Multiple factors favor the titanium dioxide industry in 2013

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China Drying News Ltd. Titanium Dioxide is considered to be the best white pigment in the world. It is widely used in coatings, plastics, paper, printing inks, chemical fiber, rubber, cosmetics and other industries, and its price has been rising and falling. At present, the contradiction between supply and demand in domestic titanium dioxide market continues to drastically evolve. In 2013, the overall domestic titanium dioxide price will continue to rise significantly.

As of the close of the stock market on December 28th, the titanium dioxide concept stocks (Ananda, Yanli Lian, CNI Titanium Dioxide and Panzhihua Steel Vanadium Titanium) recently rebounded from the broad market on December 4 and the overall increase reached 32.46%, far exceeding the Shanghai Composite Index of 13.95. %, Shenzhen 17.07% and 16.72% of the rebound rate of the small board, including ST uncap stocks in the nuclear titanium dioxide ranked highest with 45.94%, the lowest was Annada, an increase of 18.87%. Annada reached a peak of 9.1 yuan from the lowest point on November 30 to 6.71 yuan after the rebound on December 27, with the highest increase reaching 35.6%, which is far stronger than the rebound height of the large-cap stocks by 13.11%.

The stock market is a barometer of the market, and the rise in titanium dioxide concept stocks reflects the favorable trend in the titanium dioxide industry. The multiple factors at home and abroad will lead to rapid growth in the demand and price of titanium dioxide.

Global demand for titanium dioxide is gradually warming up

The financial crisis that started in 2008 led to a temporary reduction in demand and the global production capacity of titanium dioxide was reduced. However, the demand for titanium dioxide in downstream real estate, automobile and other industries has not been affected by the financial crisis, and the market's rigid demand for titanium dioxide continues to increase. Since the beginning of June of 2012, the continuous reduction of production capacity by titanium dioxide producers has led to a significant reduction in inventories. With the European and American economies beginning to recover, the international demand for titanium dioxide in 2013 will inevitably boost prices. Tronox chief technology officer publicly stated that due to continued supply shortages, especially the cost of raw materials for ore, the price of titanium dioxide in 2013 will increase by 15% to 20%.

Domestic multiple positive factors

At present, China's titanium dioxide production scale or actual production has become one of the most important forces in the world's titanium dioxide industry, and this growth momentum will continue. According to statistics from the China Coating Industry Association Titanium Dioxide Industry Sub-Committee, in the next five years, China's mainland titanium dioxide production capacity will increase from 1.5 million to 2 million tons, including 300,000 to 500,000 tons of chlorination titanium dioxide, and the total production capacity in 2015 will reach 370. 10,000 to 4.1 million tons. Titanium dioxide has good development prospects.

The recovery of China's housing market in the second half of 2012 has been gradually confirmed, and a good situation has been witnessed by rising prices and prices. The indirect live coating market and the titanium white market are gradually picking up. Since May in Panxi, there has been no rainfall and a small amount of rainfall, resulting in continuous shortage of industrial water in the area. Affected by this, a large area of ​​titanium ore concentrate processing plant was stopped production, and raw materials of titanium concentrate were out of stock, and the price rose.

In terms of policies and environmental protection, the state has explicitly proposed to increase environmental protection investment and law enforcement efforts, encourage the joint production process of titanium dioxide clean production process, encourage the recycling of waste resources, the development and utilization of the economy, eliminate heavy pollution production process. The government has restricted the introduction of more serious environmental pollution policies. Environmental pressure has helped high-quality listed companies improve their profitability.

Titanium dioxide prices rise due to tight supply of raw materials

About half of China's raw titanium is imported. With the traditional peak season of construction and real estate industry, the demand for coatings and plastics is strong, resulting in a sharper supply of titanium raw materials. Vietnam promulgated a decree on July 1, 2012 that banned the export of titanium ore and had some impact on the titanium dioxide enterprise in China. As global supply of titanium dioxide is in the hands of the top five foreign suppliers and raw material prices rise, the strong bargaining power of the top five manufacturers can shift the cost to the downstream, which will lead to a significant increase in the price of titanium dioxide in the coming years. Driven by the external disk prices, the domestic titanium dioxide market is expected to rise strongly.

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