China under the spotlight

• Autores: Industrial Minerals
• Localización: Industrial Minerals, ISSN 0019-8544, Nº. 565, 2014 (Ejemplar dedicado a: Octubre)
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • A cyclical slowdown in early 2013 was especially deep, with many pigment plants closing down for 'maintenance' over Chinese New Year. In its regular in-depth survey of the market, TZMI's team in Shanghai found that prices had fallen well below the costs of production for some of the smaller plants. It wasn't just a differential between inventory costs and market pricing; so precipitous was the decline that ilmenite orders became uneconomic while still in transit. In the space of 12 months the sea had turned from blue to red.

    The other significant impact on the TiO[subscript]2 and zircon sectors is the government's push to enforce environmental regulations. In April this year, China passed changes to its environmental protection policies with harsher penalties for polluters, including daily fines for those that fail to comply. Among the many presentations, delegates to TZMI's Global Titanium and Zircon Congress to be held in Shanghai this November will be treated to a general manager whose TiO[subscript]2 plant was recently shut down for environmental reasons. His first-hand account of how and why smaller companies are dying off highlights a paradigm shift for the industry.

    The future of all building materials, naturally, is shaped by the construction market. TZMI's ongoing surveys across the value chain have suggested changes to the mineral sands industry in China are ongoing. The dynamics of supply concentration, product improvement, factor costs and environmental regulations are forcing great changes to the business models of players in China. Expect to hear some important revelations at this year's TZMI Congress in Shanghai.