It is imperative to give full play to the market force mechanism to reduce production capacity in the titanium dioxide industry

"De-capacity" was listed as the top of China's five major structural reform tasks in 2016
.
Low-end titanium dioxide overcapacity companies have difficulty operating.
"To give full play to the main spirit of the company, we must pay more attention to the use of market-based methods to resolve excess capacity
.
" "We will no longer expand domestic demand through investment in'strong stimulus' and'overflowing flooding'.
, And we must continue to vigorously promote the streamlining of administration and decentralization, the promotion of'mass entrepreneurship, innovation' and'Internet +', as much as possible to cultivate new kinetic energy and develop new business formats
.
" From the speeches of Premier Li Keqiang in many meetings, we can see that the country is Industries with overcapacity will not have a greater degree of policy inclination.
For the titanium dioxide industry, sulfuric acid titanium dioxide itself is a "restricted category".
Under the general environment of "de-capacity" and the market is sluggish, Therefore, it is imperative to reduce the production capacity of the titanium dioxide industry
.
? Give full play to the market force mechanism? "We must let the market play a decisive role, and allow enterprises to play a positive sense of self-competition and self-elimination
.
At the same time, we must first fully cultivate new momentum for economic development
.
" Premier Li Keqiang emphasized to resolve excess production capacity.
It is necessary to give full play to the role of the market force mechanism, and if it can be solved by market methods, it must be solved by market methods
.
The market is the touchstone to test the competitiveness of enterprises! Since 2015, the titanium dioxide industry market has continued to be weak.
The market price of rutile titanium dioxide at the beginning of the year has dropped from about 13,000 yuan/ton to 10,000 yuan/ton at the end of the year.
The mainstream quotation has almost fallen below 9,000 yuan/ton.
Although the market continues to be weak, companies have Days are like years, however, some companies are still profitable by using their own resources
.
These companies rely on resource advantages on the one hand, on the other hand, low-cost, circular economy, high-efficiency new technology, excellent management team and other comprehensive factors, so that they can still make the company full of vitality in the continuously negative titanium dioxide market.
Companies with small scale, high energy consumption, and irrational product structure are "stretched" to survive
.
? The industry takes the initiative to reduce volume and optimize inventory? During the 13th Five-Year Plan period, the production of titanium dioxide by the sulfuric acid method will be "reduced and replaced".
Enterprises that fail to meet the standards for environmental protection, energy consumption, and safety production and have unqualified production must be handled in an orderly manner according to laws and regulations.
Stop and exit
.
In this process, a batch of zombie companies and loss-making companies that have no hope of turning around will be dealt with
.
While resolving excess capacity, it is also necessary to optimize the stock capacity, which requires structural adjustment
.
? Supply-side reform is the country’s major policy during the 13th Five-Year Plan period.
The titanium dioxide industry must reduce the “quantity” and increase the “quality” in the process of resolving excess capacity, promote the upgrading of enterprise products, and accelerate the development of high-end, intelligent, and intelligent products.
The transition to green production is conducive to the healthy development of the titanium dioxide industry
.