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First, the sharp rise in raw material prices and the rise in raw material prices are undoubtedly one of the direct reasons for the rise in the price of titanium dioxide. According to Zhuo Chuang, according to statistics, the price of 46% titanium concentrates suitable for titanium dioxide production has already been set at RMB 500/early 2016. Ton has risen to around RMB 1700/tonne. Affected by Panzhihua's environmental protection, some titanium ore enterprises are still in shutdown, and it is difficult to resume production in the short term. In the latter period, the price of titanium ore still has a tendency to rise. Rising raw materials raise production costs, forcing titanium dioxide manufacturers to maintain their profit margins by raising prices.
Second, environmental protection inspections have become more stringent. In recent years, more and more severe haze has seriously affected people's daily lives and physical and mental health. The country’s environmental protection policy has become more stringent. It is understood that the Panzhihua Vanadium and Titanium High-tech Zone in 2016 The activities of the company to steal industrial wastewater from the Jinsha River and cause environmental pollution were exposed by the “Half-hour Economy†section of the CCTV financial channel. Subsequently, the Panzhihua region began to focus on environmental protection inspections, coupled with the national supply side reform to eliminate backward production capacity trends, affected by this, some SMEs closed down production, to a certain extent, caused by tight market supply, low inventory, supply terminal can also reduce the stimulation The price of titanium dioxide rose.
Third, international giants such as titanium dioxide giants, Keke, Ishihara, Tenova, Huntsman and other international giants of titanium dioxide have announced that they will start raising prices after 2017. The current global demand for titanium dioxide is increasing rapidly. The titanium dioxide industry has Entering the price increase cycle, the price increase of foreign price rises will enable domestic titanium dioxide manufacturers to form an export advantage, and the recovery of exports is expected to further stimulate the demand of the domestic market.
In summary, the two price increases after the first year are mainly due to rising raw materials, environmental protection inspections, and the international environment. In addition, the logistics costs are rising, the overall production costs of the enterprises are high, and the recovery of the real estate and automobile industries is also driven. Domestic demand. These factors have also contributed to the rise in the price of these two waves of titanium dioxide in different degrees. It is predicted that the price of titanium dioxide in the latter period will still have room to rise as supply continues to be tight and demand gradually picks up.
In 2016, the price of titanium dioxide went up all the way. Taking rutile titanium dioxide as an example, the price rose from about 9,500 yuan/ton at the beginning of the year to 17,000 yuan/ton or more, and the price of titanium dioxide rose to 2017, especially during the Spring Festival holiday. After that, it even rose twice in less than half a month, and each price increase was around 800 yuan/ton. People can not help asking, what is the reason why titanium dioxide prices have been rising?