360,000 tons of capacity closed! Environmental protection led to the Panzhihua 8 titanium dioxide enterprises to stop production, titanium white powder supply shortage caused price increases

China Coatings Online News Information:High-tech Industrial Development Zone of Panzhihua-Titanium was exposed by CCTV for stealing waste water from the Jinsha River. Sichuan Provincial Environmental Protection Department and Panzhihua Municipal Government jointly carried out environmental inspection of Panzhihua titanium high-tech industrial park enterprises, has stopped production and rectification of 28 enterprises, including 8 titanium dioxide enterprises and some titanium refined ore manufacturers.
environmental protection led to Panzhihua high-tech park titanium dioxide enterprises to stop production, titanium white powder supply shortage caused price increases. According to Baichuan information data, the shutdown involves a production capacity of about 360,000 tons, accounting for about 10% of China's current titanium dioxide production capacity, accounting for about 9% of the country's total output. Panzhihua titanium white powder enterprises stop production led to the supply of titanium white powder more tight, domestic enterprises have raised the price of titanium white powder, including the leading enterprises in December 6 announced to domestic customers to increase the various types of titanium white powder 1000 yuan / ton, to international customers to increase 150 dollars / ton, after the price increase of more than 15,000 yuan / ton.
prices of titanium dioxide are expected to rise in the long term as the supply-side reforms overlay environmental barriers. We believe that the price of titanium dioxide caused by the environmental shutdown of Panzhihua is only a short-term catalyst for the price increase of titanium dioxide in this round. In the long run, benefiting from supply-side reform and environmental protection threshold, the future growth rate of titanium dioxide production capacity is only about 3%, the growth rate of demand is about 6%, the supply and demand pattern of titanium dioxide industry will continue to improve, titanium dioxide prices are expected to continue to rise.
prices of titanium dioxide continued to rise as rising raw material prices overlay strong overseas demand. The price of titanium ore (TiO2>50%) in Sichuan Province, the main supplier of raw materials, has risen by 570 yuan/tonne to 1100 yuan/tonne (excluding freight) since the beginning of the year, up 108%.
at the same time this year, overseas demand is strong, from January to October 2016 China's total exports of titanium dioxide 595,000 tons, an increase of 34.4% year-on-year. Rising raw material prices superimposed on strong overseas demand to support the continued rise in the price of titanium dioxide.
。