2016 was the beginning of China's 13th Five-Year Plan. Titanium Dioxide Industry was the first to announce the price increase of 300 yuan/ton for all grades of titanium dioxide on January 6th in Sichuan, and on January 7th, more than 10 companies raised the price of titanium dioxide in China. At the end of the month, the titanium dioxide market ushered in the second wave of price increases. At the same time, the stocks of titanium dioxide listed companies rose; last week ushered in the market's third increase, the thirteenth five-day titanium dioxide market rose, and finally ushered in the bottom Rebound. With the increase in the number of cattle in September and the year, the traditional market peak season will come. The demand will gradually recover in the later period, and the market price will gradually become reasonable. For the domestic titanium dioxide industry, rutile titanium dioxide After the market price almost fell below 9,000 yuan/ton, continuing the long-term low position, some enterprises suffered serious losses, and the SMEs faced great pressure in their survival. In the long run, the development of the industry was in jeopardy. In terms of enterprises, they occupied a large amount of human resources in social resources. Failure to make profits indicates that companies are wasting resources and that businesses are not criminal when they are not profitable.
Under the current normal economic downturn, corporate profits are a critical period for testing the capabilities of enterprises. Under the new circumstances, corporate profit models are being adjusted, gradually adapting to moderate economic growth, and the conversion of corporate profit models is from the past 10%. From high growth to low, most companies may change their growth rate from 6% to 7% or even from 5% to 6% in the future. All the companies that survive are profitable. This is the healthy development of the titanium dioxide industry. The conversion concept of this profit model is broad, including large-scale reshuffle and merger and reorganization in the corporate sector. The core of the titanium dioxide enterprise is the transformation of the corporate profit model.
At present, the market price of rutile titanium dioxide is about 10,800 yuan / ton announced by the latest Longxun, which is still at a historically low level. Industry analysts said: The overall cost of titanium dioxide production is generally about 10,000 yuan / ton, plus environmental protection investment and sales Costs and capital costs, although different companies have different geographical regions and different resource allocations, the sales price of sulfuric acid-based rutile titanium dioxide is 13000-15000 yuan/ton or more reasonable according to the current environmental level, resource allocation, and other factors. Titanium dioxide enterprises can achieve Profit level. This is a common recognition of the entire industry.
New Year's Eve started three times, how bad is it? At a generally accepted and reasonable price level, the improvement in profitability of the entire industry happens to inject stimulants into “zombie companiesâ€. In the process of a reasonable profitability of the market, “zombie companies†will be ready to do so, and they will be less disciplined and opportunistic to reduce investment. The production is unreasonably lower than the cost of the general business. At this time, the market will be vicious. This vicious competition will be fatal to the industry in the new normal state of the economic downturn.
Titanium dioxide industry to go out of this vicious circle, it must be the industry self-discipline, in order to regulate the reasonable production to win a reasonable "profit", to win the market core competitiveness, which is the transformation of corporate profit model.
It is reported that the “2016 National Titanium Dioxide Industry Annual Meeting 2016†sponsored by China Titanium Dioxide Industry Association will be held in Dezhou from March 23 to 25, and the conference will introduce the Titanium Dioxide Industry 13th Five-Year Plan, which will cooperate with environmental protection to establish “industry Expert inspection team and a series of industry measures to ensure the healthy development of the titanium dioxide industry during the 13th Five-Year period.
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