Titanium dioxide in 2016 to achieve continuous counter attack, there are several reasons: a few years ago the market price of titanium dioxide has entered the end, at the same time, the cost of raw materials prices continue to rise, led to the strong price of titanium dioxide business will. Another important factor is the price of crude oil recovery. The third reason is that titanium dioxide itself demand growth, the domestic terminal and exports are greatly enhanced. In addition, titanium dioxide prices also cannot do without the supply end production operation deliberate.

Titanium dioxide in the domestic terminal downstream, mainly used in paints, plastics, paper, ink and other fields, which is the largest downstream coating of titanium dioxide, titanium dioxide consumption accounted for more than 60%. The relationship between the coating and the real estate is very close, real estate data from the terminal can change the demand of titanium dioxide is more intuitive to see. Although this year’s real estate industry is mainly to the inventory, but also in the hot property market actually stimulates new production and decoration needs. Since 2016, benefit from the real estate “replacing business tax with value-added tax(VAT)” policy driven, and real estate development, real estate tax against other sectors, real estate sales continued warming, sales area of 1-8 in 2016 the national real estate sales growth rate of 25.5%, higher than 38.7%. In the market driven, coating data also significantly compared with last year improved, 2016 1-7 months of above scale coating enterprise production accumulated over ten million tons, reaching 10 million 73 thousand and 800 tons, an increase of 6.92%, while the 2014-2015 annual output of over ten million tons in 8 months, in 2013 for 10 months.

In terms of titanium dioxide exports, 2016 also achieved explosive growth. From the latest data, in August 2016 China’s titanium dioxide exports 65419.682 tons, an increase of up to 70.25%. Titanium dioxide for 4 consecutive months, exports more than 60 thousand tons, and in the past month exports of 50 thousand tons have been excellent level, after all, China’s titanium dioxide month will yield about 200 thousand tons, exports accounted for more than 1/3 will undoubtedly greatly release domestic stocks, has become the most powerful bull market of titanium dioxide explosion point.

Titanium dioxide prices in addition to the above factors, also cannot do without the deliberate operation of the supply side, such as production. This is also reflected in the prices rising behind the industry environment remains grim and not standardized. The manufacturer of continuous price increases, but the single agents and customers have a greater bargaining space, to hold up terminal are flexible, often need to implement price through price increases again on a range, the market price is more chaotic, the same manufacturer of same type in different between the customer transaction price there may be a huge difference. Therefore, in the rising market is not all insiders are making money this year, titanium dioxide channel is not much better than in previous years, they are between the execution price and maintain customers tend to make profits on concessions, while also facing some manufacturers try to face the impact of the Internet trading platform and terminal.

Behind the titanium dioxide exports a large number of cheap prices, export prices in the first half of the basic $1500 / ton, while the three quarter rose to $1700 / ton, but the price is still too low compared to the domestic. The use of low-priced exports go, while domestic high profit situation, also upset the titanium dioxide export of the road is still a long way to go.

Continue to optimize the industry, the future remains positive

The titanium dioxide industry in China has finally ushered in a rare “bull market” after years of recession, the bull market will continue until when?

Due to the current export of titanium dioxide to maintain a good momentum of the real estate industry, the terminal also maintained a good momentum, from a historical perspective, the current price of titanium dioxide is not high, so the titanium dioxide prices there is still a large space.

In addition, the industry structure optimization in the self leading everything in good order and well arranged, for example with Sichuan longmang billions with or will be in this year made substantial progress, which will promote the continuous improvement of industry concentration.

In general, the titanium dioxide industry boom is good, the market is still in the uplink channel, the titanium dioxide, the latter trend is still optimistic expectations, the market is expected to rise or will be run through the year 2016. Even in 2017, as the supply side reforms, continue to accelerate the recovery of industry mergers and integration as well as the terminal industry, titanium dioxide industry is also expected to continue to rise steadily.