2016 China Titanium Dioxide Industry “Upward Upward”

Under the “moderate growth” development model of China's economy in 2016, China's titanium dioxide industry has swept the gloom of 2015, rising against the wind and skyrocketing. On September 14, 2016, the domestic titanium dioxide industry leader Yan Lilian and Longyan Titanium successively announced price increases. Since 2016, the tenth wave of Chinese titanium dioxide price increase has been officially settled. The improvement of the supply and demand relationship in the domestic market and the overall improvement of the export market are the key to supporting the Chinese titanium dioxide industry's crazy upward movement in 2016.

On September 14, 2016, the domestic titanium dioxide industry leader, Lililian and Longjing Titanium, announced that they raised their rutile titanium dioxide prices, which raised 500 yuan/ton for domestic customers and US$50/ton for international customers. Considering that Shandong Dongjia, Jinpu Titanium, Jinan Yuxing and other domestic first-line titanium dioxide manufacturers have also raised prices in early September, the collective price increase of Yulilian and Sichuan Longjing means China since 2016. The tenth wave of titanium dioxide has been officially launched. Since the beginning of January this year, since the beginning of January 2016, the crazy growth of China's titanium dioxide industry has successfully raised the domestic rutile titanium dioxide price of about 4,500 yuan / ton, an increase of nearly 50%.

Under the “moderate growth” development model of China's economy in 2016, China's titanium dioxide industry has swept the gloom of 2015, rising against the wind and skyrocketing. The reasons for attribution are mainly as follows:

1. Supply and demand improvement

After entering 2016, China's new real estate policies have been frequent, and successive policies such as lowering interest rates, lowering down payment, and adjusting the provident fund have all played a good role in stimulating the Chinese property market. According to the National Bureau of Statistics, from January to August 2016, the sales area of ​​commercial housing in China reached 875 million square meters, a year-on-year increase of 25.5%; the newly started housing area was 1.068 billion square meters, an increase of 12.2%. In addition, the automobile industry has also achieved good results this year. According to the data of China Automobile Association, China's automobile production and sales in the first half of 2016 were 12.8922 million and 12.829 million, respectively, up 6.47% and 8.14% year-on-year, respectively. Increased by 3.83 percentage points and 6.71 percentage points.

The collective march of the two major terminals of the titanium dioxide industry has undoubtedly played an excellent role in boosting the demand for titanium dioxide. On the other hand, due to the low historical background of the industry in the second half of 2015 and the more stringent environmental review, the market supply of Chinese titanium dioxide in 2016 has decreased. It is understood that the production of titanium dioxide in China is reduced. Among the top ten companies, more than half of the companies including Longyan Titanium, Yulilian, Shandong Dongjia and Ningbo Xinfu have reduced production in 2016.

Under the circumstance, the serious imbalance between supply and demand in the Chinese titanium dioxide industry has been greatly improved, which has become the primary factor supporting the price increase.

2, exports continue to be good, business stocks worry-free

Due to the continued depreciation of the renminbi and the increasing emphasis on the export market by domestic titanium dioxide enterprises, the export volume of Chinese titanium dioxide since 2016 has shown a comprehensive trend. According to China Customs statistics, from January to July 2016, China's export volume of titanium dioxide reached 445,576 tons, an increase of 27.48% year-on-year, reaching an all-time high. Exports to Europe and the Middle East all achieved a year-on-year growth of more than 50%. . In terms of enterprises, the export volume of many first-tier Chinese titanium dioxide enterprises, including Sichuan Longjing and Henan Yulilian, also achieved an increase of about 30% year-on-year.

On the basis of the obvious increase in domestic demand, the continued positive performance of the export market has further accelerated the shipment speed of Chinese titanium dioxide enterprises. The production and operation of maintaining low inventory is an important factor for domestic titanium dioxide enterprises to dare to raise prices frequently.

Regarding the market outlook, as China's titanium dioxide market is still in the “Golden September and Silver 10” and the fundamentals of market supply and demand balance remain, domestic Titanium dioxide producers are still likely to push another wave of price increases in October. . However, after entering November, considering that the Chinese titanium dioxide market will be transferred from the peak season to the off-season, the continued increase in the price end is also likely to stimulate the industry's operating rate increase, when the Chinese titanium dioxide price will have a large decline.