Environmental Protection Policy Tightening Titanium Dioxide Two "Patterns" May Change

In recent days, the national environmental protection policy tightened. On December 5, the State Council issued the “13th Five-Year Plan for Ecological Environmental Protection”, and the plan clearly put forward 12 binding indicators and 13 expectations for the “13th Five-Year” ecological environment protection. Sex indicators; Formulation of three major pollution prevention action plan construction plans, and start environmental governance tough battle. Under this pressure of environmental protection, on December 2, Panzhihua Vanadium and Titanium High-tech Zone public companies to steal industrial wastewater to the Jinsha River, causing environmental pollution behavior, was exposed by CCTV financial channel "economic half-hour" column. On December 3, the inspection team led by the party members of the provincial environmental protection department went to Panzhihua to urge the rectification. On December 4, the joint investigation team (Provincial Environmental Protection Agency + Panzhihua City Government) investigated the enterprises in the park one by one. By the end of the same day, 28 companies had ceased production, 30 were placed on file, 16 punishment decisions were issued, and 5 were transferred to public security agencies. Administrative detention is 2 people. The inspection team also requested Panzhihua City to comprehensively sort out the city's environmental issues, carry out large-scale investigations and major renovations, formulate practical solutions and set clear deadlines and deadlines for rectification.

The environmental protection issue has spread to the titanium dioxide industry so quickly that the titanium dioxide in the Panzhihua region has been shaken by the SMEs. On the other hand, the current status of domestic titanium dioxide leading enterprises is different. On December 2th, brokerage companies exclusively researched Lililian. On December 6, the company announced that its main product price was adjusted at RMB 1,000/ton, which was completed on December 7th. Annual dividends. Whether the pattern of the future titanium dioxide industry will change, and at the same time, will the supply and demand pattern of the titanium dioxide industry also change?

The Panzhihua region is the production center of the domestic titanium concentrate-titanium dioxide industrial chain: Panzhihua has a titanium concentrate production capacity of about 4 million tons, titanium dioxide production capacity of about 600,000 tons, and titanium dioxide accounts for nearly 15% of the national production capacity, while the current Panzhihua area only There are Panzhihua Iron and Steel and Oriental Titanium that are driving normally. The suspension of production involves a production capacity of about 300,000 tons, which has a large impact on short-term supply.

The market for titanium dioxide in 2016 has been established. After a downturn in 2015, titanium dioxide will soon enter the rising channel. The price of titanium dioxide has risen by about 60% from the beginning of the year, and it can still maintain its kinetic energy in an environment where the domestic economy is not good enough. In response to the rebound, a number of factors such as the reduction of titanium dioxide production by enterprises, the recovery of downstream demand, the tightening of environmental protection supervision, and the high cost have all contributed to the realization. At present there are more people in the industry, said, "the market has no more than 13,000 anatase, 15,000 of the following rutile."

If there is no explosion of environmental protection events, the market for titanium dioxide may become more steady at the end of the year. However, as far as the current situation is concerned, more than 10 companies have announced price increases since December, and the rate has far exceeded the previous period, 1,000-1,500 yuan. The price increase rate of tons of surprise glasses, the downstream, dealers at the end of the year to eat a stick "sap"; this "X" factor has broken the market supply and demand pattern, but the duration is still unknown.

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