The increase in raw materials prices in various industries will have to start at the end of 2016. Titanium dioxide has only risen so far, and the number of titanium dioxide in 2017 has risen 15 times. Why is this?
Titanium Dioxide
First, raw material prices
Sulfuric acid is greatly affected by the international market. Since March 2017, the national sulfuric acid price has been on the rise, and the North China market has been operating steadily. Now the price of smelting acid in Inner Mongolia is between RMB 80-250/ton, and that of Hebei is between 200-300. RMB/ton, RMB 260-450/ton in East China and RMB 160-300 in China. And there is a further upward trend in prices. This price is the latest price level for 2017.
Second, inflation
The changes in the economy and investment markets in 2016 led to the “black swan†in the capital market in 2017. It is expected that the inflation trend in 2017 will be even more severe than in the previous year. This will result in an increase in the country’s overall price level.
Third, bank tightening
In 2017, in order to effectively curb inflation, the central bank requires major banks to repatriate liquidity and reduce the size of loans. As a result, corporate loans with poor capital status have become more difficult, and even loans have not been paid, making companies need to pay higher financing costs.
Fourth, the slag supply of titanium dioxide is tight
With the country’s increasing emphasis on environmental protection, titanium dioxide, as a “one-funded, two-high†industry, is experiencing this growing environmental pressure. In addition, the monopoly of the major Mining giants on the mining industry has seriously affected the supply of high-titanium slag. At the same time as the source of mineral resources is tight, it will inevitably drive up the price of imported ore.
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