HC WIRE: In recent years the global titanium dioxide demand continues to maintain rapid growth, with the continued breakdown of the global titanium dioxide market, the emergence of a large number of products to increase demand for larger, global Titanium Dioxide 2.93% compound annual growth rate of demand, China will reach 15.4% of demand growth. China's rapid economic growth and stimulating factors such as the Olympic Games, under the current domestic Titanium Dioxide Market conditions are very hot, but as the Olympic stadium and other projects have completed, titanium dioxide market is likely to decline. This situation is further amplified in recent years, domestic production collision, the market outlook appears even more intense competition, profit margins will be squeezed natural.
2008 4 months, led by the international prices of sulfur to sulfuric acid production of the domestic production of titanium dioxide to increase the cost of abrupt, large changes in market conditions occur. Imports of titanium dioxide as the yuan appreciation, depreciation of the dollar, causing the prices of imported titanium dioxide downward trend, although the company once the foreign production of titanium dioxide price increase rumors 100-150 dollars, but in reality difficult to implement; abroad for more than 60% of titanium dioxide to chlorine method of production, from sulfuric acid prices of factors, Guer not the subject of price increases; foreign titanium dioxide prices actually fell slightly. Titanium dioxide is made to face the reality of the spread of imports, but also based on production cost factors, but also face competition from domestic counterparts, as well as inventory, so in some heavy pressure, the pricing policies and marketing strategies are hesitant undecided; manufacturers face of weakening the price competitiveness of product problems, and some direct sales to calculate the energy to go, or expand the channel's approach to the promotion of inventory reduction.
2008 While domestic demand remains strong titanium dioxide, but there are still many factors that will limit the amount of domestic titanium dioxide, prices improved. First, the raw material supply remains tight, domestic titanium shortage of resources, poor quality of domestic titanium slag less, most also need to import from abroad, and as one of the major importing countries of China Titanium Vietnam, now has titanium in its hope keep the list of raw materials for domestic production, the move will have a greater impact on China. Into 2008, sulfuric acid, iron price gains are not reduced, to the enterprise caused a lot of pressure, in the countries to eliminate export tax rebates, the majority of enterprises the main battlefield to re-sell on the domestic, domestic market competition, Titanium dioxide is unlikely to significantly raise prices.
2008 titanium dioxide industry, there will be a strong stronger and the weak weaker trend. Those funds, strong technical force, with raw material self-sufficiency would be a better corporate profit margins, such as in Shandong TBE group self-sulfate, Panzhihua Iron and Titanium in titanium self-sufficiency, which have reduced outsourcing costs, improved enterprise profit margins. Some backward technology, outdated equipment for small businesses, in the raw material, energy prices continued to rise, the state environmental protection and energy saving and other macro-policies under the pressure of the dilemma. In the current situation, the industry is imperative for enterprises to adjust.