Domestic titanium dioxide upswing continues to surge in downstream industry

Affected by the continuous price increase of titanium dioxide , the coatings industry has passed the “winter-like” 2016. In 2016, the price of titanium dioxide rose from 10,900 yuan/ton at the beginning of January to 15,300 yuan/ton at the end of December, an increase of 40.36%. At the same time, the sales environment has gradually become severe, which has greatly increased the pressure on the coatings market industry downstream of titanium dioxide. Under the pressure of cost, various stages of the coating market have also experienced a range of price increases.
During the Spring Festival, the price increase of titanium dioxide has slowed down. When the coatings industry just breathed a sigh of relief, the world's largest titanium dioxide giant Como released new news. On February 6, Como announced that it will raise the price of all Ti-Pure titanium dioxide sold in North America, Canada, Asia Pacific, Latin America, Europe, Middle East and Africa from March 1, 2017, with the Asia Pacific region raising US$150/ Ton. Subsequently, on February 9th, Huntsman also announced the price increase of titanium dioxide (titanium dioxide) pigments sold worldwide, including Europe, Africa, Middle East and Latin America raised by 235 euros / ton or 250 US dollars / Tons, Asia Pacific raised US$160/ton, the price increase will take effect from April 1, 2017; North America will increase US$0.07/lb, and the price increase will take effect on March 1, 2017.
Although the foreign titanium dioxide giant issued a price increase statement, but whether such a price increase statement will drive domestic titanium dioxide enterprises to raise prices is still unknown, and need to wait for the domestic titanium dioxide industry giant to profit from the news. On January 30th, a fire broke out in the equipment of the titanium dioxide plant in the city of Pris, Finland. The city of Pori has a capacity of 130,000 tons of titanium dioxide, which is equivalent to 15% of the total capacity of Huntsman and 10% of total European demand, although Huntsman is working on it. Responding to normal production of the unit as soon as possible may also have an impact on the global titanium dioxide market price.
Recently, the China Titanium Dioxide Industry Association has produced more than 39 full-scale titanium dioxide production enterprises (three chlorination companies, 35 sulphuric acid companies, and one sulphuric acid/chlorination company). Statistics show that in 2016, the total production of titanium dioxide in 39 companies was 25,972,212 tons, an increase of 274,199 tons compared with 23,230,012 tons in 2015, an increase of 11.8%, a record high.
It is worth noting that this 11.8% is out of place in the context of de-capacity. It is true that both production and price will be problematic, but if these increases are high-quality products, if the market has been reborn, these increments are healthy. The price and price have become possible. High-quality products are a way to break the old relationship between supply and demand and a prerequisite for a healthy market environment. As an industrial structure closely related to the coatings industry, the titanium dioxide industry is also limited in terms of policies. In addition to the "limited load order" to raise the cost of transportation production, "business reform and increase" to increase business tax, the environmental verification of the titanium dioxide industry in 2017 will become increasingly strict, correspondingly, the comprehensive cost of titanium dioxide in 2017 is bound to rise sharply.
In view of the rising trend of foreign titanium dioxide industry and the output value and demand of domestic titanium dioxide industry, the domestic titanium dioxide still rises. At the same time, due to the price increase of titanium dioxide, the products of the coating industry are also facing price increases.

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