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However, the price increase from the market has proved to be useless for numerous times. If accumulated at a cumulative price of nine times, rutile titanium dioxide should be around 14,000 to 14500 today.
However, in fact, about half of the nine major price increases in the rutile titanium dioxide plants are bluffing. According to the current transaction prices, the bulk of customers are around 12,000, and 11,500 are common occurrences.
As for export trade orders, it is still far below the domestic transaction price of about 100 US dollars.
This situation is caused by the fact that the domestic titanium dioxide production capacity is much larger than the actual consumption. By 2015, the actual production capacity of titanium dioxide in China will reach 3.5 million tons. The actual spending power is only about 2.6 million tons.
In addition, as much as 80% of domestic rutile is used in the low-end latex paint industry, resulting in repeated production and no differential production.
The final result is that domestic companies have waged price wars, resulting in unprofitable competition. Then companies blindly expand their production capacity, intending to use scale to pull low costs and maintain their advantages. The outcome today is that everyone has no profits, low-cycle competition, and wasted a lot of resources and funds.
In February and August, the traditional off-season of the titanium dioxide industry was originally used. The major foreign purchasers, Western buyers and related downstream production companies basically have a rest. They have to go to work until the beginning of September, and only in the last quarter of September after mid-September. Order. Then they put Christmas at the end of November and early December. In the domestic market, the weather is hot, and the decoration and construction industry has also entered the vacation mode. Related coatings and other supporting companies have also switched to rest mode because they have no orders. Therefore, titanium dioxide is the weakest at this time.
Although titanium dioxide had risen nine times in the first half of this year, the last time the feeble price hike was in early August, in fact, titanium dioxide companies have seen the crisis. Many titanium dioxide companies have begun to take measures to reduce production insured, that is, reduce production, to ensure that prices do not fall. Some big traders started to release their goods at the end of July. At present, a large amount of traders have used rutile titanium dioxide even for around 11500 to 11600.
To sum up, although titanium dioxide companies are unwilling to let prices fall and do some related price protection measures, the economic downturn is actually affecting the entire world.
If titanium dioxide companies can work together to maintain the price at the current level, has been insisting on the arrival of domestic and foreign purchase season in mid-September, then titanium dioxide also has one or two rounds of power and space.
If there is a large titanium dioxide enterprise, because the inventory is too high, financial pressure is too large, and the public price cuts begin, then the days of titanium dioxide prices will be released in mid-August, when the second half of the titanium dioxide market It will be very tragic and its impact will even continue until February and March 2017.
In 2016, although the economy was in a sluggish economy, the titanium dioxide industry reduced production by 400,000 tons abroad, and reduced inventory and production preparations before and after the Spring Festival, resulting in strong foreign trade exports that drove the price of the entire titanium dioxide, plus man-made As a result of hype, China's titanium dioxide has been rising for nine consecutive days.