Titanium white powder in May to continue to raise prices industry integration can be available

China Coatings network
: May 7, the company announced that from now on the
tumium dioxide
sales price on the basis of the original price of 300 yuan per ton. Shandong Dongjia and Panzhihua Tianlun Chemical also issued a price increase notice on the same day, the price increase range of 300 yuan / ton - 500 yuan / ton range. Business association titanium dioxide analyst Yang Sun pointed out that in the absence of a complete recovery in demand, titanium dioxide manufacturers mainly want to use price increases to consolidate the previous price adjustment results, consolidate the market atmosphere, enhance confidence in the market, stimulate demand, implement the rebate, while accelerating industrial chain restructuring and mergers and acquisitions.
may be the second round of price increases in 2015. Sichuan Longyu titanium industry in the first week of May announced that the whole series of titanium dioxide products increased by 300 yuan / ton, after the price increase of its whole product market price has been close to 13,000 yuan / ton. Nearly 10 producers in East China, Central China, Southwest china and other regions also rose by 300-500 yuan/tonne, and the industry's profit-es technology atmosphere was consolidated.
Yang said that although leading companies take the lead in raising prices to help other peer manufacturers buck the trend, but in view of the current market demand and the situation of goods, there are many vendors on the price increase is not optimistic. This price increase is to a large extent mainly to create a profit atmosphere, the actual transaction is still a single discussion of watching, looking at the volume, looking at the form of payment.
, Xinda Securities believes that titanium dioxide after the market price expectations are more optimistic. From the supply and demand fundamentals, China's titanium dioxide demand in 2015 can still maintain a growth rate of about 8%, demand growth of nearly 150,000 tons, exports continue to maintain high growth, net export volume is expected to increase by more than 100,000 tons. The supply of additional capacity in China is expected to be less than 190,000 tons in 2015, with the capacity utilization rate of the existing titanium dioxide unit unchanged. The price of titanium dioxide is at an all-time low, and it is estimated that the price of titanium dioxide will still rise during the peak season in the second quarter of 2015. In addition, the pace of mergers and restructurings in the titanium dioxide industry will accelerate in 2015, helping to drive up the price of titanium dioxide.
the industry demand has not yet been significantly improved, but the recent announcement of listed companies show that the industry integration screen continues to deepen. On May 6th, the company issued a notice of progress on the suspension of major matters, saying that the company's major matters related to industrial integration, the target company is Sichuan Longyu Titanium Co., Ltd. Compared with the previous industry integration, this integration can be described as the "Big Mac" and "flagship" company integration.
Yang believes that if the industrial integration between Yulilian and Sichuan Longyu can be successfully implemented, the integrated new enterprise capacity will expand rapidly. Business statistics show that the total production capacity of Sichuan Longyu and Yuli reached 610,000 tons (including the Yuli cochlorination project), the country's first production capacity, the global production capacity after DuPont, Hensmey, Coster, ranked fourth; In terms of exports, in 2014, Sichuan Longyu and Yuli jointly exported more than 220,000 tons of titanium dioxide, accounting for 39.82% of the total export volume, and its international market influence rose sharply, the brand effect is stronger, the market awareness is higher.
the integration will also enable the relevant companies to price power, voice in one. Sichuan Longyu has been in the leading position in China, but also other peer producers price trend of an important reference and coordinates. Coupled with the important supplement of the status of the listed company, the pricing power and discourse power of the domestic market are in one or the other.
that the event will also promote the restructuring and joint operation of titanium dioxide enterprises. Under the background of overcapacity, the titanium dioxide industry has entered the finishing period for a long time, and in the past two years there have been more reorganization and joint operations between enterprises, such as the acquisition of Gansu Oriental and Haup titanium industry, Cristal acquisition of Jiangxi Tianguang and so on. It is expected that the integration between companies in the industry will continue, thus promoting the development of the titanium dioxide industry in a benign and sustainable direction.