Discussion on the advantages and disadvantages of

Discussion on the advantages and disadvantages of expanding production capacity in titanium dioxide industry

since 2010, many paper-making enterprises have suffered losses. Now, 18 titanium dioxide expansion or expansion unit projects have been disclosed in the industry, involving a comprehensive production capacity of 218.5t/a, and their completion plans are before 2015

among the above new and expansion projects, there are 5 chlorination methods (including DuPont Dongying project), involving a capacity of 680000 T/A, accounting for 24.2% of the new capacity. In addition, there are many titanium dioxide projects that have not been included, including the proposed chlorination project involving Xin'an County in Luoyang, Henan Province and other enterprises, and the 700000 T/a titanium dioxide project invested by Sichuan longmang in Xiangyang, Hubei Province, which was approved not long ago. If the above 24 projects can be completed and put into operation before 2015 as planned, the total production capacity of titanium dioxide in China will increase sharply to 4.615 million T/A from the existing 2.785 million T/A. Even if the general operating rates of sulfuric acid method and chlorination method in China are 60% - 70% and 75% - 80%, the annual output of titanium dioxide will reach 3million ~ 4million tons

negative factors for mn0.806 development in the market:

1 As an important chemical raw material, titanium dioxide is widely used in coatings, plastics, papermaking, real estate, automotive and other industries. With the development of economy, the demand for titanium dioxide is also increasing. The expansion of titanium dioxide projects by various enterprises has eased the upstream industry's concerns about the demand for titanium dioxide to a certain extent. The quality of some domestic titanium dioxide products can replace imported products. Capacity expansion can reduce imports, reduce the external dependence of the domestic titanium dioxide industry, and enhance the competitiveness of the domestic titanium dioxide industry

2. Wider application range, reduce upstream costs

titanium dioxide is one of the three largest sales of inorganic chemical products in the world. In addition to coating, plastic, paper and other industries, it is also used in cosmetics, chemical fiber, electronics, ceramics, enamel, welding rod, alloy, glass and other fields. The capacity expansion output of titanium dioxide will be digested in various industries, so as to expand the application range of titanium dioxide

the expansion of titanium dioxide is both an opportunity and a challenge. The expansion of titanium dioxide may lead to excess production, vicious competition and dangerous market order. At the same time, the high dependence of titanium dioxide production on titanium concentrate and difficult quality assurance will bring challenges to the development of titanium dioxide industry

challenge: 1 Market order is in danger

according to statistics, if the newly expanded capacity reaches 8. 5% by 2015 Sample size: as shown in the figure, the total annual production capacity of domestic titanium dioxide may reach 4.145 million tons at that time. Calculated at 70% operating rate, the domestic output of titanium dioxide will reach 2.9 million. If the models and uses of the new products are similar to those of the existing products, and the new output exceeds the market demand, the industry is bound to face fierce market competition in the future. China's titanium dioxide industry is still in a stage of low industrial concentration, and there is no corresponding industry standard in China, so disordered competition may lead to chaos in the market order

2. High dependence on titanium concentrate

China has high requirements for titanium concentrate. Domestic titanium concentrate has low quality and low output, which can not meet the requirements of the rapidly developing titanium dioxide industry. Therefore, it is extremely dependent on the import market, with a dependency of more than 60%, one of which is through cooperation with the University of Minnesota. The expansion of domestic titanium dioxide production capacity depends more on titanium concentrate. If the import source is cut off, titanium dioxide enterprises will face shutdown. The continuous expansion of production capacity and the shortage of titanium concentrate resources may jointly restrict the sustainable growth of titanium dioxide industry

3. Quality is difficult to guarantee

there is still a gap between China's titanium dioxide and imported products in terms of technical content and stability. Domestic titanium dioxide enterprises invest in capacity expansion rather than improving product production technology and quality, which will affect the quality of titanium dioxide, affect the speed of industrial transformation and upgrading, and widen the gap between domestic titanium dioxide enterprises and the international market

4. Increasing sales pressure

the increase of titanium dioxide production is also accompanied by a challenge, that is, how to quickly convert production into sales. The disadvantages of the traditional sales model, such as lagging orders and high costs, have become a major problem faced by China's titanium dioxide industry during the transformation period. The transformation of domestic titanium dioxide industry from traditional operation mode to multi-channel sales mode (such as transaction) is imminent