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    Home > Coatings News > Paints and Coatings Market > The huge inventory of production enterprises will restrain the price rebound of titanium dioxide

    The huge inventory of production enterprises will restrain the price rebound of titanium dioxide

    • Last Update: 2021-09-21
    • Source: Internet
    • Author: User
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    From the perspective of the cost of titanium dioxide, there is little room for price drop at present
    .
    At present, the market price of rutile titanium dioxide is about 11,000 yuan/ton, and the price of some titanium dioxide has fallen below 10,000 yuan, reaching the lowest point in the past ten years
    .


    In such a large environment, the development of large enterprises and large groups with international competitiveness is a national strategy proposed by our country in the 1990s
    .
    To measure whether an industry has entered the era of large enterprises, the proportion and role of large enterprises in the industry are extremely important indicators
    .


    The production cost of most domestic enterprises is about 10,000 yuan/ton, and the cost of large enterprises with obvious resource advantages is about 8,000 yuan/ton.
    In the case of such a sad market price, the later production will definitely follow market price fluctuations
    .
    Based on this calculation, the vicinity of 10,000 yuan/ton is an important pressure point for the rebound in the price of titanium dioxide
    .


    The high inventories of manufacturers inhibited the rebound in the titanium dioxide market
    .
    At present, the inventory of production enterprises is generally high, and there is a historical abnormal inventory ratio.
    The "zero inventory" adopted by downstream end users has caused the transportation cost of titanium dioxide enterprises to increase.
    The reason for the low social inventory is the sad market situation, dealers Can not purchase goods rashly, the inventory pressure is all in the production enterprises, therefore, the production enterprises can only "price reduction promotion" to maintain cash flow with the production and huge inventory, objectively this will inhibit the rebound of titanium dioxide prices
    .


    Under the new normal of the economy, large titanium dioxide companies want to grow from large to strong, whether it is from the R&D and transformation of technological achievements or from the innovation of business models, they are inseparable from the promotion of the capital market
    .
    In particular, large enterprises already have rare market resources and foundations.
    On the road to becoming stronger, they must play a leading and leading role in the capital market, lead the entire industry, and attract more abundant capital investment
    .


    The low peak season is difficult to boost the fundamentals of the titanium dioxide price market
    .
    There is no new growth point in the market
    .
    It is reported that the overall growth rate of the coatings industry in the first half of this year was only 0.
    9%, which was the first time and was much lower than the already slowed GDP growth rate; the growth rate of output and output value was in a downward trend, and other industries were also under downward pressure from the general environment.
    Failing to take care of themselves, the chemical market is generally weak
    .
    Affected by the cost support and the negative atmosphere in the market of related industries, the titanium concentrate market has plummeted, and the stagnant real estate-related coatings industry can hardly give a boost to the weak fundamentals of titanium dioxide
    .
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