Titanium industry is the oil, chemical, aerospace manufacturing and other industries based. State Securities believes that China's titanium industry is expected to speed up the clearing, supply and demand continued to improve.
Industrial chain urgent structural adjustment
China's titanium industry chain at the level of supply and demand of different structural imbalances. China is a big country with a large reserves of titanium resources, but the pure titanium concentrate still needs to be imported. The output of titanium sponge in China ranks first in the world and the total supply of titanium sponge is much larger than the demand. However, the high-end aerospace grade sponge Titanium capacity is still not enough.
In the field of titanium processing, China's high-end titanium material production capacity is relatively scarce, civil aircraft currently almost all titanium imports, but the more low-end industrial supply of titanium dispersion, the industry leading Po shares only about 20% of titanium, has become highly competitive The Red Sea market, the industry are in a state of low profit.
The relationship between supply and demand continued to improve
Since the end of 2016, the demand for titanium dioxide has increased. Over the monitoring conducted by some environmental protection groups in early part of this year, the demand of the upstream titanium concentrates increased, the supply tended to be tight, the price continued to rise, and the price of titanium sponge increased by nearly 40% over the same period last year. In the low-end titanium is still no significant improvement in the case of the traditional rough processing enterprises will face the cost-side is difficult to price-side conduction, corporate profit margins continue to be squeezed. According to estimates, if the low-end titanium material can not be effective price increases, a large number of enterprises will not be able to cover the cost of production, market forces will be expected to speed up the titanium processing capacity to clear the rough.
China's titanium processing industry is mainly concentrated inBaoji, the vast majority of local titanium processing enterprises in the extensive production of Weihe River Basin caused greater damage to water quality, has now become the focus of the local environmental monitoring.
Continued to intensify the environmental monitoring efforts will promote the improvement of the supply and demand relationship of the entire titanium processing industry. In the past, the small titanium processing factories that did not regulate the production process faced the inventory cut-off and the concentration of the titanium material supply industry was expected to further increase. At the same time, Will force the downstream petrochemical industries such as large-scale equipment upgrades, so as to benefit the industrial demand for titanium gradually pick up