Titanium Dioxide leading enterprises have resonated since the price increase. Manufacturers in various regions of the country have announced that they will keep up. The price increase involves more than 20 manufacturers. The data shows that price fluctuations are more pronounced in Shandong and Southwest China. The average price of white powder has risen by 3%, while that in Shandong has increased by 2.5%. However, the continuous price hike has been insufficient. Many regions have experienced deserted conditions last week. During the first two days of the week, the market has not changed much. From the perspective of the industrial chains affecting market prices, the domestic sulfuric acid market is weak in the upstream raw materials. The current domestic average price of 98% sulfuric acid is around 192 yuan/ton, and titanium concentrates. It also maintains its status. At present, the mainstream price of 46% titanium concentrate in Panzhihua is 470-500 yuan/ton. The upstream price cannot support the market demand for titanium dioxide to continue to increase prices. In the downstream market, in the long run, real estate sales are picking up. Titanium dioxide is an important raw material in the paint production process. In the future, if the real estate industry continues to pick up, the titanium dioxide market may be It will become fiery; in the short term, the market still has poor demand, and the domestic market for titanium dioxide continues to decline to about 50%. SMEs have stopped production and the mainstream front-line companies have started to stabilize. This has alleviated the problem of unbalanced market supply and demand. However, the suspension of production of enterprises is mainly due to the long-term loss-making status of the company, and it is difficult for enterprises to support them. Coupled with the approach of the Spring Festival, the future operating rate may continue to decrease. In terms of policy, at the meeting of the Central Financial Leadership Group held on November 10, 2015, “economic structural reform†was one of the important topics. General Secretary Xi Jinping outlined four key points for this reform, including resolving excess capacity, digesting real estate inventory, reducing corporate costs, and developing the stock market. In 2015, the production capacity of titanium dioxide in China was 3.52 million tons, and that of the titanium dioxide industry was 67%. However, due to the high debt ratio and overcapacity in the titanium dioxide industry, the supply-side reform is very beneficial to the industry demand for titanium dioxide production capacity and industry consolidation. Today, the market price of titanium dioxide is low and volatile, but the manufacturers' prices are still high. Industry insiders said: “The cost of some large-scale entrepreneurs in the industry can be achieved at a minimum cost of titanium dioxide of 6000-7000 yuan/ton. General SMEs Costs range from 9,000 yuan to 10,000 yuan per ton.†Both policies and markets work together to accelerate productivity and industry restructuring. The future market is full of hope for a long time. The dividend of the policy is expected to be prominent in the titanium dioxide market to solve the problem of supply and demand difficulties faced by the market. In the short-term, there will be more suspension of production before the Spring Festival and the supply and demand side is expected to ease. The inventory of mainstream companies is not high and is maintained at a level of around 3,000 tons; the market has gradually become deserted and the market volatility will gradually decrease.
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