Demand picks up environmental policies boost titanium dioxide is expected to be out of the trough

Since last year,China's titanium dioxide prices keep falling,the market into the trough.Especially since August of this year,represented by chongqing titanium industry company companies shut down due to environmental issues,is to let the titanium dioxide industry.The securities company thinks,the recent domestic titanium dioxide industry in prices,market demand picks up,stricter environmental policy and a series of positive factors,is expected to enter recovery.Market analysts believe that environmental policy will be the future of basic chemical investment over a period of time theme,the titanium dioxide industry is particularly noteworthy.At present,the titanium pigment market has gradually out of the market downturn,is expected to slow in the fourth quarter of the market price picks up,the secondary market performance is also worth looking forward to.

Recent international chain,prices rise,dupont,huntsman,connors,ishihara announced an increase in the price of the global market products,huntsman corporation,said even on January 1,2014 the titanium dioxide prices will rise further.Accompanied by the rise in price for the titanium dioxide foreign enterprises,chain,domestic enterprises have also follow to improve the titanium dioxide factory price.In a rise in price of titanium pigment in China market is expected to recover.

Dragon python titanium industry in Sichuan has formed at present is 300000 tons/year production capacity of rutile type titanium pigment,is the largest domestic special many kinds of titanium pigment production enterprises,in the domestic market,it is the main criteria of each vendor price reference.The price effect of leading enterprises to bring or cause other firms to go up.After the company has been taking interacting,gain market share strategy,resort to raise the guidance significance for enterprises.In addition,international chain,giant in late September to raise prices,the demonstration effect are also beginning to reflect.

Titanium pigment market remain low this year,in the first half part of the chain,small and medium-sized enterprise production at BanTingChan status,the stock has been depleted.At present domestic titanium dioxide manufacturers is relatively concentrated,the next step these manufacturers are expected to expand market share.With the recent domestic market stability,the supplier is good,and international chain enterprises to improve product prices,domestic prices follow up or will become a trend.

Along with our country the further focus on environmental pollution control,white space is expected to further expand the market application.

Promulgated by the state council on September 10,the action plan for prevention and control of atmospheric pollution,will strengthen the comprehensive control of atmospheric pollution,industrial enterprises to speed up the key industries desulfurization and denitration,dust removal project construction.Except for the circulating fluidized bed boiler coal-fired units are the denitration facilities should be installed,and the new dry process cement kiln to implement low nitrogen combustion technology transformation and install denitration facilities.Coal-fired boiler and existing kiln dust removal facilities to implement the upgrade.In early October,the ministry of finance announced that the central government will be arranged 5 billion yuan of special funds for the control of air pollution for atmospheric pollution control work in and around of the beijing-tianjin-hebei region,by 2017,the national regional and above city PM2.5 concentrations decreased by more than 10% than in 2012,a 25% drop in beijing-tianjin-hebei region should be.

Because of titanium dioxide in addition to outside the traditional paint industry application,can also be used as a catalyst for the flue gas denitration,exhaust gas treatment,the personage inside course of study thinks,the environmental protection demand will become a new bright spot of titanium pigment market.

According to estimation,using the current mainstream of vanadium titanium series denitration catalyst,titanium white 0.8 tons per cubic meter need to consumption.According to the itu,according to the results of the latest statistics by the end of 2012,the country has been put into operation power plant flue gas denitration total capacity over 230 million mw unit,there are still close to 590 million mw thermal power unit in active service unfinished denitration transformation,presumably,to the first half of 2014,our country will build 070 million mw thermal power unit,this means that in the future for a period of time the demand of denitration equipment installed will have 660 million kilowatts,denitration catalyst 528000 cubic meters.According to the national need before July 2014 coal-fired power plants would reduce nox emissions highest limit to 100 mg/cubic meters,until July 2014,a total need to consume 422400 tons of titanium dioxide.Therefore,thermal denitration will in the next two years significantly boost the demand of the titanium dioxide.

Market analysis,at present the mainstream of SCR denitration catalyst,titanium dioxide weight accounted for about 80%,costs accounted for 40%~50%,the size of the market from 2 billion to 4 billion yuan.In the face of huge denitration cake,each enterprise has started to grab food.

Notable is,titanium dioxide industry environmental protection may become one of the driving force of price increases.

Domestic titanium dioxide excess capacity is still serious,and the overall capacity utilization between 60%~70%,so the price of titanium dioxide ascension space is limited in the short term,but as "the titanium dioxide industry access conditions (revised edition)" policy,such as future environmental constraints would sharply increase and lead to the supply contract,rising costs will drive the titanium dioxide prices.

By Nicole