Development Prospect and Market Supply and Demand Forecast of China Titanium Dioxide Industry in 2017

Global demand in 2016 is about 6.1 million tonnes, with consumption concentrated in Asia, Europe and the Americas. The apparent consumption of titanium dioxide in China increased from 770,000 tons in 2005 to 2.48 million tons in 2016, corresponding to about 11.2% of GAGR. The output of the same period increased from 700,000 tons to 2.6 million tons, corresponding to about 12.7% of GAGR. Demand growth, and the growing importance of the export market.

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At present, the United States, the European Union and other regions of the real estate industry has been warmer, the US new home sales have been restored to the pre-2008 level of economic crisis, the EU 27 national construction output rebounded slowly from the bottom of 2012; domestic, with the real estate industry boom gradually picked up, Titanium dioxide industry, the overall demand has rebounded significantly, and plastic and other downstream areas are still increasing demand, is expected to maintain a steady growth in the long term.

Since 2013, China has about 30-40 million tons of production capacity to gradually withdraw from the market, the current domestic production capacity has dropped to 3 million tons; the other hand, industry mergers and acquisitions are continuing, since 2014, domestic and foreign enterprises have accelerated The pace of mergers and acquisitions, market concentration to further enhance. Since the rebound in demand since 2016, the real operating rate of the industry gradually rose to 75% -80% level, micro, Bai Li Lian and other leading enterprises in recent years to maintain the status of full production. On the other hand, the future of the global capacity of new titanium dioxide production capacity is relatively controllable, by 2017 the new global production capacity of about 500,000 tons, of which the domestic added about 310,000 tons.

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Since 2016, with the overall situation improved, titanium dioxide prices continued to rise. May 8, 2017, Huntsman once again announced the global price increase of about 250 US dollars / ton; the current domestic rutile market in East China market price of 19,800 yuan / ton, compared to 2016 early 10,500 yuan / ton low Nearly doubled. This year, affected by environmental remediation, domestic titanium concentrate prices continued to rise, compared to 2016 early low price rose more than 200%.

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