According to Shen, over-capacity--caused by both demand shrink and capacity expansion--is now harming almost all the traditional and some of the emerging industries in China. 

 

However, Shen says, we can expect a gradual market recovery in the second half of 2014 with a large portion of backward productive forces and facilities to be closed down. Legislation on waste from the titanium dioxide industry issued by Ministry of Environmental Protection and Ministry of Industry and Information Technology also may effectively raise the threshold for market access.

 

Meanwhile, favorable policies on advancing urbanization and housing programs may boost domestic titanium dioxide demands while global economic recovery facilitating exports.