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Supplier's perspective
Demand-side perspective
However, the powder coating market will still face difficulties in the short term
.
TZMI has tracked the production of white goods in China
.
Figure 1 shows the overall production of refrigerators, air conditioners, microwave ovens, washing machines and water heaters
.
Approximately 39.
7 million units were produced in June 2014, a decrease of approximately 19% compared with May, and a decrease of 27% compared with the same period in 2013
.
We have noticed that the supply of titanium dioxide is becoming more stable, which will likely lead to a moderate increase in prices
.
At the same time, China's car production continues to grow, and its car ownership is highly anticipated
.
In contrast, India's car production is comparable to China's.
In the first six months of 2014, these two countries produced an average of 1.
9 million cars per month (Figure 2)
.
The main difference between the two is that about three-quarters of China's car production is passenger cars (meaning higher demand for powder coatings and titanium dioxide); in India, this proportion is only 13%
.
India’s paint market is only one-fourth of China’s.
Although its per capita consumption will undoubtedly increase, India lacks China’s control over economic plans.
If it cannot be made more equitable, India’s economic growth will be Has slowed down
.
to sum up
In short, we have noticed that the supply of titanium dioxide is becoming more stable, which will likely lead to a moderate increase in prices
.
Abundant raw materials and continuous expansion of supply from China will continue to be the outstanding features of the titanium dioxide market
.
Titanium dioxide will still be a buyer's market
.
However, before rushing to negotiate long-term procurement contracts, readers may wish to consider the weak links in the downstream market
.
Despite the positive factors for the recovery of the US market, the peaking of China's growth and the ongoing crisis in the Eurozone will cause increasing uncertainty in the development of the industry
.
