International giants take the lead in reducing production to control domestic operating rates
At the end of last year, Huntsman shut down production capacity of 100,000 tons/year, the Teno titanium dioxide production line dropped by 15%, and Chemo reduced 150,000 tons/year of titanium dioxide production capacity. Later, domestic companies also rapidly cut production or chose to stop work at this time. In order to reduce losses and adjust market prices, in particular, there has been a decline in total industry-wide production for the first time since 17 years from 1998 to 2015. The domestic operating rate has gradually dropped from 70% to about 50% since June 2015, a drop of about 20%.
Nine consecutive increases in international recognition of production reduction and quality tend to be reasonable
In the case of a weak market and industry-wide losses, domestic titanium dioxide enterprises have improved their quality and market, their products have been recognized by the international market, and their export volume has been continuously improved. Enterprises have consciously reduced the production rate, and titanium dioxide social inventories have been declining. The market supply of white powder is gradually tightening. By the beginning of 2016, the stock market of titanium dioxide has almost bottomed out, and the situation of oversupplied supply has further promoted the market price of titanium dioxide to increase rapidly. At present, the inventory of titanium dioxide manufacturers is still at a low level, and the stock of nine titanium dioxide continues to rise. Reasonable market price.
With the implementation of the "Titanium Dioxide Powder Product Energy Consumption Limit" Standard, the introduction of the Titanium Dioxide Clean Green Production Regulations, the implementation of a number of national policies such as super-environmental "oversight", and the implementation of a series of measures such as the merger and reorganization of the titanium dioxide industry. , "China-made titanium dioxide" and a representative Korean anti-dumping victory have greatly increased the popularity of titanium dioxide in China. For China's titanium dioxide industry, "injury can not afford" has become a historical, 13th five-year start, "nine consecutive up" tends to be reasonable, suitable for the market rules into the turbulent upward channel.
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