Titanium dioxide development prospects and supply and demand summary

At present, the real estate industry in the United States, the European Union and other regions has picked up. The sales volume of new homes in the United States has returned to the level before the 2008 economic crisis. The output of the 27 countries in the EU has slowly recovered from the bottom of 2012. On the domestic front, the real estate industry has gradually recovered. The overall demand for the titanium dioxide industry has rebounded significantly, and the demand for other downstream sectors such as plastics (8870, -40.00, -0.45%) is still increasing. It is expected to maintain steady growth in the long run.

Since 2013, about 300,000-400,000 tons of production capacity has gradually withdrawn from the market in China. At present, the effective domestic production capacity has dropped to 3 million tons. On the other hand, industry mergers and acquisitions are also continuing. Since 2014, domestic and foreign leading enterprises have accelerated. With the pace of mergers and acquisitions, market concentration has further improved. The domestic leader 佰利联 successfully completed the acquisition of Sichuan Longyan Titanium at the end of September 2016. With the completion of this acquisition, 佰利联 has a capacity of 560,000 tons of titanium dioxide, and its production capacity ranks first in the country and fourth in the world. The concentration of domestic titanium dioxide industry has further increased. Since 2016, the demand has rebounded, and the real operating rate of the industry has gradually rebounded to the level of 75%-80%. At the micro level, leading companies such as 佰利联 have basically maintained full production in recent years. On the other hand, the scale of new global titanium dioxide production capacity will be relatively controllable in the future. By 2017, the global new production capacity will be about 500,000 tons, of which about 310,000 tons will be added domestically.

Since 2016, as the overall situation has improved, the price of titanium dioxide has continued to rise. On May 8, 2017, Huntsman once again announced a global price increase of about 250 US dollars / ton; currently the domestic market price of rutile products in East China is 19,800 yuan / ton, compared to the low point of 10,500 yuan / ton in early 2016 has been Nearly doubled. Since the beginning of this year, due to the impact of environmental remediation, domestic titanium concentrate prices continue to climb, Sichuan Pangang's latest offer is 1950 yuan / ton, compared with the low point of 630 yuan / ton at the beginning of 2016 has exceeded 200%.