Titanium dioxide domestic market from the supply side to see market trends

Faced with the NEW Year holiday, the seventh wave of price increase in the market of titanium dioxide has left some conjecture for the market. This year, the trend of rising market prices, titanium dioxide production enterprises in a fast-paced production, the domestic production of the top few companies started The rate is almost 100%. With the improvement of the market, the national operating rate has risen. Although the profit of ton titanium dioxide is not much, it is advantageous for titanium dioxide production enterprises with resource advantages, high market share and strong core competitiveness. Figure, but for small and low market share producers, in the mainstream market of sulfuric acid rutile titanium dioxide does not break through 13,000 yuan / ton, the rationality of the market that there is a "risk", therefore, The recent national operating rate has not significantly improved rapidly, and the majority of inventories are low, resulting in the arrival of the seventh wave of high tides. However, the market demand slowed down after entering June. One is the arrival of the traditional market “light season”, and the other is the arrival of foreign holiday resort peaks or export reductions. In the later period, the country’s stock of titanium dioxide will increase, but before After the wave of six waves, traders have become more cautious in stocking and will inevitably shift inventory pressures to manufacturing companies.

When the production enterprises have high inventory levels and market demand slows down, they will return to the old topic of “price reduction.” Then when will titanium dioxide prices stabilize and enter a reasonable range? Xiao Bian believes that from the perspective of supply, in the current situation of "profits" of titanium dioxide enterprises, for some enterprises without resource allocation advantages, market competition is at a disadvantage, or even profits are reversed, it is an opportunity for transformation. It is the fact that the market is in fact forced to stop production and transformation of some enterprises in the “zombie” state. This leads to a more reasonable balance between supply and demand in the market. The market price of titanium dioxide will really stabilize, and the market conditions tend to be reasonable and stable to make the industry develop in a healthy and lasting way. .