Titanium dioxide off-peak season analysis: influencing factors increase, off-peak season is more blurred

The traditional titanium dioxide market has low season, in general, every year from June to August and every year from December to February for the low season, the annual spring and autumn season for the traditional peak season. Prior to 2015, the traditional low season differentiation of the titanium dioxide market is still relatively obvious, by the international and domestic environmental impact, from 2015 onwards, China's titanium dioxide market traditional low season distinction gradually blurred.
export share gradually expanded, the market in the off-peak season by international factors increased
China is a major exporter of titanium dioxide
China
. China's surrounding developing countries real estate industry is developing rapidly, the demand for architectural coatings is in a rising period, the demand for titanium dioxide increased year by year, but these countries themselves titanium dioxide production capacity is limited, insufficient production, most of the titanium dioxide is dependent on imports. And China's main production of titanium dioxide sulphuric acid mainly, not only geographical advantages, and price advantage is more obvious, so China has become the surrounding developing countries titanium dioxide major importers, to resolve some of China's excess capacity of titanium dioxide, the average price of titanium dioxide than in previous years has increased.
Affected by the domestic environment, the low season distinction is not obvious
market demand growth, product prices rise, titanium dioxide market low season is difficult to distinguish
According to statistics, in 2017 the national scale of the total output of coating enterprises 20.41 million tons, an increase of 7.43% year-on-year, and since 2002, paint production continued to grow positively, driving the domestic demand for titanium dioxide significantly exceeded expectations. Architectural coatings is the largest downstream market of titanium dioxide, consumption accounted for more than 60%, and new housing after sales decoration has a lag period of more than one year, belongs to the real estate post-cycle industry, the current Chinese real estate market continued for many years of hot situation, although in recent years increased the intensity of regulation, but still a large extent led to the growth of titanium dioxide demand market.
environmental factors, market supply and demand changes affect the low season of titanium dioxide
In recent years, affected by the domestic environmental protection situation, titanium dioxide production costs continue to increase, environmental expenditure increased. As a high-polluting industry of titanium dioxide, many times ushered in production stoppage or production restrictions, resulting in the titanium dioxide market in the off-season inventory reduction or even tight inventory, resulting in low-season is not light, high prices. And its main downstream coating industry, is also a representative of the high-polluting industry, downstream by environmental factors affected by the production cut-off, resulting in the titanium dioxide market demand reduction, peak season or even low prices.
Supply-side reform, the new capacity of the sulphuric acid method is limited
affected by the supply-side reform, the new capacity of titanium dioxide by the sulphuric acid method is limited, the state encourages the development of chlorinated titanium dioxide, most enterprises are committed to the development and construction of titanium dioxide chlorinated method, but by technical barriers and capital and other aspects of the impact of China's chlorination method development is still very slow. In the transition period of titanium dioxide market process structure, titanium dioxide enterprises into an awkward situation, the technology mature sulfuric acid titanium dioxide by environmental protection and high pressure and other aspects of the impact of limited production capacity growth, production is limited, and has not yet developed mature chlorinated titanium dioxide powder has a weak heart, so that the traditional sense of titanium dioxide low season received a certain impact.
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