Why titanium dioxide prices continue to rise this year, the paint industry does not go up?

Prices of raw materials in various industries have to start at the end of last year. Until now, titanium dioxide or only rise, count this year titanium dioxide prices 15 times even crazy, why is this? However, this year, titanium dioxide prices continue to rise, paint industry does not go up?

First, the prices of raw materials: Sulfuric acid is influenced by the international market, since March 2017, China's sulphuric acid price rises, the overall stability of the North China market, the price of Inner Mongolia area in acid smelting 80-250 yuan / ton, Hebei acid ore price in 200-300 yuan / ton 260-450 yuan / ton, East China, central China 160-300 yuan. And prices are on the rise. This price is the latest price level for the year 2017.

Second,
In 2016 economic and investment market changes in 2017 with capital market “ black swan, ” the inflation trend is expected in 2017 than a year of hard, this is the overall price level to rise.

Third, tightening bank

In 2017, in order to effectively curb inflation, the central bank called on major banks to restore liquidity and reduce the size of loans. As a result, enterprises with poor financial status are more difficult to obtain loans, and even less loans, which makes enterprises need to pay higher financing costs.

Fourth, titanium dioxide slag supply

As the country pays more and more attention to environmental protection, titanium dioxide as a &ldquo, a capital of two high ” industry, is being subjected to this growing pressure on environmental protection. With the main mineral of the mining giant monopoly, has seriously affected the supply of high titanium slag. While the ore source is tight, it will drive up the price of imported ore.

Why is the paint industry does not rise?

Simply “ poor production ” problems, the domestic market is currently in the economic downturn, in the face of the paint industry rose obviously customers do not buy it, then a large number of production and greatly increase, will only increase the market's death.

Of course, there are still many companies adhering to the principle of small profits and quick turnover, they are indeed using low prices to hit the market, but this is only a regular means of hitting the market.

On the face of it, the price to the cost line, not to earn money, in fact, earn market share, and use this market share expansion, compression competitors market share and space.