Panzhihua Titanium sea technology issued a price adjustment letter, this is the eighth titanium dioxide price wave of the thirteenth titanium dioxide enterprises; From July 5, Guangdong Huiyun titanium industry announced price increases to today has been nearly two weeks, from ready to tamp the tide of price increases and then close to the end, through the price adjustment, rutile type titanium dioxide average price has been nearly 13,000 yuan/ton. At present, the 13 enterprises with the price increase have gained large, medium and small enterprises in the industry, including the leading enterprises in Sichuan Longpython, panzhihua and Guangxi. The production capacity of the enterprises with the price increase is nearly 1.4 million tons, accounting for nearly 40% of the national production capacity. More and more enterprises are expected to raise the price in the future.

Titanium dioxide price in 2016 is a powerful force cannot leave the main tone of "cutting capacity". In the darkest days of titanium dioxide, voluntary and involuntary capacity cutting was the premise of a big price increase in 2016. Voluntary capacity cutting came from the operating pressure of enterprises, and involuntary capacity cutting mainly resulted from environmental protection, excess capacity and other issues. In this regard, the national policy also intends to guide enterprises. During the next 13th Five-Year Plan period, titanium dioxide industry will carry out "three cuts, one reduction, one recovery", cut production capacity, reduce inventory, deleverage, reduce costs, strengthen weak links, dispose of "zombie enterprises", promote the elimination of excess production capacity, and it is foreseeable that low-end backward production capacity will be completely eliminated. If you continue to control this keynote, titanium dioxide prices will be more stable.

At present, the domestic titanium dioxide market operation rate is about 70%, up 1.58% compared with last week. Among them, the construction of enterprises in Shandong and South China has been improved compared with the previous stage, with 6.06% and 4.18% increases respectively. The construction of enterprises in other regions is relatively stable. And enterprises also said that the pressure of inventory is not big, but the downstream demand is still limited problem is difficult to solve, the main factor is limited new orders. Because of the large price increase, dealers are under great pressure. The new price is often difficult for downstream customers to accept, and it is still difficult for traders to implement the new price. At the same time, the price increase also boosted the pattern of the upstream and downstream, the titanium dioxide market continues to increase, titanium dioxide businesses are eager to go up, the inquiry atmosphere slightly active, titanium dioxide market price mentality highlighted, the cost side also supported the titanium dioxide price rise.

The macro economy is still in a stable state. In June, the MANUFACTURING PMI was 50.0%, 0.1 percentage point lower than that of the previous month, which was at the critical point. Among them, the construction industry closely related to titanium dioxide maintained rapid growth. The business activity index and the new orders index were 62.0% and 58.8% respectively, up 2.6 and 6.7 percentage points from the previous month, both new highs so far this year. Among them, the housing construction industry and civil engineering construction industry business activity index and new order index are located in the high business range, the construction industry market demand increases, production and operation activities are further active, the expansion momentum has been strengthened. According to the available economic data, the titanium dioxide industry still has the momentum to rise in price.

Titanium dioxide price in the current policy and market environment is still within a reasonable range, because the future change in supply and demand will not appear a big fluctuation, the market price rise or from the willingness of enterprises, as well as the policy dividend, titanium dioxide 13,000 yuan/ton, the space is still to be seen.