There are many hidden crises in the hottest titani

There are many hidden crises in titanium dioxide industry

there are many hidden crises in titanium dioxide industry

October 31, 2011

[China paint information] "In the first half of the year, the titanium dioxide market showed the hottest trend in the past 20 years. However, if more than 20 projects that have been announced can be completed and put into operation before 2015 as planned, the total annual production capacity of titanium dioxide in China will increase sharply to 4.15 million tons. Even if the operating rate of sulfuric acid method in China is 60% - 70% and that of chlorination method is 75% - 80%, the annual output of titanium dioxide will also reach 2.5 million ~ 3 million tons. In addition, the dependence on raw material imports and prices will continue to climb." The industry will face huge market risks. " Bi Sheng, director of the titanium dioxide branch of the National Chemical Industry Productivity Promotion Center and Secretary General of the titanium dioxide industry technological innovation strategic alliance, said in an interview a few days ago

"In 2011, the output of the whole industry will set a new record, reaching 1.6 million to 1.8 million tons, of which rutile products will be easy to operate more than 1million tons. The sharp increase in production capacity will greatly increase the operation risk of the industry. Due to the overheating of the economy in some regions and the phenomenon of power rationing, coupled with the various policies adopted by the state to reasonably regulate GDP, the market demand for titanium dioxide has shrunk significantly, and some enterprises have taken the initiative to adjust production and appropriately reduce production. During this period, the whole industry The operating rate of the industry is estimated to be only 60% - 70% Bi Sheng said

the titanium dioxide Market in the first half of 2011 was at its peak, which greatly stimulated the investment enthusiasm of enterprises. Anatase products have rapidly increased from 9500 ~ 10500 yuan (ton price, the same below) last year to 18500 ~ 20000 yuan, and the price has doubled; Golden red polyether sulfone, a radel stone type product advanced by Solvay in the United States, rose from 13000 ~ 14000 yuan last year to 23000 ~ 24000 yuan at the peak, with an increase of 10000 yuan. In the second quarter, when the titanium dioxide industry was at its peak, the gross profit could reach 7000 ~ 9000 yuan, and the profit level reached a historical high

in fact, this prosperity is largely caused by the unprecedented rise in the price of raw titanium ore (slag). At the beginning of 2011, the price of titanium ore was 1000 yuan, and then rose continuously to 3300 ~ 3500 yuan; Titanium slag was 3300 ~ 3500 yuan at the beginning of the year, and then rose continuously until it exceeded 8000 yuan. "The fundamental factor for the soaring price of titanium ore raw materials, especially domestic materials, is market speculation. This human factor has brought harm to the titanium dioxide industry." Bi Sheng analyzed

with the increase of production capacity, China's titanium dioxide industry is increasingly dependent on the import of titanium ore raw materials. Although compared with 3-4 years ago, the import channels of titanium ore are diversified, Australia, Vietnam and India have become the main import source countries. However, Vietnam will adopt the titanium export restriction policy in 2012, which will have a great impact on China's titanium import. While all regions are competing for large-scale projects, the problem of raw material risk has become prominent

in recent 10 years, China's titanium dioxide imports have been greater than exports. Except for the year-on-year decline in exports affected by the financial crisis in 2008, the annual export volume has remained stable or increased slightly. In 2011, while the import volume remained basically stable, the export volume has been increasing, and China became a net exporter of titanium dioxide for the first time. From January to August, the cumulative import volume of titanium dioxide in China was 174000 tons, a year-on-year decrease of 2.6%; The cumulative export volume was 279000 tons, with a year-on-year increase of 83.6%

Bi Sheng believes that according to the recent economic development at home and abroad, we will send you the detailed technical parameters of the product by fax or email. If the state has not issued new relevant policies and measures, the industry will continue to operate downward from the second half of 2011 to the beginning of 2012. Cannon has developed a special solution - jetpreg. If a new import and export policy is introduced, it is likely to be an export tax policy, which will have an incalculable impact on the whole market. Because ordinary titanium dioxide belongs to the "two high and one capital" category, it does not belong to the scope of export encouraged by the state

according to the statistics of the titanium dioxide sub center of the National Productivity Promotion Center of the chemical industry, the actual production capacity of the national titanium dioxide industry in 2010 has reached 2.43 million tons, compared with 2.3 million tons previously estimated. Since 2010, there have been more than 20 projects of production expansion or new installation in the industry, involving a comprehensive capacity of 1.72 million tons/year, and their completion plans are before 2015. In addition, there are many titanium dioxide planning projects, including the proposed chlorination project in Xin'an County, Luoyang, Henan Province, Bailian and other enterprises, as well as the 600000 ton/year titanium dioxide project invested by Sichuan longmang in Xiangyang, Hubei Province, which has just been approved. According to Bi Sheng, in more than 20 sulfuric acid projects, compared with the current units, it can only be regarded as an expansion of scale, and the products are difficult to have essential differences. He reminded enterprises that they must fully consider various potential risks when launching projects