Titanium dioxide market long-term optimistic

Last week (2.29-3.4), the domestic market for titanium dioxide stabilized, with anatase producers in southwest China and southern China rising by RMB 200/ton, and all manufacturers in central China showing a rise in chlorinated products by RMB 500/ton. Production companies started construction. In the recovery state, the market supply is sufficient; according to the data, the average price of titanium dioxide market is about 10,500 yuan/ton, and the price situation in each region is: East China price range is 10300-10700 yuan/ton; in central China is 10000-10500 yuan/ton; southwest The area is 10300-11000 yuan/ton;

In terms of the market, the company's shipments were dull, the volume of new orders was relatively small, and all of the orders were mainly based; the price of titanium dioxide was low for a long time, and the weak market demand remained unresolved. However, the export of mainstream enterprises was stable, and the pressure on inventory was mitigated. . According to relevant sources of the Titanium Dioxide Association, the current SMEs in the market downturn, the loss is serious, many companies are facing pressure to stop production, the recent real estate suddenly crazy, titanium dioxide companies want to take this opportunity to raise prices and ease business pressure. In the short term, the market in the reply is still likely to raise prices. The titanium dioxide market is full of potential in the long term.

The Fourth Session of the Twelfth National People's Congress and the Fourth Session of the Twelfth National People's Congress opened in Beijing on March 3 and March 5, 2016 respectively. The 2016 National Two Meetings coincided with the beginning of the “Thirteenth Five-Year Plan” and was also a crucial year for China to advance structural reforms. In the government report, Li Keqiang first proposed that the main target for the development this year is GDP growth of 6.5% to 7%; and during the 13th Five-Year Plan period, the government will vigorously promote structural reforms, “prominent structural reforms on the supply side, and do a subtraction. , Addition again, reduce inefficiencies and low-end supply, expand effective and middle- and high-end supply, increase the supply of public goods and public services, enable supply and demand to synergistically promote economic development, increase total factor productivity, and continuously liberate and develop social productivity.”

For the titanium dioxide industry, policies will drive optimization of production capacity in the industry, and high-quality, low-energy-consuming products will become the mainstream of the market. Affected by this, the market competition will become more and more benign, and once the price war, adulteration products will be The cost is reduced by technological innovation and replaced by the competition between high-quality products. On the other hand, structural reforms on the supply side will be implemented, and tax cuts will be the inevitable path. If the supply-side structural reform is held high, it will solve the company's major problems. Titanium dioxide enterprises are facing serious losses. In terms of four listed companies, Annada suffered a loss of 138 million yuan and China Nuclear’s titanium and white loss of 131 million. Only the profit of Lililian’s reverse market increased by 76% to 111 million yuan. If tax cuts can be successfully implemented, companies will have new impetus, and cash will always be the kinetic energy for innovation. With the support of guiding policies and funding, the value of titanium dioxide and the atmosphere of the market will produce qualitative changes, so the long-term rise in the price of titanium dioxide is only a matter of time.