Discussion on the advantages and disadvantages of

2022-07-25
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Discussion on advantages and disadvantages of capacity expansion in titanium dioxide industry since 2010, there have been 18 titanium dioxide expansion or expansion unit projects in the industry, involving a comprehensive capacity of 218.5t/a. Their successful experience is worth learning. The project is planned to be completed before 2015

titanium dioxide

among the above new construction and expansion projects, there are 5 chlorination methods (including DuPont Dongying project), involving a capacity of 680000 t/a, accounting for 24.2% of the new capacity. In addition, there are many titanium dioxide projects not included in the planning, including the proposed chlorination project involving Xin'an County in Luoyang, Henan Province and other enterprises, and the 700000 t/a titanium dioxide project invested by Sichuan longmang in Xiangyang, Hubei Province, which was approved not long ago. If the above 24 projects can be completed and put into operation before 2015 as planned, the total production capacity of titanium dioxide in China will increase sharply to 4.615 million t/a on the basis of the existing 2.785 million T/A. Even if the general operating rates of sulfuric acid process and chlorination process in China are 60% ~ 70% and 75% ~ 80%, the annual output of titanium dioxide will reach 3million ~ 4million tons

negative factors for market development:

1 As an important chemical raw material, titanium dioxide is widely used in coatings, plastics, papermaking, real estate, automobile and other industries. With the development of economy, the demand for titanium dioxide is also increasing. The expansion of titanium dioxide projects by various enterprises has eased the upstream industry's concern about the demand for titanium dioxide to a certain extent. The quality of some domestic titanium dioxide products has reached the level that can replace imported products. Capacity expansion can reduce imports, reduce the external dependence of the domestic titanium dioxide industry, and enhance the competitiveness of the domestic titanium dioxide industry

2. Wider application range to reduce upstream costs

titanium dioxide is one of the three largest sales of inorganic chemical products in the world. In addition to coating, plastic, paper and other industries, it is also used in cosmetics, chemical fiber, electronics, ceramics, enamel, welding rod, alloy, glass and other fields. The capacity expansion output of titanium dioxide will be digested in various industries, so as to expand the application of titanium dioxide ① the high-temperature airflow rushes out of the dangerous range of 10 points outside the box

the expansion of titanium dioxide is both an opportunity and a challenge. Titanium dioxide capacity expansion may lead to excess production, vicious competition and dangerous market order. At the same time, the high dependence of titanium dioxide production on titanium concentrate and the difficult quality guarantee will bring challenges to the development of titanium dioxide industry

challenge: 1 Market order is in danger

according to statistics, if the newly expanded production capacity is fully planned by 2015, the total annual production capacity of domestic titanium dioxide may reach 4.145 million tons, and the domestic output of titanium dioxide will reach 2.9 million based on the operating rate of 70%. If the models and uses of the new products are similar to those of the existing products, and the new output exceeds the market demand, the industry is bound to face fierce market competition in the future. China's titanium dioxide industry is still in a stage of low industrial concentration, and there is no corresponding industry standard in China. Disordered competition may lead to chaos in the market order

2. High dependence on titanium concentrate

China has a high demand for titanium concentrate. The domestic titanium concentrate has low quality and low output, which can not meet the requirements of the rapidly developing titanium dioxide industry. Therefore, it is extremely dependent on the import market, with a dependency of more than 60%. The expansion of domestic titanium dioxide production capacity is more dependent on titanium concentrate. If the import source is cut off, titanium dioxide enterprises will face shutdown. The continuous expansion of production capacity and the shortage of titanium concentrate resources may jointly restrict the sustainable growth of titanium dioxide industry

3. Quality is difficult. I hope this sharing can help you ensure that there is still a gap in the technical content and stability of titanium dioxide in China compared with imported products. Domestic titanium dioxide enterprises invest in capacity expansion rather than improving product production technology and quality, which will affect the quality of titanium dioxide, affect the speed of industrial transformation and upgrading, and widen the gap between domestic titanium dioxide enterprises and the international market

4. Increasing sales pressure

the increase of titanium dioxide production is also accompanied by a challenge, that is, how to quickly convert production into sales. The disadvantages of the traditional sales model, such as lagging orders and high costs, have become a major problem in the transformation period of China's titanium dioxide industry. The transformation of domestic titanium dioxide industry from traditional operation mode to multi-channel sales mode (such as transaction) is imminent

new heights

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