The National Development and Reform Commission suppresses fertilizer prices! The coating industry is shocked!

A few days ago, the National Development and Reform Commission's Price Supervision, Inspection and Anti-Monopoly Bureau convened fertilizer-related industry associations and leading production and distribution companies to study the recent fertilizer market conditions.

Large price monopoly penalties

Last month, Ni Zhanggen, chairman of Mengbaihe Home Furnishing Technology Co.
, Ltd.
, reported the four TDI producers of Cangzhou Dahua, Dongnan Dianhua, Gansu Yinguang and Yantai Juli for price monopoly due to TDI price monopoly.
The reason is that in October last year, the price of TDI jumped from 18,000 to 28,000 per ton, then to 40,000, and the highest to 50,000.
The goods were still unavailable, but the international market was relatively stable and maintained at US$3,000.
about.
At present, the company’s report has attracted great attention from the National Development and Reform Commission.
The National Development and Reform Commission’s Price Supervision, Inspection and Anti-Monopoly Bureau has conducted a project study, and the price supervision authorities of Hebei, Shandong, Fujian, Gansu and other provinces have assisted in the investigation.

Once identified as price monopoly, these companies will be subject to huge penalties.
Looking back this year, the Anti-Monopoly Bureau's penalties for price monopoly are sufficient to show the strength of its enforcement.

In July, the National Development and Reform Commission revoked the registration of the Hangzhou Fuyang District Paper Association by the Zhejiang Provincial Price Bureau and fined 17 companies 7.
78 million yuan.

In June, the Shanxi Provincial Price Supervision, Inspection and Anti-Monopoly Bureau fined 25 parties, including the Shanxi Electric Power Industry Association and Guodian Shanxi Branch, a total of more than 130 million yuan.

In May, the Beijing Development and Reform Commission issued 49 penalties in a row, imposing a fine of 350,000 yuan on the Beijing Property Service Evaluation and Supervision Association and a cumulative fine of more than 1.
84 million yuan on 48 members.

In early January, the Development and Reform Commissions of Shanxi and Guizhou respectively conducted anti-monopoly investigations on motor vehicle inspection agencies in some regions of the province.
Among them, the Shanxi Development and Reform Commission imposed a fine of 1.
3199 million yuan on the motor vehicle inspection agencies involved in the case.

Which coating industries are in high pressure areas

Titanium Dioxide Industry

The leading titanium dioxide company, Lomon Baili, has a total production capacity of 560,000 tons, accounting for 8% of the global production capacity, ranking first in the country in terms of production capacity, and fourth in the world.

China Nuclear Titanium Dioxide's main product is rutile titanium dioxide, which accounts for more than 90% of its main business income.
China Nuclear Titanium currently has a titanium dioxide production capacity of 400,000 tons/year (180,000 tons/year crude titanium dioxide + 220,000 tons/year titanium dioxide finishing capacity).

Jinpu Titanium is one of the largest producers of sulfuric acid titanium dioxide in China.
Previously, the production capacity of titanium dioxide was 100,000 tons/year.
After the 80,000 tons/year titanium dioxide project in Xuzhou was put into operation in 2017, the company's total production capacity reached 180,000 tons/year.

Shandong Dongjia's titanium dioxide production capacity is 160,000 tons/year.

Ananda is the largest titanium dioxide company in Anhui, with a titanium dioxide production capacity of 120,000 tons/year (30,000 tons/year anatase + 80,000 tons/year rutile + 10,000 tons/year dedicated titanium dioxide production capacity).

As of the end of 2016, my country’s total titanium dioxide production capacity was 3.
591 million tons, of which Lomon Bailey accounted for 15.
6%; China Nuclear Titanium dioxide accounted for 11.
1%; Jinpu Titanium Industry accounted for 5%; Shandong Dongjia accounted for 4.
5%; Anada accounted for 3.
3%, and these 5 companies accounted for 39.
5% of the total production capacity.
It accounts for more than one-third of the total production capacity of titanium dioxide in the country, and their titanium dioxide products are the vane of the entire titanium dioxide industry.

MDI industry

The price increase of MDI is crazy this year.
It once reached 35,000 yuan/ton in October, a record high since 2007.
This is inseparable from the leading role of Wanhua Chemical.
According to statistics, there are currently 3.
13 million tons of MDI production capacity in my country, of which polymer MDI production capacity accounts for around 60%.
Domestic MDI manufacturers include:

Wanhua Chemical's total production capacity of 1.
8 million tons (600,000 tons in Yantai and 1.
2 million tons in Ningbo) accounted for 57.
5%;

Shanghai Covestro 500,000 tons, with a production capacity of 16%;

Chongqing BASF 400,000 tons, with a production capacity of 12.
8%;

Shanghai Lianheng 350,000 tons (providing mother liquor for BASF and Huntsman manufacturers), with a production capacity of 11%;

Tosoh Ruian 80,000 tons (rectification unit), with a production capacity of 2.
6%.

The market share of the top four companies is 97.
3%; the price is clear at a glance.

Acrylic industry

As of 2016, there were 17 acrylic acid production companies in my country (3 of which suspended production), with an effective production capacity of 2.
95 million tons.
The top five acrylic acid manufacturers are:

Jiangsu Jurong Chemical, with an annual production capacity of 685,000 tons, accounting for 23.
2% of the production capacity;

Zhejiang Satellite Petrochemical has an annual production capacity of 480,000 tons, accounting for 16.
2%;

Yangzi BASF has an annual production capacity of 350,000 tons, accounting for 12%;

Formosa Plastics Acrylate (Ningbo) Co.
, Ltd.
has an annual production capacity of 320,000 tons, accounting for 11%;

Yantai Wanhua Polyurethane Co.
, Ltd.
has an annual production capacity of 300,000 tons, accounting for 10.
1%.

The above five companies have a combined acrylic acid production capacity of 2.
135 million tons, accounting for 72.
3% of the industry's total production capacity.

Epichlorohydrin industry

As of the end of October 2017, the total production capacity of my country's epichlorohydrin industry has remained at 1.
142 million tons/year.
With the commissioning of some new production capacity in the fourth quarter, my country's epichlorohydrin production capacity will reach 1.
232 million tons/year.
The manufacturers of epichlorohydrin are:

Shandong Haili's annual production capacity of epichlorohydrin is 450,000 tons, accounting for 39.
4%;

Jiangsu Haixing has an annual production capacity of 130,000 tons of epichlorohydrin, accounting for 11.
4%.

Only Shandong Haili and Jiangsu Haixing account for half of my country's epichlorohydrin.

Titanium dioxide, MDI, acrylic acid, and epichlorohydrin in the upstream of coatings are all industries with highly concentrated production capacity.
The price suppression of the fertilizer industry by the National Development and Reform Commission this time and the anti-monopoly investigation have all played a warning role in the coatings industry .
Just a few days ago, Yantai Wanhua, the leading state-owned MDI company, significantly lowered its ex-factory price.
It is intriguing whether there is a possibility of avoiding suspicion.