The price of raw materials for coatings has been rising again and again.

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raw material prices have been a long-standing topic, as of January 2017 through a total of 16 price increases, cumulative increase of more than 80%, of which the phase of the situation of insufficient supply. As an important coating material, at the beginning of 2017
Titanium dioxide
suppliers once again announced price increases, for many years has not been a series of price increases?
prices of raw materials
between the rise and fall
1993-2002, titanium dioxide industry experienced a decade of price stability. The market price of gold-redstone titanium dioxide is between 15,500-16,500 yuan per ton and the sharp titanium-type titanium dioxide is between 10,800-11,500 yuan per ton. During this period, the domestic titanium dioxide industry is mainly dominated by several state-owned enterprises, the total annual output of about 400,000 tons. Industry profits have maintained a good level. After 2003, private titanium dioxide enterprises have been building and put into operation, due to the continued growth of demand in downstream industries, titanium dioxide prices to 2007 to maintain a basic stable level. Since then, market prices have fallen since 2013 after prices rose and fell in 2008, prices rebounded between 2009 and 2010, and several price fluctuations between 2011 and 2012.
why the price increase
1, the industry profits fell sharply
from 2013 to 2015 prices all the way down, titanium dioxide industry profits fell deeply, on the verge of self-help. It's not so much a price increase as a return to value and price.
, the concentration of resources highlights the gap between supply and demand
China has about 35% of the world's titanium reserves, of which 85% are concentrated in Panzhihua, while the Pansteel Group has 80% of the titanium reserves. The adjustment of industrial institutions has led to a tightening of the outflow of titanium ore and a change in the supply and demand of raw materials for the production of titanium dioxide.
, environmental regulations to push up costs
most of the domestic titanium dioxide production capacity is the "sulfuric acid method" process, in order to meet environmental standards emissions, the need to increase the cost of three waste treatment. Under the increasingly stringent environmental regulations, the treatment cost of the sulfuric acid titanium dioxide plant will increase by about 3,000 yuan/ton. And no one will dare to take risks in a "price war" at the expense of environmental protection.
, international market demand to increase the contradiction between supply and demand
also due to environmental factors, foreign titanium dioxide production capacity is constantly closed. In August 2015, Chemours announced the closure of its 300,000-ton-a-year titanium dioxide plant in Dover, and Huntsman closed its 50,000-ton-a-year production line in the United States. Large quantities of titanium dioxide orders have poured into China. In the early stages, China exported about 400,000 tons of titanium dioxide annually and imported about 200,000 tons, but in the first 11 months of 2016, China exported 650,000 tons of titanium dioxide and imported 130,000 tons, equivalent to nearly 300,000 tons of new exports. This has increased tensions between domestic supply and demand.
see where the "ceiling" of the price is, we'll see in 2017.