Titanium pigment market development in our country from "price" to "value"

         Titanium dioxide is the best white pigment,the coating and plastic market rapid development at the same time,a big impetus to the development of the Chinese titanium pigment market,however,as of April 10,domestic titanium dioxide market has experienced six months of silence,the current market price has started to recover,then the titanium dioxide industry in China how much development space?In recent years is titanium dioxide business cycle,making the industry into the irrational state again for the expansion of the titanium dioxide.
         2-3 years ago,has publicly industry enterprise expansion and business to join the new titanium dioxide project nearly 30,total capacity of 160-1.83 million tons/year.But judging from the actual situation of the first half of 2013,except a few LvHuaFa project and a handful of sulfuric acid method,the vast majority of the project progress slowly or in put aside state,some actually has been canceled.Completed in 2013 project is not much,inhibit the capacity increase is due to market reasons,but according to our further verification,2014-2015,with nearly 550000 tons of production capacity increase,average annual productivity growth of 9.5%.According to the solution,since 98,in real estate and cars driven by rapid development of domestic titanium dioxide the expansion of production capacity and output is very rapid,compound growth rate of close to 20%. From the perspective of the increase of production capacity,from 1998 to 2006 in demand driven,with the improvement of the domestic sulfuric acid method,the new capacity increasing,in a short span of seven years,the domestic titanium white production capacity increased from less than 200000 tons to more than 1 million tons.
         Positive in 2009 and 2010,because of the demand,capacity expansion,more radical,single new 500000 tons annual production capacity,began to slow in 2011,the increase in production capacity of 70000 tons,has boosted exports at the same time,as a direct result of the 2011 outbreak of titanium dioxide.2011-2012 annual capacity growth rate of 3% and 4% respectively,compared with nearly 30% of the growth has been greatly reduced by 2010.From the perspective of industry starts,since 2000,2000 years ago due to the rapid growth of demand,and relatively lagged behind the demand growth capacity expansion,titanium dioxide industry starts to maintain basic in 80-85% of a reasonable level.Because of the influence of the financial crisis in 2007-2008,the rapid decline in demand,the industry operating rate lower than 60%.And after 2009,demand in slow recovery at the same time,the increase of industry production capacity is far more than demand,in addition to the boom in 2011 when strong industry starts once back to 85%,the rest of the time starts are maintained at around 70%.2012 domestic titanium dioxide composite capacity of about 2.6 million tons of without surface treatment and processing enterprises.
         Recently,there appeared some of titanium white industry key enterprises.Titanium white production process with sulfuric acid method and LvHuaFa two kinds,but is restricted by technology,production capacity of more than 98% also used sulfuric acid method is not used by the 1990s.And by using sulfuric acid process,titanium dioxide to consumption per ton of fresh water 100-150 tons,comprehensive energy consumption of about 1.6 tons of standard coal,at the same time produce concentration about 20% of the waste sulfuric acid 8 tons 8 tons, 100 tons of acidic waste water, waste residue, and exhaust gas containing sulfur dioxide,acid mist and dust,25000 cubic meters.With comparable size calculation,domestic titanium dioxide industry emissions per ten thousand yuan output value of industrial waste water,waste gas emissions,sulfur dioxide emissions,respectively is chemical industry average of 3.85,1.03,2.13 times,is all corresponding index of the chemical industry 3 to 8 times.Method of "three wastes" emissions of sulfuric acid in the sluggish market conditions,tons of titanium white product of environmental treatment cost even more than the profits of the enterprise.It is important to note that in addition to deterioration of the market in recent years.
         More than 60 domestic titanium pigment production enterprises,small and medium-sized enterprises accounted for the vast majority,in respect of pollution discharge,the small and medium-sized enterprises do the absolute main force.Titanium dioxide industry conference held in Beijing in 2013,the titanium dioxide industry access conditions revision being disclosed for the first time,revised and resources recycling,advanced technological process characteristics,process system energy parameters and range of environmental protection related aspects,such as sulfuric acid method process routes for industry production put forward the new specifications.Industry in the future is expected to raise the barriers to entry of the industry,some serious pollution of small and medium-sized enterprises will face a halt production and even eliminated stress,will effectively reduce the pressure on the supply side.
         Due to 50000 tons of titanium dioxide is the economic production scale critical point,is expected to both barriers to entry,or consolidation point,50000 tons and below capacity of production of titanium dioxide manufacturers will face a serious exit pressure.According to our statistics,the current domestic capacity in 50000 tons the following manufacturers reached 30,up to half of the total titanium dioxide manufacturers.Total capacity of 700000 tons,accounting for a quarter of all current capacity.Once we think environmental protection from top to bottom,the new environmental costs will force that most of these small manufacturers choose to leave,greatly improve the pressure on domestic supply.
         The future competition pattern is more than the price compete,simple cheap has retained customers,who can provide the most extensive product value,provide more perfect the value of experience,can better win customers,win the market.

By Nicole