China Titanium Dioxide prices continue to rise in the near future
According to industry analysis, under the background of "reduce the production capacity,", globally the reason of the growth of titanium dioxide production is mainly due to the international titanium dioxide giant divestiture and integration of its tio2 business, titanium dioxide exports rose to 720,500 tons (2015 Year, 538,300 tons), and the price continued to soar in 2016, the downstream market demand pull, leading to the continued expansion of upstream production.
After 2016 years of market price upturn period, the titanium dioxide market will enter a reasonable price range, reduce production capacity by the supply side in year 2017 will remain the key, in the long-term, will benefit from the supply side of the reform and environmental protection threshold to improve, The future growth rate of titanium dioxide production capacity is only about 3%, the downstream demand growth rate of about 6%, titanium dioxide industry supply and demand pattern will continue to improve, titanium dioxide prices are expected to continue to rise.
Northeast Securities believes that the "price" type of investment theme, the real leader should be driven by the initiative of the listed companies, especially the upstream industrial raw materials, such as vitamins, titanium dioxide, metal cobalt, tungsten and so on. Therefore, titanium dioxide related to sustainable attention.