Titanium dioxide "more fate" or will be trapped in the "quagmire"?

Since 2016, titanium dioxide, which occupies an important position in industrial production, can be described as a “life-long route”. From the previous supply shortage, the market was in short supply. Titanium dioxide experienced “six consecutive rises” and “seven consecutive rises”, and the prices soared. In recent years, the titanium dioxide market has gradually returned to a stable level and prices have become more reasonable. However, the recent news of a European health agency calling for the attribution of titanium dioxide to carcinogens broke the market's original calm. Titanium dioxide and paint market will bring new impact, titanium dioxide market or will be in the doldrums.

Titanium dioxide "more fate" or will be trapped in the "quagmire"?

Titanium Dioxide Application

Titanium Dioxide is a very important raw material in industrial production, widely used in coatings, plastics, paper, printing inks, chemical fiber, rubber, cosmetics, ceramics, enamel, electronics, food and pharmaceutical industries, of which the largest proportion of paint, about 60% . Among them, the plastics industry as the second largest user of titanium dioxide, is the fastest growing area in recent years, with an average annual growth rate of 6%. Of the more than 500 titanium dioxide grades in the world, more than 50 grades are plastic-specific. The application of titanium dioxide in plastic products, in addition to its high hiding power, high achromatic power and other pigment properties, it can also improve the heat resistance, light resistance and weather resistance of plastic products, and protect plastic products from UV light. Invasion, improve the mechanical properties and electrical properties of plastic products.

"Thirteenth Five-Year" Effect on Titanium Dioxide

With the increase of supply-side reforms and environmental protection law enforcement efforts, especially the Chinese titanium dioxide industry under the guidance of the “Thirteenth Five-Year Plan”, the implementation of “three go ones, one drop and one supplement”, titanium dioxide market is expected to break through six increases. Record, in the short term ushered in the "sixth wave of rising tide", industry insiders expect the average price in 2016 tends to be reasonable at around 1.3 yuan / ton. People from all walks of life are optimistic about the development prospects of the titanium dioxide market. Industry insiders have also pointed out that the "Thirteenth Five-Year Plan" is a time when titanium dioxide industry challenges and opportunities coexist.

Europe or Europe defines titanium dioxide as a carcinogen

The French Food Environment and Occupational Health and Safety Administration (ANSES) stated in the document that titanium dioxide is commonly used in paints, construction materials and other industrial and consumer goods. According to its research results, it is recommended that it be listed as 1B through inhalation that may cause cancer. Carcinogens. On May 31, 2016, the European Chemicals Agency (ECHA) issued the request submitted by ANSES to include titanium dioxide in the harmonized classification of hazardous materials. At present, this document is in the process of soliciting opinions from EU countries. The deadline is July 15, 2016. After that, the ECHA will have 18 months to consider and give the European Commission a final proposal.

The market demand for titanium dioxide entered the market slowed down after entering June. One is the arrival of the traditional market “light season”, the other is the arrival of foreign holiday resort peaks or export reductions, and the third is Europe’s “carcinogenic crisis”, to a certain extent. It will affect the export and supply of titanium dioxide. In the later period, the stock of titanium dioxide in the country may increase, but after the first six waves of surge, traders have become more cautious in stocking, and inventory pressure will inevitably shift to the production enterprises. For some enterprises that do not have the advantage of resource allocation, market competition is at a disadvantage, or even profits are reversed, it may be an opportunity for transformation, that is, the market is in fact forced to stop production and transformation of some enterprises in the “zombie” state, prompting a more reasonable market formation. The balance between supply and demand.

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