of the board. The current council has made a systematic introduction to the status quo of the recent national policies, regulations, and implementation. These forthcoming policies and regulations will undoubtedly play an important role in the development of the titanium dioxide industry. Consolidation of the industry trend of consolidation, Henan Ji Li Lian temporary suspension of April 7, April 10 Long Yao announced price increases, so that titanium dioxide industry in the depth of the finishing period, making the Fang Li Li Lian and Long Hao merger rumors prevail, With the prices bottoming out, the titanium dioxide market is expected to rebound.
Subsequently, Long Hao-Li Lilian’s “marriage†was successful. The market was shocked and cheered at the same time that the new era of titanium dioxide industry will be born. China's titanium dioxide industry ranks among the top international companies. From the perspective of production capacity, the combined production capacity of the two will reach 630,000. Tons, it has become the first in the country and the fourth largest titanium dioxide company in the world, second only to 1.16 million tons of DuPont, 902,000 tons of Huntsman and 778,000 tons of Costel, occupying the absolute leading position in the domestic industry. Secondly, the export share is an important aspect of domestic corporate marketing. In 2014, China exported 550,000 tons of titanium dioxide, of which Longxi and Daili jointly exported more than 220,000 tons, accounting for 40% of the total export volume, and it has an international market share. A certain influence. After the combination of the two will grasp the absolute right to speak of the domestic titanium dioxide industry, opened the industry in 2015, the corner of the integration of the curtain, will inevitably inspire other companies such as China Nuclear Titanium, Jinpu Titanium, Panzhihua vanadium and titanium, Ananda listed companies And Shandong Dongjia, Daun and other companies to follow suit, faster to promote the process of industry consolidation, in the integration process, the stock market will help promote the recovery of titanium dioxide prices. To tend to a reasonable market price is the inevitable way for the titanium dioxide enterprise to go out of its predicament and rational development.
Subsequently, in May 2015, the total national paint production was 1.403 million tons, a year-on-year decrease of 0.76%, and a negative growth within one year. From January to May, China's total accumulated paint production was 6,238,400 tons, which decreased to 0.94% from the same period last year. Among them, Guangdong's paint production in the largest paint province fell the most, reaching 29.29%, paint provinces Hunan and Hebei also showed a decrease of 11.39% and 9.65%, respectively, the paint industry overall signs of weakness is more obvious.
The recent “sweeping†plunge in the stock market is worrying that the titanium dioxide industry is unlikely to be “individual†and the market demand for titanium dioxide is obviously weaker. Market rumors: This week, the price of Sichuan Longjing titanium dioxide was lowered by RMB 1,000/ton, Henan Deli. Joint adjustment down 400 yuan / ton. The price reduction is the first price adjustment after the merger of the two leading companies, and the price may still be adjusted in the future. According to the analysis, this rumor is based on the lack of industry. Although the current situation of the industry is more difficult, it is not easy for the price to rise and it is expected that the market will be weaker but the rigid demand can still be supported. In the short term, it is difficult to “justify†the upward trend of the reasonable market price.
After the storm, according to relevant statistics, the supply of new domestic capacity in 2015 was less than the sum of the increase in demand and net exports. In the last year, the price of titanium dioxide was at a historically low level, in the Chinese titanium dioxide industry. After the association accelerates collaboration with various ministries and commissions to formulate relevant policies and regulations and gradually implement them, the price increase will meet the conditions and momentum. In 2015, the pace of merger and reorganization of the titanium dioxide industry will accelerate, and the development of the Chinese titanium dioxide industry will cause drastic changes in the entire international industry structure. Powerful countries - China's titanium dioxide industry manufacturing driven by the leading companies will certainly come out of the "flood" usher in the dawn.
In the past two years, the market of titanium dioxide has been declining. In the face of no choice of environmental protection investment, production companies face the weak market demand and the current situation of price decline, and it is very necessary to enhance the industry's prosperity.