The decision of the Central Economic Work Conference on accelerating urbanization has brought confidence to the titanium dioxide industry. The acceleration of the pace of urbanization in China will inevitably cause the paint industry to find new growth points, thus directly stimulating the upstream titanium dioxide industry. It is estimated that the total domestic consumption of titanium dioxide in 2009 will not be less than 1.25 million tons, reaching the highest level in history. The mainstream price of anatase titanium dioxide reached 11,000 yuan, up 28% from 8,600 yuan in August; the mainstream price of rutile titanium dioxide was between 13,500 yuan and 13,700 yuan, up 7% from 12,800 yuan in August.
According to statistics, this year, domestic exports of titanium dioxide have increased slightly, and imports of titanium dioxide have decreased significantly from last year. Experts believe that titanium dioxide will continue to be in short supply. This is because the Central Economic Work Conference held recently called for China's economy to continue to maintain a moderately loose monetary policy next year. Real estate, as an important industry in the domestic economy, will receive further support and maintenance of policies as an architectural coating industry and plastics for the real estate decoration industry. The window and door industry will maintain a relatively rapid growth, and the demand for titanium dioxide will be further amplified. As the domestic and imported prices of titanium dioxide will still maintain a large gap, this will further encourage the downstream industries to expand the use of domestic titanium dioxide, the amount of imported titanium dioxide this year fell below 200,000 tons, 50,000 to 60,000 less than last year Ton is a foregone conclusion. However, from a medium-term point of view, the total domestic titanium dioxide plant capacity has exceeded 1.5 million tons, plus an annual import of 200,000 tons, the market supply capacity of more than 1.7 million tons, while the annual maximum total consumption will not exceed 1.3 million tons. Around 2010, with the commissioning of a number of newly built and expanded installations, the domestic integrated production capacity will be further enlarged. Therefore, in the next 3 to 5 years, the domestic titanium dioxide industry will enter a stage of recession, mergers and restructuring of enterprises is imperative.
However, in the long run, China's titanium dioxide industry still has a lot of room for development. The rise of new rural construction and the acceleration of the urbanization process will continue to provide good opportunities for the paint decoration industry and the titanium dioxide industry. Titanium dioxide is the world's third largest inorganic chemical product following the synthesis of ammonia and phosphate. The per capita consumption of titanium dioxide is often seen as a barometer to measure the national economy of a country. At present, per capita annual consumption of titanium dioxide in developed countries in Europe and the United States is close to 4 kilograms, while the per capita annual consumption level in China is less than 1 kilogram. From this perspective, in the foreseeable future, when China's economy reaches the level of developed countries, the annual domestic consumption of titanium dioxide can reach more than 5 million tons.
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