Industry operating rate increase
In the second half of 2008, due to the severe impact of the economic crisis, the downstream market shrank sharply. As a result, the inventory of titanium dioxide enterprises continued to increase and prices continued to decline. The production and operation of all enterprises were in trouble. At one time, 20% to 30% of the factories were in existence. Discontinued or semi-discontinued, including anatase products
All losses, rutile products companies' profits have fallen sharply or even lost.
At the end of 2008, the titanium dioxide market began to change gradually, product sales turned around, and the backlog of products in the enterprise was gradually digested. At the beginning of 2009, this trend became more apparent. Enterprises that were once suspended or semi-discontinued resumed production, and the operating rate of the industry gradually increased. From May to June, in addition to China Nuclear Huayuan and Hengyang Tianyou Chemical, all enterprises in the industry and above the scale of production resumed production. The above two enterprises also started part-time in the third quarter. The operating rate of the whole industry has increased to 80% to 90% in the second to third quarters.
Market capacity expansion
Under the favorable macroeconomic policies of the state, the automobile, transportation, real estate and other industries, which are the pillar industries of the national economy, have recovered rapidly and presented a strong economic pulling effect. The launch of several national key projects has further promoted building materials. Paints and other industries closely related to titanium dioxide are picking up.
From January to February 2009, the titanium dioxide market rebounded slightly. All enterprises were busy with shipping and production. The sales volume and output were significantly expanded. The products involved were mainly anatase. The rutile products from March to April also showed similar conditions.
The main reasons for the market recovery are as follows: 1 circulation and end-user replenishment of inventory. Due to the market downturn, in the early stage of circulation, trade and downstream enterprises, in addition to the consumption of stocks, most of them did not rush to purchase goods, and they took a wait-and-see attitude toward the market. At the beginning of the year, the price of titanium dioxide fell into a low point, so it actively purchased goods, and some stocks hoarded and formed. Signs of tension at the moment; 2 demand for downstream industries such as building materials and coatings expanded; 3 internationally, sulfuric acid products are relatively tight, and domestic products are significantly enlarged due to cost advantages.
Between the 2nd and 3rd quarters, the trend of the titanium dioxide market turned better than the 1st to 2nd quarters. The main factor was the increase in the capacity of the downstream terminal market.
Product prices slowly pick up
When the market was in a downturn in 2008, the price of anatase products was generally around 8,000 yuan t, and the low price was only about 7,000 yuan t; the price of rutile products was 11,000 to 12,000 yuan, and some were even lower than 10,000 yuan, and the market price was a record. low.
Between January and February 2009, with the increase of market capacity, the price of the products also stabilized and stabilized. The anatase products were stable at around 8,000 yuan, and the price of rutile products was between 11500 and 12,000 yuan.
In the second quarter, as the market situation improved further, the prices of anatase and rutile products increased slightly. From May to June, the price of anatase products rose to 8,000-9000 yuan, and the price of rutile products was 12,000-12500 yuan. In the third quarter, the momentum of this small (200-300 yuan t) recovery continues. [The price mentioned above refers to the delivery price (ex-factory price) after the transaction, excluding transportation and handling charges on the way. ]
The main factors for the rebound in the price of titanium dioxide products in the second quarter of 2009 were the expansion of market capacity and the rebound in prices of raw materials (titanium ore, sulfuric acid). In addition, the continuous price increase in the international market has also played a role in boosting the price of domestic titanium dioxide products.
Smooth supply of raw materials, improved profitability of enterprises
From January to June 2009, the market supply of titanium concentrate, one of the main raw materials for titanium dioxide, was relatively sufficient. The import volume decreased by 55,000 tons, a drop of nearly 10%. However, due to the increase in domestic production, there is no shortage in the market. phenomenon. The supply of titanium slag is also relatively stable.
The balance of supply and demand in the market is the premise of stable price. Although the import of mines is due to the increase of shipping costs, the price of mining is slightly increased due to the limitation of railway transportation capacity, but the range is very small, only tens of yuan. The price of titanium slag is also relatively stable. From June to July, the tax price of titanium ore in East China is between 1000 and 1100 yuan, and the ex-factory price of titanium sulfate residue is between 2000 and 2300 yuan.
In addition, the price of sulfuric acid, another major raw material for titanium dioxide, has remained stable and depressed. Although some areas rebounded slightly from May to June, the magnitude was small. Due to the difference in production process, the prices of sulfuric acid, pyrite acid, and metallurgical flue gas vary greatly, ranging from less than 100 yuan t to high and 200 to 300 yuan t, but they are all low prices in recent years. .
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