Environmental Supervision inspects international giants to raise price of titanium dioxide

The Rio Olympic Games are going on in full swing, and "the power of the prehistoric" has frequently appeared in the network. When it comes to the power of the pre-recession, the Titanium dioxide market has so far produced a great deal of power in 2016. In 2016, the price of titanium dioxide has risen by “nine consecutive times”, and the largest accumulated titanium dioxide powder, Longquan, was 9200 yuan/ton. Titanium dioxide market average price has reached 13,000 yuan / ton (including tax) or so; it seems that price increases are ineffective, in fact, increasing doubts, first of all, domestic demand and prices are not so hot, in the process of these nine price increases The anatase titanium dioxide that can truly reflect domestic demand did not follow the price increase; however, the price increase effect of rutile titanium dioxide was not satisfactory for several times. The increase in price brought about an increase in distributor pressure and the downstream customers did not approve; The important downstream market of titanium dioxide paint industry is still in the process of recovery, the demand does not follow the pace of rising prices, then the market still has the power of the precipitous it?

This week, the most talked about titanium dioxide ring is the suspension of production. Due to G20 and environmental supervision, it is reported that from July 12th, the first batch of 8 central environmental protection inspectors went to Inner Mongolia, Heilongjiang, Jiangsu, Jiangxi, Henan and Guangxi. , Yunnan, Ningxia and other 8 provinces (districts) began to carry out environmental protection inspections, and it has now passed more than 20 days. The Central Environmental Protection Inspectorate has all thrown up strong environmental protection storms. According to information released by eight provinces (districts) in succession, as of now, there are hundreds of illegal companies and accountable persons who are investigated and punished by 8 provinces (districts). In addition, the "G20 Summit" will be held in Hangzhou from September 4th to 5th. According to the requirements of the "G20 Summit Zhejiang Environmental Protection Work Plan", Hangzhou will be strictly controlled within a radius of 300 kilometers. The specific downtime will be August 26. Until September 6. Affected by this, during the period from August 24 to September 6, large logistics trucks will be prohibited from entering Zhejiang Province, and Hangzhou will be shut down as a whole. It is reported that manufacturers have begun to arrange delivery in advance.

Environmental factors have changed the pattern of supply and demand in some markets. This week, Kenli’s environmental impact has continued to limit production by 50%. Nanjing Titanium and Jiangsu Titanium have stopped working. Some other manufacturers in the southwest have started to work in an unstable manner. The overall market utilization rate has dropped to 65. %. This week, this change has brought about effects. The anatase titanium dioxide with obvious price lag in the previous period has ushered in a turning point. This week, titanium dioxide manufacturers anatase titanium dioxide offer increased, the actual market transactions gradually increase, Guangxi UFO, Nanjing titanium dioxide, Guangxi Detian anatase titanium dioxide were raised 300 yuan / ton, anatase titanium dioxide Enter the industry line of sight.

Another focus this week was on the international market. Huntsman announced on August 10 that it will increase the price of titanium dioxide (titanium dioxide) pigments it sells globally. Effective September 1, 2016, or see other contract requirements. . Specific price adjustment plan: Europe: increase 150 euros / ton or 160 US dollars / ton; Asia-Pacific, Africa, Latin America and the Middle East: increase 160 US dollars / ton; North America: increase 0.07 US dollars / pound. The price of titanium dioxide in the international market is adjusted upwards, which favors the export trend. In recent years, the quality of domestic titanium dioxide continues to increase, coupled with price advantages, the competitiveness of China's titanium dioxide in the international market to further enhance the export volume continues to increase, statistics show that from January to June this year, a total of 348,506.326 tons of titanium dioxide exports , a year-on-year increase of 28.04%. On the basis of steady growth in the export of domestic enterprises, the increase in market prices by international giants will undoubtedly play a positive role in China’s exports and in effectively alleviating the pressure on corporate inventories. Looking back at the beginning of 2016, it was Huntsman that ignited the titanium dioxide market. “Jin 9” is coming. Does Huntsman still get a fire?

For the weak domestic demand, if we want to continue to increase prices and use the power of the pre-recession is essential, mainly relying on the export of the "stick" support, environmental protection efforts in the near future, manufacturers will not be able to release the production capacity, environmental protection, if normalized Pressure, or boost the market from the "virtual rise" to "real increase" of the transition, "the power of the pre-empty" will have the ability to endurance. In the short-term, the single-market market is still dominated by single orders, volume, and payment formats. This week, domestic titanium dioxide enterprises started to decline. Some manufacturers stopped work overhaul or on-site, the market supply decreased, the overall market inventory was limited, and supply was tighter than the previous period. The overall market demand is generally, but exports are still a reliable support, although the increase in environmental protection has a certain impact, but as a long-term policy will not have an excessive impact, but after normalization, the market will be a huge plus, the future of titanium dioxide " Real increase" market can be expected.

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