China Titanium Dioxide Industry Association Pre-submit “Titanium Dioxide Tax Relief Report for Chlorination Process”

In order to report to the relevant state authorities on the report “Application for Tax Relief and Tax Reduction of Chlorinated Titanium Dioxide”, on May 20th, an application report seminar was held in Beijing for four chlorinated production enterprises in the country. The chlorination titanium dioxide index and production cost were analyzed. Under the guidance and guidance of the Secretary-General of the China Titanium Dioxide Industry Association, Mr. Yang Yuande, we put forward a number of reasonable application reports, which will be submitted by the Secretariat of the China Titanium Dioxide Industry Association to the relevant supervisors.

The industrial production of titanium dioxide in China’s chlorination process began in the late 1950s and has undergone three stages of development: an independent R&D, technology introduction, and digestion innovation phase. In 2015, it began its industrialization phase. At present, China’s chlorination titanium dioxide production lines are: Jinzhou Titanium Industry, Henan Lili Union, Yunnan Xinli, Henan Luohe Xingmao. Due to the difficulty of the chlorination production technology, the large investment in imported technology, and the long production period of the test vehicle, the development of the chlorination process titanium dioxide industry has been greatly restricted.

National policy has been chlorinated titanium dioxide as an encouragement product since 2007. Due to historical reasons, it has not given many encouragement policies in its implementation process, especially in terms of exports. In order to further optimize the structure of export commodities in 2007, the Exports of “high energy-consuming and high-polluting” products, the Ministry of Finance and the State Administration of Taxation, the National Development and Reform Commission, the Ministry of Commerce, and the General Administration of Customs issued the “Notice on Decreasing the Tax Refund Rates for Certain Products”, and unified the titanium dioxide (Tax Code) Columns) as “double high” products are included in the list of export tax rebates.

During the 13th Five-Year Plan period, China’s titanium dioxide industry is facing a historical period of technological upgrading and industrial transformation. As the internationally recognized advanced technology, the chlorination process titanium dioxide is the country’s encouragement to develop industries during the 13th Five-Year Plan period. After nearly ten years of development, our country’s chlorination process titanium dioxide has gradually formed an industrialization pattern. The chlorinated titanium dioxide reduction tax policy is to further implement the Party Central Committee’s promotion of industrial upgrading and upgrade the national manufacturing industry’s competitiveness in the international market. At the same time, it will effectively promote the sustainable development of China’s titanium dioxide industry.

Titanium concentrate falling for 21 days will push titanium dioxide down 30%

Recently, the price of titanium concentrates was 1,700 yuan/ton, which fell by 8.32% in one week.

The price of titanium concentrates rose from the level of around RMB 450/tonne in January 2016 to a high of about RMB 2,000/tonne in mid-April 2017, an increase of nearly 350%. However, this trend has been curbed since mid-April. The average price of titanium concentrate has dropped to about 1700 yuan / ton, and some small mines also do not sell this price. In just three weeks, titanium concentrates have fallen by 15%.

However, the decline in titanium concentrates appears. Titanium dioxide is used as a downstream enterprise of titanium concentrates. This round of high prices of titanium concentrates has dropped. Is it possible to cause titanium dioxide prices to fall?

Titanium dioxide demand is clearly declining

In the second quarter, the market of titanium dioxide and the paint market gradually showed a weak state. The monitoring of the paint industry was increasingly strengthened by the supervision of the environmental protection industry, resulting in the suspension of production of most small and medium-sized enterprises, which led to the obvious demand for the titanium dioxide market. decline. Since this year’s domestic real estate regulatory policies have been frequently overweight, the market’s demand for titanium dioxide has shown a downward trend.

Downstream companies are well stocked

As the price of titanium dioxide has risen for more than a year, downstream companies have been preparing goods. Large terminals have been stocked for 3 months, and small terminals have been available for more than half a year. The demand for titanium dioxide has further weakened.

Large companies begin to sell in disguise

It is reported that large companies have recently started selling in disguised forms through rebates and other means. If the big manufacturers officially open the mode of price reduction and shipping, the market may show retaliatory decline.

to sum up

Titanium concentrate market will continue to be in weak demand, prices continue to fall at high levels, while the demand for titanium dioxide is declining, the downstream stocking is sufficient, and large companies will disguise the price and other factors in shipments, which will continue to increase the trend of titanium dioxide powder, titanium dioxide or There was a 30% drop, which fell to 15,000 yuan/ton.