Domestic titanium dioxide market fluctuates

                                              Looking at the market of titanium dioxide in China, the reduction in inventory of production companies and the increase in raw material prices will push up the price of titanium dioxide and increase it to a certain extent. The weak downstream demand will not be able to support and prices will decline. According to the estimation of current industry productivity, the overall industry starts. A rate of over 70% will result in oversupply. Therefore, people in the industry generally judge the market based on "stocks" to predict market changes.

In 2011, the overall price of titanium dioxide was good, and the profit rate of the industry was relatively high. The operating rate of the manufacturers was also generally high. The annual output was 1.813 million tons, an increase of 21.1% over the previous year.

However, the market for titanium dioxide in 2012 is no longer in sight. Downstream industry growth slowed significantly, causing the titanium dioxide market to fluctuate. From January to September, the output was 1.31 million tons. The output of many large-scale enterprises was lower than the same period of last year, and the output of some small-scale enterprises was higher than the same period of last year.

The import volume of titanium dioxide in China has been higher than the export volume before 2010, until the import and export in June 2010 was basically the same. In 2011, the pattern of titanium dioxide import and export has undergone a fundamental change. On the basis of stable import volume, exports have been on the rise, making China the first time a net exporter of titanium dioxide.

From January to September this year, China imported a total of 119,600 tons of titanium dioxide, a decrease of 75,600 tons compared with the same period last year, a decrease of 38.7%; exports of titanium dioxide 316,200 tons, compared with the same period last year, an increase of 9,836 tons, an increase of 3.2%.

Although the apparent consumption of titanium dioxide in China keeps growing, the output is still far greater than the consumption, and the dependence on foreign markets continues to increase. However, due to the global economic downturn, China's titanium dioxide import volume is gradually decreasing, while exports are also not optimistic, even for consecutive months of negative growth. Exports in March were the highest in the year, and exports in April, June, July and August were negative.

The poor export situation has put more pressure on the domestic market. In addition, titanium dioxide in foreign countries was used to accelerate shipments in order to grab the country's market, and it also adopted a price reduction promotion strategy, resulting in a fiercer market competition in the titanium dioxide industry. Export dependence has added an important constraint to market conditions.

China’s dependence on foreign titanium concentrates will increase. In the foreseeable time, the supply of foreign titanium concentrate will account for over 60% of China's total demand. And with

The implementation of the ban on the export of minerals in Vietnam, and the short supply of titanium ore in China is even more intense. This is a big constraint for the titanium dioxide market.

Another raw material market ** fluctuations this year, consuming 4 tons of titanium dioxide per ton, ** price fluctuations directly led to market price fluctuations in titanium dioxide. At present, the domestic ** market remains weak and the average price of 98% ** is already below 350 yuan/ton.

Mr. Ning Kecheng, general manager of Shanghai Yantai Metals Co., Ltd. believes that this year the market has experienced many vibration "inflection points", and the change in the "tumble" of the titanium dioxide industry market is not a normal market rule. Both ends (materials, markets) are small and intermediate. The (large capacity) pattern is the root cause of the turbulence in the titanium dioxide market, and the irregularity of the current distribution model has exacerbated the volatility. At present, some domestic distributors use the industry information to be opaque, and even exaggerate and distort market demand and supply information, and aggravate the market volatility by selling goods and concentrating selling.

“At the end of the year, the titanium dioxide industry in China experienced a vibration adjustment in 2012. Under the general environment of industry consolidation in the coming year, it will gradually become stable and reasonable.” Ning Kecheng general manager said.

Anticorrosion Pigments, Inkjet Receptive Coating, Matting Agent