2017 titanium dioxide market outlook can continue to increase prices?
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Obviously, manufacturers' production schedules in January are full, and for now, as the Chinese new year is approaching, fewer new orders will be placed and manufacturers will be executing old orders. Some of the plant's orders have been received in early March, some of the plant's orders are around the end of February, in general, 16 years of old orders are still sufficient to pay.
In January 2017, about half of the time has passed. The downstream industries are basically in a state of New Year. A large number of factories have begun to suspend work, and employees began to return home for the Spring Festival. Therefore, the main unit of the downstream consumption unit has no intention of getting the goods, and a few who are interested in obtaining the goods have basically placed orders, and then wait for delivery after the New Year.
The production plant and the final downstream customers have already waited for the market after the Spring Festival. As an upstream ore producer, it is also at the end of the year that money recovery and employee leave are in the state. Therefore, it is also in a state of suspension, and it is basically waiting for the Chinese New Year to do it again. intend.
Downstream units
The Spring Festival of the current round basically ended on February 10, and the time for the downstream manufacturers to resume production was between February 10 and February 20, some of which took place in early March, and most of them recovered in mid-March. In order to consume titanium dioxide, the main market's tradition in previous years was basically about the middle and third half of March. However, because the price increase in the past 16 years was too fierce, a large number of downstream customers were desperately trying to find out.
Therefore, about half of the downstream customers now have inventories ranging from months to months. As far as the downstream market is concerned, the expectation of customers getting goods in junior high schools in March is not very strong. Another thing to note is that in previous years, it was not until the height of the peak season in May that it would show strong desire to get goods.
Titanium dioxide manufacturer
For titanium dioxide manufacturers, the entire Chinese titanium dioxide production plant sector has basically no plans to suspend production during the Spring Festival this year, and they are fully committed to delivering their original orders. Then there will be a very prominent problem, that is, the existing warehouse inventory can not be less than a lot of goods, whether it is inland production plants, or the warehouse of a coastal production plant can basically put only about half a month of inventory, and even some plants only We can put inventory for a week or so.
In previous years, such as the Chinese New Year in 2015, many titanium dioxide plants were out of service to spend the Spring Festival season in an off-season so as to avoid too much pressure on the use of valuable funds.
Now in order to pay off orders for 16 years, each of them is operating at full capacity and the warehouse is inevitably inflated. If the downstream goods are delayed and the funds are not in place after the explosion, the impact on the titanium dioxide plant can be imagined.
In summary:
The first half of February of the first half of 2017 will be relatively calm. In the second half of the month, some manufacturers will take the initiative to pull up as the pressure on inventory increases, trying to stimulate the market to get goods in advance. If the price stabilizes to May, then the domestic market for titanium dioxide will be more interesting throughout the first half of the year.
In the second half of the year, the main turning points are in the traditional September and October. If the off-season of July and August can be a smooth transition, then the peak seasons of September and October this February will not be very large.
According to the current GDP growth rate of the Chinese economy, the overall economy should be slightly stronger than 2016, so that the total use of the titanium dioxide downstream market should be at least equal to that of 2016. There will not be much fluctuation, and there will be no 2015 Year-old trough.
Therefore, in 2017, China's titanium dioxide will not have a dozen or more consecutive rises in 2016. It will be generally stable and the supply situation will be relatively smooth. If there is a price increase, the overall increase is not as intense as the second or third consecutive increase in January 2016.
Particular attention should be paid to:
The three major factors driving the rise of titanium dioxide in 2016, the foreign titanium dioxide industry reduced 400,000 tons (actually 200,000 tons), the domestic real estate Xiaoyangchun, and titanium dioxide due to too low position led to the manufacturers to stop production for the Spring Festival without inventory, these three are currently in 2017 At the beginning of the year, there was no longer anybody. 2017 was a year of actual display of the strength of titanium dioxide mills.
As for whether or not 2017 is as analyzed in this paper, let's wait and see how it changes.
