Titanium dioxide production hits record highs

From the second half of 2014, there was a sign of overcapacity in the titanium dioxide industry. Titanium dioxide prices also fell all the way. By the end of 2015, rutile titanium dioxide fell below the 10,000 yuan mark. In 2016, the government implemented positive supply-side reform measures, and “capacity reduction” was ranked as the top task of China’s five major structural reforms in 2016. However, under some measures, the production of titanium dioxide has reached a new high.

The National Chemical Industry Productivity Promotion Center Titanium Divider Center and the Titanium Dioxide Industry Technology Innovation Strategic Alliance Secretariat have recently conducted 39 full-process titanium dioxide production enterprises (3 chlorination plants and 35 sulfuric acid plants) capable of maintaining normal production. According to statistics from the French companies and one company that has both the sulfuric acid method and the chlorination method, in 2016, the total production of titanium dioxide in 39 companies was 2,597,212 tons, an increase of 274,199 tons, or 11.8%, from 2,323,012 tons in 2015. Create a new record high.

Among them, 1969134 tons of rutile products, accounting for 75.8%;

Anatase was 474,714 tons, accounting for 18.3%;

The non-pigment category was 153,363 tons, accounting for 5.69% of the total.

The total output of Titanium Dioxide of Longxi Lilian Group reached 588,400 tons, accounting for 22.7% of the country's total output, far ahead of the industry. Among them, the total output of four chlorinated titanium dioxide enterprises in the country was 105,372 tons, accounting for 4.1% of the total output of the industry. For the first time in history, it exceeded 100,000 tons, a net increase of nearly 25,000 tons from the previous year, and achieved a new breakthrough.

Under the background of “de-capacity”, the production of titanium dioxide in the country has continued to increase. The main reason is that the price of titanium dioxide continued to soar in 2016, and the downstream market demand led to the continued expansion of upstream production. For the skyrocketing prices, there are different interpretations in the market. Some people in the industry believe that there are suspicions of speculation. The adjustment of the sales strategy of the upstream companies leads to the behavior of the downstream distributors. Some people think that it is the giant titanium dioxide company. After the titanium dioxide business was stripped and consolidated, it brought market opportunities to domestic titanium dioxide enterprises.

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