The hottest overcapacity competition intensifies C

2022-09-20
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Overcapacity competition intensifies, and China's titanium dioxide industry or collective price reduction

overcapacity and chaotic competition have become a haze over the titanium dioxide industry. Titanium dioxide is experiencing the longest downward price cycle in the history of the industry

recently, Sichuan longmang Titanium Industry Co., Ltd., a leading enterprise in titanium dioxide production, lowered the price of titanium dioxide again, with the quotation reduced from 17500 yuan/ton to 17000 yuan/ton, and the actual transaction price decreased from 1.5 yuan/ton to 14500 yuan/ton. Some analysts predict that the reduction in the price of titanium dioxide in dragon Python may trigger a new round of price cuts in the industry

industry leaders took the lead in reducing prices

the data shows that there are also serious safety hazards. From January this year to now, the price of domestic rutile titanium dioxide has decreased from 16800 yuan/ton to less than 15900 yuan/ton, a decrease of 5.37%. At this time last year, the price of titanium dioxide was at a high level of nearly 20000 yuan/ton. In one year, the price of titanium dioxide decreased by 19.25%

investigating the reasons for the price decline, some analysts believe that at present, the high inventory of many titanium dioxide manufacturers has become the direct reason for the price reduction of products, but the most fundamental reason is the weak demand

nearly 60% of domestic titanium dioxide products are used in the coating market. Due to the continuous regulation and control of the real estate market by the state, the coating market has also been affected, which has become the main reason for the sluggish demand for titanium dioxide. In addition, the weak recovery pattern of the macro economy has failed to provide strong support for the demand side. It is expected that if the price reduction wind of the industry continues further driven by the Dragon Python titanium industry, more and more small and medium-sized manufacturers will stop production or even withdraw from the industry

longmang titanium industry is a company controlled by longmang group. At present, it has formed a production capacity of 200000 tons of rutile titanium dioxide. It is the largest specialized multi variety titanium dioxide production enterprise in China. It is understood that the output of dragon Python titanium industry reached 180000 tons in 2012, ranking first in the industry for two consecutive years. Although the global titanium dioxide pricing power is not in China, within the scope of the Chinese market, dragon Python is the main price reference standard for all manufacturers

the main demand of the international titanium dioxide market is high-end products. Overseas giants such as DuPont, Huntsman and Ishihara have completed their basic monopoly on the global market. Industry insiders believe that domestic titanium dioxide exports to the international market still have no price advantage. To cope with international competition and truly compete with overseas giants, we should focus on improving product quality, brand and consumption scale

insiders believe that durability is the advantage of the experimental machine itself. If China's titanium dioxide technology is not upgraded and the product quality is not improved, the enterprise concentration is still so low. In the future market competition, it will not only be unable to share the high-end market, but also encounter a more severe situation that can also be used for the compressive strength experiment of other non-metallic materials

overcapacity competition intensifies

2 high elasticity before 2010, titanium dioxide was still an industry that did not attract attention, but in October 2010, the export volume of titanium dioxide exceeded the import volume for the first time, and this market began to influx a large number of participants. According to the analysis of insiders, the whole industry does have the problem of overcapacity: last year, the domestic demand for titanium dioxide was about 1.8 million tons, while the production capacity was nearly 4million tons, equal to half of the production capacity was idle

the domestic titanium dioxide market pattern is chaotic, the industry access threshold is low, and the phenomenon of overcapacity is prominent. However, the overcapacity of titanium dioxide in China is actually the surplus of low-end products, especially the small-scale production of low-end products to occupy the market. It is expected that the current titanium dioxide production enterprises will be shut down by 20% in the next one to two years. With the national rectification and policy control of the industry and the natural elimination of the market economy, the actual output of titanium dioxide is expected to be adjusted to a reasonable level in the future

in the face of overcapacity and serious homogenization in the domestic titanium dioxide market, and the market demand is still weak, the price decline of titanium dioxide is an inevitable trend. To this end, industry insiders suggested that only by strengthening R & D and innovation, and improving product quality and brand awareness, can China's titanium dioxide enterprises get out of the dilemma

however, the relevant personnel of dragon Python Sales Department said that the company's titanium dioxide follows the market, and the price fluctuation is the company's emergency behavior. Different companies have their own characteristics, such as output, inventory, customer structure, etc. Although the company is the leader in the industry, due to the different uses of titanium dioxide with different indicators, and the manufacturing process and customer structure between various manufacturers are different, the price reduction of dragon Python may not have an impact on other manufacturers

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