In the first half of the year, the titanium dioxide market showed a downward "V" trend, and the price fell slightly overall. Taking sulfuric acid rutile titanium dioxide as an example, the price fell from 16,000 yuan (ton price, the same below) in early January to 14,600 yuan at the end of June, down 8.59%; The lowest price was 14,600 yuan at the end of June, the highest price was 16,900 yuan at the end of March, and the vertical amplitude was 13.47%.

For the late market trend of titanium dioxide, Yan titanium Yunshang titanium industry analyst Yang Xun believes that the second half of the new production capacity increased, sufficient supply; And downstream by the economic growth slowdown, safety supervision and other factors, the overall demand is weak, coupled with the export situation is not good, titanium dioxide market is expected to continue the weak trend, but the "gold nine silver ten" market can still be expected.

The overall supply is sufficient

This year, the new production capacity of titanium dioxide is gradually released, while many enterprises are also steadily increasing after environmental protection standards, so the market supply of titanium dioxide in the second half of the year will continue to increase.

Shandong Dao En Titanium industry Co., LTD. Deputy general manager Jiang Xiaoyan introduced, at present Guangxilong chemical 30,000 tons/year sulfuric acid process device has been put into operation; Yibin Tianyuan 50,000 tons/year chlorination device test run, and there are batch product output; Longpython Baili 200,000 tons/year chlorination device is also in trial operation, production capacity will be gradually released; The first phase of Yunnan Shengwei's 50,000 tons/year chlorination plant in Guizhou is ready to be put into operation; Yunnan Xinli has entered the preparation stage before resuming production after being acquired by Dragon Python Baili, and is expected to be put into operation in 3 to 6 months.

"In the second half of the year, more new production capacity, and the original production capacity is gradually released, will have a certain impact on the titanium dioxide market." Jiang Xiaoyan analysis said.

Downstream demand is not good

From the downstream of titanium dioxide, the overall situation is not optimistic.

In terms of real estate, the completed area continues to decline this year, and it is expected that the demand for titanium dioxide in the housing decoration industry will be reduced accordingly. Relevant data show that from January to May, China's housing completion area of 267.07 million square meters, down 12.4%, the decline expanded by 2.1 percentage points.

There was little growth in demand for automobile manufacturing. Retail sales of passenger cars in China rose in the first three weeks of June as dealers restocked their vehicles and sold them at discounted prices. Although July is a slow month for car sales, demand is likely to pick up as the macro economy improves. In addition, before the implementation of the national six standards manufacturers wholesale volume are controlled, after the formal implementation of the six, this part of the self-control will be released, so manufacturers may gradually increase the wholesale volume of car sellers in the second half of the year, coupled with the year-end performance, auto manufacturing industry compared to the first half of the expected preference, sales will increase, but the growth is limited.

Yang Xun said that environmental protection high pressure, production constraints caused by weak demand, superimposed traditional off-season demand discount, buyers more to stay on the sidelines, is expected to continue to weaken the recent titanium dioxide market. But to the "gold nine silver ten" traditional demand season, titanium dioxide prices or bottoming out may rebound.

The export situation is not optimistic

In the first half of the year, China's titanium dioxide exports declined to bring a certain pressure to the Chinese market. According to the latest statistics provided by the General Administration of Customs, China's titanium dioxide exports in May about 88,500 tons, an increase of 10.77%, an increase of 14.95%; From January to May, the cumulative export of titanium dioxide 398,100 tons, a decrease of 2.85%. From the second half of the year, the export situation of titanium dioxide is still not optimistic.

Jiang Xiaoyan analysis that the main growth drivers of exports for India and some Southeast Asian developing countries. In India, for example, every year in June began to enter the rainy season, which is also the local real estate off-season, titanium dioxide demand is weak. According to China's export data for many years, the export volume will decrease in the second half of the year, it is expected that the international titanium dioxide market demand will continue to decrease in the later period, China's titanium dioxide exports will be limited.

Overall, the second half of the titanium dioxide market is "first weak after strong and weak" wave trend. At present, the traditional off-season demand for raw materials was originally less, and environmental protection high pressure to downstream operating rate limited, coupled with titanium dioxide itself in the price reduction channel, buyers wait-and-see sentiment increased, prices will continue to fall, is expected to reach the end of August the lowest point of the year about 13,500 yuan (cash including tax delivery price). However, to the "gold nine silver ten" traditional season, titanium dioxide prices are expected to climb, the high price will rise to 14,500 yuan, but the end of the fourth quarter there is still a downside risk again.

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