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Titanium dioxide off-peak season analysis: the influence factors increase off-peak season more fuzzy

With the gradual increase of factors affecting the titanium dioxide market, the traditional off-peak season of the Chinese titanium dioxide market is less obvious, in 2018, the off-peak season of the titanium dioxide market is more difficult to distinguish, the price difference between the off-season and the peak season is gradually reduced or even inverted, and with the gradual increase of market factors and the continuous expansion of China's titanium dioxide market overseas, The distinction between the off-peak season of titanium dioxide market will be more less obvious.

Influence factors increase, the traditional off-peak season is less obvious

Traditional titanium dioxide market has off-peak season, in general, the annual June-August and the annual December to February of the following year for the off-season, the spring and autumn of the year for the traditional peak season. Before 2015, the traditional off-peak season of titanium dioxide market is still more obvious, affected by the international and China's environment, from 2015 on, China's titanium dioxide market traditional off-peak season differentiation gradually blurred.

Export share gradually expanded, the market affected by international factors to increase

China is a big exporter of titanium dioxide. The real estate industry in developing countries around China is developing rapidly, the demand for architectural coatings is in the rising period, the demand for titanium dioxide is increasing year by year, but these countries themselves have limited titanium dioxide production capacity, insufficient production, most titanium dioxide are dependent on imports. And China's main production of sulphuric acid process titanium dioxide, not only the geographical location has advantages, and the price advantage is more obvious, so China has become the main importing country of titanium dioxide in the surrounding developing countries, the solution of China's titanium dioxide part of the excess capacity, the average price of titanium dioxide has risen in previous years.

Affected by China's environment, market demand growth, product prices rise, titanium dioxide market off-peak season difficult to distinguish

According to statistics, in 2017, the national scale above the paint enterprises production accumulated 20.41 million tons, an increase of 7.43%, and since 2002 so far, Coating production continued positive growth, driving titanium dioxide domestic demand significantly exceeded the expected growth. Architectural coatings is the largest downstream market of titanium dioxide, consumption accounted for more than 60%, and new home sales after the decoration of more than a year of lag, belongs to the post-natal 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 largely led to the growth of titanium dioxide demand market.

Environmental factors, market supply and demand changes affect titanium dioxide off-season

In recent years, affected by China's environmental situation, titanium dioxide production costs continue to increase, environmental spending increases. As a high-pollution industry of titanium dioxide, many times ushered in production suspension or limited production, resulting in titanium dioxide market in the off-season inventory reduction and even inventory tightness, resulting in off-season is not light, high prices. And its main downstream coating industry, is also a representative of the high pollution industry, the downstream affected by environmental factors to stop production limits, resulting in titanium dioxide market demand reduction in the peak season, the peak season is not prosperous and even the price negative decline.

Supply-side reform, sulfuric acid method new capacity limited

Affected by the supply-side reform, sulfuric acid method titanium dioxide new capacity limited, the state encourages the development of chloride titanium dioxide, most enterprises are committed to the development and construction of chloride titanium dioxide, but by technical barriers and funds and other aspects of the impact, China's chlorination process development is still very slow. In the transition period of titanium dioxide market process structure, titanium dioxide enterprises are in an awkward situation, the mature technology of sulfuric acid titanium dioxide is affected by environmental protection and high pressure and other aspects of production capacity growth is limited, production is limited, and has not yet developed mature chloride titanium dioxide is weak, making the traditional sense of titanium dioxide off-peak season received a certain impact.

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