The hottest titanium dioxide raised its price for

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Titanium dioxide has raised its price for the eighth time in the year, four individual share rocket launches

titanium dioxide has raised its price for the eighth time in the year, four individual share rocket launches

July 7, 2016

[China paint information] on July 6, titanium dioxide industry leader longmang Titanium Industry issued a price adjustment announcement, which is one of China's large chlor alkali enterprises. From now on, the price of rutile titanium dioxide will be increased by no more than 800 yuan/ton for different domestic direct customers, International customers raised the price by $80/ton. On the 5th, Guangdong Huiyun titanium announced an increase of 500 yuan per ton of rutile titanium dioxide. This is the second price increase of titanium dioxide enterprises at home and abroad this year, and the eighth price increase of titanium dioxide this year has been established

according to China Securities, titanium dioxide has experienced continuous rise since the beginning of the year, and the price has increased by more than 20%. The industry's high outlook comes from the support of the downstream market. The new construction area of real estate and car sales data this year show that demand continues to pick up. At the same time, the supply side is also resonated by multiple factors, including the shutdown of overseas production capacity, the elimination of backward production capacity at the domestic high standard of environmental protection, and the improvement of industry integration. In addition, the price of titanium concentrate, the raw material in the upstream, has continued to be strong. Recently, Panxi mine has been shut down more due to environmental pressure, the ore source is tight, and the price increase is large, which also supports the price of titanium dioxide in the downstream

Great Wall Securities pointed out that in 2015, the total capacity of titanium dioxide in China was 3.6 million tons, the output was 2.32 million tons, and the capacity utilization rate was 63.91%, which was not high. In the case of industry recession, industry integration slowed down, and the introduction of relevant environmental protection standards raised the threshold of industry access. Bailian acquired Sichuan longmang, ranking among the top four in the world. The concentration of the top three titanium dioxide enterprises in China is 24%, and the industry concentration will be further improved, and the leading enterprises will benefit. Since 2016, major international manufacturers have started to raise the price of titanium dioxide; Driven by leading enterprises, domestic manufacturers have also followed the adjustment to increase the price of titanium dioxide, which has experienced seven increases before. One of the reasons for the recent price rise is that the current titanium dioxide price is at a historical low, falling below the cost line of many enterprises, and enterprises have the incentive to increase prices. It is estimated that for every 1000 yuan/ton increase in the price of titanium dioxide, the EPS of Bailian, anada, CNNC titanium dioxide and Jinpu titanium industry will increase by 1.10 yuan respectively. This cycle consists of two isothermal processes and two adiabatic processes, which are 0.33 yuan, 0.33 yuan and 0.10 yuan

Zhongyuan Securities believes that since this year, domestic titanium dioxide giants have continued to raise prices. With the continuous rise of titanium dioxide prices, corporate profits have recovered, and the industry boom has begun to pick up. This round of titanium dioxide price rise is mainly caused by the contraction of production capacity of titanium dioxide enterprises at home and abroad and the improvement of supply and demand pattern. With the advance of supply side reform in China's titanium dioxide industry and the acceleration of industry merger and integration, the supply and demand pattern of the industry is expected to be further improved in the future. Benefiting from the recovery of the real estate and automobile industries, I went to domestic colleges and universities to consult experts before I was born; Without technicians, domestic demand is also expected to resume cutting off power supply growth, and the recovery of titanium dioxide exports is expected to further drive domestic demand for titanium dioxide

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