Since the Chinese New Year in 2016, the domestic titanium dioxide market has been climbing. With the seventh wave of domestic growth, international giant Ishihara announced last weekend that the price of titanium dioxide sold in the Asia Pacific region will increase by US$150/ton from July 1, 2016. Perhaps the international giants followed their subsequent price hikes. Perhaps this is the internal and external resonance factor for this year's titanium dioxide price increase. At the end of 2015, foreign giants shut down production, and this year's demand gap is supplemented by Chinese exports. From January to May, the export volume reached 285,000 tons, a year-on-year increase of 24.9%. With the increase in the quality of domestic products, imports have decreased relatively. Imports from January to May The amount was 69,000 tons, down 14.6% year-on-year. It is reported that from January to May, the growth rate of new housing starts and completed areas in China exceeded 18%, the sales area of ​​commercial housing increased by 33%, and the automobile output increased by 5.6%, which in turn drove the domestic market demand. Because the real estate sales to the decoration led the paint market to lag behind from 6 months to 1 year, the next half year or even continue into the first half of next year, the domestic market for titanium dioxide will not fall off the mark. Environmental protection is becoming increasingly stringent, and the environmental protection investment of titanium dioxide companies is an inescapable hard indicator. Fortunately, trying to avoid can only harm oneself, and the high cost makes rational owners not collide with this “bottom lineâ€. In terms of supply-side reforms, there will be less new capacity this year, and improving quality is the common recognition of companies winning the market. In the current domestic market sulfuric acid rutile mainstream quoted price of 11,000-12800 yuan / ton, based on last year's stagnant state basically the same period, therefore, titanium dioxide market prices tend to be reasonable there is room. In the context of economic downward pressure, the “Brexit in the United Kingdom†has many complicated and uncertain factors in the world economic environment, but the basic economic orientation of the country has not changed. Li Keqiang said in his address at the Summer 2016 Davos Forum: “The Chinese economy is in a critical period of transition between new and old kinetic energy and transformation and upgrading. We will adhere to the development of the top priority and implement innovation, coordination, green, open, and shared development concepts. While appropriately expanding aggregate demand, we must unswervingly promote structural reforms, especially structural reforms on the supply side, do a good job of removing production capacity, destocking, de-leveraging, lowering costs, and supplementing short-boards so that development can shift from over-reliance on natural resources. Rely on human resources, maintain high-speed economic growth, and move toward high-end level." He also stated that China’s economic hope has always exceeded difficulties and the fundamentals have not changed. China can achieve its major economic goals this year. The domestic titanium dioxide industry in a favorable multi-market environment, to stabilize the sulfuric acid method rutile titanium dioxide in the 13,000 yuan / ton or reasonable price range in the second half of the market, but also in line with the interests of the market's industrial chain balance point, in line with the "profits" The characteristics of the times will also help curb irrational expansion of production capacity and increase production. A reasonable industry will reduce production rates and inventory to match market conditions and achieve a more reasonable market environment.
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Titanium dioxide market tends to be reasonable in the second half of the year