Titanium dioxide supply reductions in this year's dilemma

People are used to seeing themselves and their peers. Looking at oneself, the more confidence they have, the more they naturally like their own products and designs; the more they look at each other, the less pleasing they look, and cannot help but want to surpass them, want to imitate, and want to dig people. Seeing yourself and looking at peers are all partial thinking, like reading glasses or myopia. From a big point of view, it is to put on a pair of special glasses, the left eye industry lens, the right eye is the industrial lens. Borrow this special pair of glasses and review their products and peer business. What is the business of titanium dioxide under this pair of glasses?

In recent years, the titanium dioxide market is in a downtrend, but whether it is ups and downs, the industry must reflect the values ​​of credit. Recently, rutile titanium dioxide has almost fallen below 9,000 yuan/ton, which means that the clear market structure has been broken, the global market At the time of reconstruction, there is greater uncertainty in the market economy.

In the winter, what are the top priorities for doing business? Keep your cash flow. Don't let your cash flow break. China's titanium dioxide industry has experienced a period of rapid development. It has also experienced a cycle of rising and falling with China's development. China's economic development has basically experienced four times. The big cycle rises twice and falls twice.

The first increase was 1992-1997, and our economy has risen very quickly. From 1997 to 2003, our economy was in a downturn and it was a deflated state. If everyone has a memory, that period of time is also a very, very difficult period for our country’s economy. This period of 2004-2012 is the time for the rapid development of our economy. It is the fastest time in the history of our economic growth. Thanks to the improvement of external conditions, we have benefited from our industrialization. So at that time, we had a saying that "Even if the pig stands on the tug, it will fly" because at that time the wind was so big that everyone was flying very high. However, since 2012, our entire economy has begun to decline. The fuse is of course the European crisis and it has spread to the world. It seems that the only place where there is a bright spot is the U.S. economy. This is why the U.S. dollar is rising. All countries’ currencies are depreciating compared to the U.S. dollar. China is no exception and will follow suit. But will our devaluation be reduced to 7? I do not think it is possible. If there is such a devaluation crisis, the central bank must definitely intervene, especially a psychological barrier. The cycle of the past is basically a big caliber. It counts as a cycle every seven years. This will be the beginning of 2012. The next cycle of ours has only just begun. Therefore, we must prepare for a hardship in 2016 and it may be the most difficult year for this round of economic adjustment.

What will happen this year?

Experts said: Many companies will be merged and reorganized this year, and some companies may have to declare bankruptcy. The news from the Central Economic Work Conference will be an important year for adjustment next year. The Central Economic Work Conference put forward five tasks: capacity reduction, inventory destocking, de-leverage, cost reduction, and short-cutting. Titanium dioxide enterprises may have to experience “painful production capacity in exchange for reasonable inventory; cycle economy reduces costs and develops high-end and development”. Titanium Dioxide Enterprise Production Cuts and Reductions, Upgrading Product Levels "Reducing Quantity and Improving Quality" to Market for High-end Products.

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