2017: Titanium dioxide market is expected to develop steadily

The titanium dioxide market in 2016 has already left the market with rising prices. In 2017, it has come quietly to us. In terms of the tradition of previous years, the first half of 17 years, that is, from January to March, was the traditional off-season titanium dioxide. Although manufacturers realized this, some large companies at home and abroad are interested in pulling in the off-season and they are At the beginning of the month, the first round of new year's price hike was carried out. For example, Philip Lilian issued an announcement on the evening of January 5, saying that from now on, the selling price of each type of titanium dioxide (including the sulphate titanium dioxide and chlorination titanium dioxide) is based on the original price. It raised 700 yuan/ton for domestic customers and 100 US dollars/ton for international customers. However, there are not many follow-up manufacturers.

Titanium dioxide manufacturer

For titanium dioxide manufacturers, the entire Chinese titanium dioxide manufacturer has basically no plans to suspend production during the Spring Festival this year, and they are fully committed to delivering their original orders. Then it will face a very prominent problem, that is, the existing warehouse inventory can not be less than a lot of goods, whether it is an inland production plant, or a warehouse of a coastal production plant can basically put only about half a month of inventory, and even some plants can only Put inventory for about a week.

In previous years, such as the Chinese New Year in 2015, many titanium dioxide plants were out of service to spend the Spring Festival season in an off-season so as to avoid too much pressure on the use of valuable funds. Now in order to pay off orders for 16 years, each of them is operating at full capacity and the warehouse is inevitably inflated. If the downstream goods are delayed and the funds are not in place after the explosion, the impact on the titanium dioxide plant can be imagined.

Downstream units

The Spring Festival of the current round will basically end on February 10, and the time for the downstream manufacturers to resume production will be between February 10 and February 20, some of which will be around the beginning of March and most will resume in mid-March. In order to consume titanium dioxide, the main market's tradition in previous years is basically the same as in early March. The soaring of titanium dioxide in 2016 will cause a large number of downstream customers to desperately build the goods. About half of the downstream customers now have inventories ranging from months to months. As far as the downstream market is concerned, the expectation of customers getting goods in junior high schools in March is not very strong. Another thing to note is that in previous years, it was not until the height of the peak season in May that it would show strong desire to get goods.

Environmental pressure

In 2016, the country made heavy fists to carry out long-term environmental inspections and remediation of chemical companies. A considerable number of heavily polluting enterprises were permanently shut down, and some responsible persons were arrested and punished. As a member of the chemical industry, the domestic titanium dioxide plant has been severely tested, but due to the implementation of the policy, it has basically passed smoothly.

In 2017, China's environmental protection law enforcement will only strengthen and will not weaken. At the end of 2016, environmental protection law enforcement has started to conduct environmental protection enforcement inspections on a large number of downstream companies such as paints. At present, there are as many as 5,000 medium-sized paint companies in China, but it is also rare to become bigger and stronger. Therefore, shutting down integrated downstream coating companies is also There is no delay. Affected by this, the downstream coating companies will inevitably shut down a considerable number of weak and small enterprises in the next few years. This will have a certain impact on the short-term sales of titanium dioxide, but in the long run it will have no harm to the development of the Chinese coatings industry. .

Increased domestic production capacity

At the end of 2016, the Panzhihua Iron and Steel Titanium Plant was successfully put into operation. The production of rutile titanium dioxide at the new plant reached a level of 100,000 tons, and it is expected that the entire line will be produced smoothly in March 2017. Yunnan Zechang resumed production with “Kunming Dongsheng Titanium Industry Co., Ltd.”. On January 17th, R-251 products continued to be successfully released. After testing, all indicators have basically returned to their original levels. Zechang's total production capacity is 60,000 tons a year. Ruikang Titanium in Xichang is preparing to resume production after the Spring Festival, and its annual output will reach around 60,000 tons. In this way, in 2017, China's titanium dioxide industry will increase the production capacity of nearly 200,000 tons of rutile titanium dioxide, which will greatly ease the shortage of supply in 2016.

Titanium dioxide market is stable in 2017

At present, the titanium dioxide industry has a good boom, and the market is still in an uptrend channel. There are fewer new orders from manufacturers, mainly to implement new orders. Most of the plant's orders have been received in February and March of the 17th. Most of the manufacturers' production schedules in January are full. Downstream general companies have chosen to stock up years ago, so the sentiment of downstream goods in the second and third months of the year is not high. Some manufacturers may try to pull up prices in February to stimulate downstream demand. The general atmosphere of the trading market is stronger until May. In the second half of the year, the main turning points are in the traditional September and October. If the off-season of July and August can be a smooth transition, then the peak seasons of September and October this February will not be very large. However, the market still uses the supply and demand situation as a weather vane.

According to the current GDP growth rate of the Chinese economy, the overall economy should be slightly stronger than 2016, so that the total use of the titanium dioxide downstream market should be at least equal to that of 2016. There will not be much fluctuation, and there will be no 2015 Year-old trough. Therefore, in 2017, China's titanium dioxide will not appear in more than a dozen consecutive rises in 2016. Generally, it will be mainly stable and the supply situation will be relatively smooth. If there is a price increase, there will not be as much as a two or three-time increase in January 2016. How will the specific market develop, let us wait and see.

2017 is a year of real demonstration of the strength of titanium dioxide manufacturers.

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