Titanium white powder enterprise "cost squeeze" competition, finally "the leftovers are king"

China Paint Network
News: China's
tumium dioxide
industry development is basically with the national investment to expansion, "infrastructure - real estate - inflation ---de-cycle industry" macro-transmission order is consistent, titanium dioxide project production capacity construction cycle generally takes 2-3 years, Looking at the macro-operation in 10 years dimension, that is to say, 2013-2015 began to release capacity, just 2015 the market encountered nearly a decade of low demand, the past overinvestment has become a burden on the industry, making titanium dioxide enterprises debt ratio high, overinvestment, encountering insufficient demand, causing industry risk exposure. That is, regardless of whether the early radical expansion, almost all enterprises are subject to high-cost hostage, which also means that the risk of enterprises into the "cost squeeze" of the "slow knife scraping meat" deep water area. Titanium dioxide industry quickly through the "expansion - loss" cycle, now to see who can stop. At present, it has been observed that some small and medium-sized enterprises can not bear the cost pressure, has stopped standby, but this "standby" in the new normal is almost impossible to have "machine".
, China's four major cost shocks are: labor costs - capital costs - land transfer costs - environmental protection costs. The four major cost shocks are the first to be more prominent environmental costs, since 2012/13 began to work hard, environmental protection costs are rigid, and will be more and more stringent.
In the pattern of cost competition, the breakout of the titanium dioxide industry (or change, shuffle) at least three: First, cost squeeze, survival of the fittest, industry concentration increased, resulting in the "leftovers for the king." Second, high costs and external shocks, leading to industry reshuffle. Third, the regional advantage of the transport radius is strengthened, either close to the place of consumption or close to the place of raw materials. In the end, no one can escape the logic of cost competition. Switch from Demand Growth to Cost Competitiveness. The macro point of view for the future is not demand, nor inventory (in the context of overcapacity, going to inventory is only a temporary disturbance). The point of view is supply, cost. Cost, in particular, is the key to understanding the macro operation of the future! This is because capacity does not disappear out of space, and capacity phase-outs are carried out in the order of cost. Also because, overcapacity and deficiency, is a relative concept, depending on the international comparative advantages and disadvantages, if the domestic cost of an industry continues to be higher than international costs, the current beautiful capacity utilization data, the future is also reduced to "invalid capacity", and vice versa.
due to the geographical advantages of the allocation of resources, which logistics costs are too high, coupled with the requirements of the elimination of backward production capacity, to meet the new requirements of environmental protection. What meets the requirements may be the top 10-20% of the really strong large enterprises, so that the future pattern will be the production environment of large enterprises to improve, and small enterprises are more pressure to survive, facing the edge of being acquired or closed.
Titanium dioxide enterprises face such an environment, and reduce costs is so related to the survival of the "cost competition logic", small editor believes that: environmental protection from strict rigid input no one can escape, and must seriously invest. Cost reduction should focus on the "circular economy" comprehensive utilization, which is a benefit to the people, from the perspective of enterprise survival, but also to achieve enterprises to improve the core competitiveness of a way, it is understood that China's sulphuric acid titanium dioxide production of its by-product iron sulfate, titanium gypsum and other comprehensive utilization rate is still low, has not effectively found a market, high value-added development products Energy conservation and emission reduction is also from the national "titanium dioxide energy consumption standard" energy consumption advanced value has a certain distance, enterprises should open up their horizons to develop technology, it is gratifying that Sichuan Longyu Titanium Co., Ltd. took the lead in achieving the "phosphate titanium cycle economic advantage industrial chain technology system"; 0.69%) Chemical Co., Ltd. developed the "sulfur-iron titanium co-production method titanium dioxide clean production process", Shandong Dongjia Group Co., Ltd. developed the "ammonium-sulfur titanium" clean production process to achieve titanium dioxide new water unit water consumption of less than 50 tons, sewage unit displacement of 20 tons to reach the world's leading level; The rate of titanium acid solution was increased to more than 96%, the utilization rate of titanium resources was increased from about 79% of traditional processes to more than 87%, and 20% of waste sulfuric acid was not concentrated, replacing 98% of commodity ammonium sulfate products, which realized the coupling of the product chain of circular economy, and Shandong Daun Titanium industry adopted a new process of high titanium slag production, key production equipment, technical software imported from abroad, The whole line to achieve clean production and integrated operation, through industrial grafting to achieve waste use and energy recycling, technical level and product quality to international standards; Titanium slag instead of titanium iron ore for titanium dioxide production raw materials, can reduce sulfuric acid consumption, greatly reduce or even fundamentally eliminate the production of iron sulfate, can improve unit equipment capacity, reduce equipment fixed investment. It is precisely because of its many advantages, titanium slag as the basic raw materials of titanium dioxide production enterprises, has long been highly valued by domestic and foreign titanium dioxide enterprises, and has been rapid development. A series of advanced technology in China has laid the foundation for the production of titanium dioxide in China.
in the commercialization of waste by-products, enterprises in the industry have also made active exploration and achieved remarkable results. Nanjing Titanium White Chemical Co., Ltd. comprehensive use of titanium gypsum cement anticoagulant industrialization project, Guangxi Jinmao titanium industry under the leadership of Chairman Mr. Li Chengjian to pay close attention to the comprehensive utilization of waste by-products, have initially completed the use of titanium gypsum instead of natural gypsum cement recoagulant project; Sulfur-iron-titanium-calcium clean production cycle economy industry chain results are remarkable, General Manager He Mingchuan said: "According to the company's surrounding environment, we have targeted to create the industry's first waste sub-commoditized clean production and circular economy industry chain, not only to achieve zero emissions of waste by-products internal circulation, but also achieved considerable economic and social benefits." "。 Many enterprises in accordance with the actual situation in the local independent research and development to achieve energy conservation and emission reduction, has become the mainstream practice of the industry. With the improvement of environmental protection policy and the improvement of environmental protection concept level, the environmental protection situation of titanium dioxide enterprises will be significantly improved, according to local conditions, enterprises will create a clear enterprise or regional characteristics of clean production and circular economy industry chain, which is also the inevitable trend of healthy and sustainable development of the industry.
Now, in the context of excess capital, making money opportunities more and more difficult, even if the beautiful industry growth story, after 3-5 years, also can not escape the "cost competition" pattern, titanium dioxide industry itself is a slow investment industry, it should be timely from "demand growth" to "cost competitiveness" "This important level, although this switch point may be a long time, but in the global market demand continued to decline, relying on the "demand instant burst and supply bottleneck" business climate, has no continuity in the environment, supply pressure, cost competition will be a long-term proposition, in the industry to improve concentration of the new normal, the final must be "the leftovers are king."