In the first half of the first half of 2015, the price of sulfuric acid-based rutile titanium dioxide generally showed a trend of weaker and stronger and weaker, rising from RMB 12,992/ton in early January to RMB 13,012/ton (including tax) at the end of June. It is 0.16%. In the first half of 2015, the titanium dioxide market continued the downturn in the 2014 market. There are many factors that affect the downturn of the titanium dioxide market, except that the price of titanium concentrates is not optimistic and is inextricably linked with the downstream paint market.

According to the statistics of the National Bureau of Statistics, the total output of paint in China reached 164.8912 million tons in 2014, an increase of 7.9% year-on-year. From January to May of 2015, China's total coating output was 6,238,400 tons, which decreased to 0.94% from the same period last year. The main factors of the downturn were the erosion of the real estate market, the introduction of paint consumption tax, and the tightening of environmental protection regulations. Under the influence of the decline in paint production, the raw material market demand followed suit.

Titanium dioxide is an important coating pigment. In 2015, the export growth rate of titanium dioxide decreased. According to statistics, from January to May in 2015, the export volume of titanium dioxide in China was 228 million tons, a year-on-year growth rate of only 1.17%, compared with the same period last year. The growth rate was 57.37%, so the export growth rate of titanium dioxide dropped by as much as 56.2%. Both the growth rate of titanium dioxide export growth and the growth rate of domestic paint production are the main reasons for the slow growth in demand for titanium dioxide.

As early as 2014, the demand for titanium dioxide had been generally slowed down. It was learned at the 2014 national titanium dioxide industry annual meeting that the average operating rate of titanium dioxide manufacturers in China was about 70% in the first half of 2014, and the overall demand for titanium dioxide was slowing down. The white powder industry has continued to expand its production capacity. According to statistics, as of September 2014, China's total titanium dioxide production capacity was 2.98 million tons, a slight increase from 2013, which was approximately 380,000 tons.

With the increase in the production capacity of titanium dioxide and the continuing low demand, the overcapacity of titanium dioxide will become increasingly prominent. In the future development process, domestic titanium dioxide enterprises will also need to undergo transformation and upgrade while expanding their production capacity, expand the production of high-end products, and gradually eliminate backward production capacity and high-contamination titanium dioxide production lines.

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