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 the 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. We believe that this environmental incident has caused great impact on the supply end of the titanium concentrate-titanium dioxide industrial chain. Under the current background of the large cycle of titanium dioxide, the industry supply and demand pattern is expected to be further improved.
The Panzhihua region is the production center of the domestic titanium concentrate-titanium dioxide industrial chain: Panzhihua has a titanium ore concentrate production capacity of 4.14 million tons, a titanium dioxide production capacity of 590,000 tons, and 582,000 tons of titanium slag production capacity, which account for 57.52% of the national production capacity respectively. 15% and 29%. The titanium dioxide production capacity in the vanadium-titanium high-tech zone affected by this environmental event is about 30,000 tons per month. Taking into account the domestic production of 100,000 to 200,000 tons per month, accounting for more than 15%, the short-term supply shock is greater. According to the information from the grassroots investigation, it is expected that the suspension of production will last more than a month. Taking into account the approaching Spring Festival, we believe that this pattern of supply and demand is expected to continue into the first quarter of next year. Taking into account the beginning of the traditional peak season after the Spring Festival, downstream demand is expected to be further supported.
Recovering overseas demand, overlapping production capacity shutdown, is the main reason for the substantial improvement of domestic exports: The recovery of the real estate industry in the United States and Europe has brought about an improvement in the demand for overseas titanium dioxide, and the shutdown of overseas high-cost titanium dioxide production has also caused a certain supply. The gap, the overseas titanium dioxide giant's increase in product prices and the increase in quarterly operating rates since last year have confirmed this improvement in demand. The above two factors also led to a substantial increase in domestic exports. From January to October 2016, domestic titanium dioxide was close to 600,000 tons, and the annual high probability exceeded 700,000 tons, setting a new high in recent years.
The period after the real estate industry continued to drive the industry's demand for the off-season is not thin: In the first half of 2016, the domestic real estate industry improved significantly over the same period of the previous year. As a standard for the industries that benefit from the post-residential cycle, domestic demand for titanium dioxide in the second half of the year shows a marginal improvement. Brought about the situation is not light off season. Taking into account the lag time of the real estate industry and titanium dioxide demand, domestic demand for titanium dioxide next year is expected to maintain a rigid growth.
The Panzhihua region is the production center of the domestic titanium concentrate-titanium dioxide industrial chain: Panzhihua has a titanium ore concentrate production capacity of 4.14 million tons, a titanium dioxide production capacity of 590,000 tons, and 582,000 tons of titanium slag production capacity, which account for 57.52% of the national production capacity respectively. 15% and 29%. The titanium dioxide production capacity in the vanadium-titanium high-tech zone affected by this environmental event is about 30,000 tons per month. Taking into account the domestic production of 100,000 to 200,000 tons per month, accounting for more than 15%, the short-term supply shock is greater. According to the information from the grassroots investigation, it is expected that the suspension of production will last more than a month. Taking into account the approaching Spring Festival, we believe that this pattern of supply and demand is expected to continue into the first quarter of next year. Taking into account the beginning of the traditional peak season after the Spring Festival, downstream demand is expected to be further supported.
Recovering overseas demand, overlapping production capacity shutdown, is the main reason for the substantial improvement of domestic exports: The recovery of the real estate industry in the United States and Europe has brought about an improvement in the demand for overseas titanium dioxide, and the shutdown of overseas high-cost titanium dioxide production has also caused a certain supply. The gap, the overseas titanium dioxide giant's increase in product prices and the increase in quarterly operating rates since last year have confirmed this improvement in demand. The above two factors also led to a substantial increase in domestic exports. From January to October 2016, domestic titanium dioxide was close to 600,000 tons, and the annual high probability exceeded 700,000 tons, setting a new high in recent years.
The period after the real estate industry continued to drive the industry's demand for the off-season is not thin: In the first half of 2016, the domestic real estate industry improved significantly over the same period of the previous year. As a standard for the industries that benefit from the post-residential cycle, domestic demand for titanium dioxide in the second half of the year shows a marginal improvement. Brought about the situation is not light off season. Taking into account the lag time of the real estate industry and titanium dioxide demand, domestic demand for titanium dioxide next year is expected to maintain a rigid growth.
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