Titanium dioxide: industrial upgrading path can you go easy?

Titanium pigment known as titanium dioxide,belongs to the inert pigment,was considered the best performance of white pigments all over the world at present, widely used in coatings,plastics,printing ink,papermaking and other fields.Titanium pigment,was also a "favored",create larger profits for the market participants.From the second half of 2010 to 2011,less than a year,to nearly increase ten thousand yuan,in mid of 2012,ennahda share prices have risen by 290%,Billions which to be listed on July 2011,and in 2012 issued high p/e ratio of 33.5 times."Generous rewards rouse one to heroism"--soaring profitability,attracted the domestic investors an influx of 2010-2012,multiplying growth of domestic titanium dioxide capacity,to 2013,the traditional sulfuric acid method of capacity expansion pace slowed,next round expansion will aim at relatively high-end chloride process,and denitration catalyst titanium dioxide will also play a role in "assists".

When speeding growth in capacity encounter downturn of market environment,in the background of industrial upgrading pace slow,continues of extensive expansion,titanium pigment market is like a car loaded with passengers in high speed,by the high speed channel into the muddy country road.The manifestation in the market is that more and more inventory,have to reduce the price,major companies reduce the brand effect,to discharge the goods such as negative,the average price of rutile type titanium pigment in may market,compared to the same period in 2012 nearly fell 4500 yuan/ton,or 23.9%.So swings that greatly impact the industry confidence in the market,the traders to take positions, downstream manufacturers increasingly cautious operation,market condition is down step by step,the lower did not boost the market trading atmosphere,but rather to "chatter" awkward situation.

Overall,after the lunar New Year holiday,imports of titanium dioxide are rising, prices slightly,or save,performance is very different from the domestic market.In the condition of big capacity but weak demand,domestic titanium dioxide market is different from volatility of outside market,therefore Kronos etc.giants' indication of pricing plan,is not concerned by his domestic industry,furthermore conflicted emotion of downstream industry,incline searching low price goods or importing form Asia.So outside dish gives most obvious support.

Comprehensive industrial environment,factors such as the present status of domestic supply and demand,the situation of domestic titanium dioxide market is no lift,but given the upfront market fast downlink speed,manufacturer cost pressure is gradually obvious,the descending situation will slow down slightly.

By Nicole