Merging and recombination in Chinese tio2 industry are expected to speed up since manufacturers with a production capacity of 30,000 tonne, who account for the majority of domestic producers, are likely to face hardship in the near future. Thirty thousand tonne is usually viewed as the minimum level of production capacity in tio2 industry, while 50,000 and 80,000 are considered passable and preferable.

Those manufacturers with low production capacity suffer not only from decreasing market share but also from leading enterprises’ overwhelming superiority. Large-scale companies often try to boost market share with their double advantages of high quality and low price, leaving the smaller ones struggling to survive price wars.

Despite a common wish that tio2 market would bounce back in March, the true story is domestic companies successively cut prices to establish a market share while international giants keep raising prices. However, the trade volume is far from satisfactory, even lower than that of last year.

Chances are domestic manufacturers will keep lowering prices in April, making more companies hesitate. According to head of marketing of Shanghai Titanos Industry Co. Ltd., price decrease will remain as many leading companies are troubled with overcapacity and inventory pressure. There seems to be no doubt that only the fittest can survive since a strong tendency of recombination in Chinese tio2 industry has already taken shape.