Since 2011, the market competition of titanium industry is increasingly fierce. Take titanium alloy and titanium dioxide for example, according to statistics, the production of titanium sponge in five years from 80000 tons/year increased to 150000 tons/year. And titanium dioxide in five years also from more than 2.4 million tons/year growth to nearly 3.2 million tons/year. With the rapid development of titanium industry, led at the same time, the production capacity of high titanium slag from 350000 tons/year increased to 500000 tons/year. This increasing is both good and bad.All the big and medium companies are feeling the pressure suffering of too fast development.
The author thought that the high speed development of titanium industry in China is a little less rational, the phenomenon is a sign of industrial capital excess. It would be like the expansion of the real estate phenomenon in 2009.A lot of money invested into titanium industry will surely lead to market competition of titanium industry. The redundant capacity has to face a severe test when the market climax exit.Thus some companies washed off by market is also naturally understandable.
As long as the market economy system unchanged, the market competition won't end whether its source is the capital surplus or others.
As long as it is not a sunset industry, As a whole industry there must be benefits. Any benefit is destined to attract capital.
We can't push capital out of the industry and it’s also not necessary. Technology innovation and enterprise development are inseparable from the industry's capital injection.How to make good use of industrial capital and avoid its negative effect is the challenge for each industry operators and managers. In the author's observation, the most severely affected by the industrial capital is often the low-end enterprise in that industry. Even advanced technology known in the United States and Japan markets, 90% enterprises in the low-end products production will be facing the difficulty in five years. And through the market selection, able to the enterprises survived are whom have one or more talents in hands.
In rounds of market ups and downs,the excellent enterprises will gradually grow and become a representative of the industry, then contribute to advanced technology and high quality products.And the enterprises eliminated by the market will be high quality nutrients and fertilizer of good enterprises. Although it may seem cruel, but it is an integral part of the market economy.
Now it’s during the change of "the twelfth five-year plan" and " the thirteenth five-year plan". China's economic develops into the new normal status. The pains of market transition may still not end.But that will be rewarded in accordance with the scientific laws. Since 2011,it has five years of the market suddenly and violently formalized. In this five years, although we see the fall of enterprises or even the meritorious enterprises. But we also saw the emergence of technological achievements products. Compared with previous years, the imports of titanium sponge product significantly reduced. China become the titanium dioxide exporter from titanium pigment importer. Leader titanium enterprises step in commanding heights of aviation, nuclear power, military industry and other industry together with endlessly high quality products.
Compared with the developed countries, China's titanium industry scale is big, but still young. After experienced the ups and downs of the market, it is bound to the birth of titanium enterprises like HarbinTi, ShenZhen Adv-Ti ,Baoti, C-WMM. These titanium enterprises just like a shoulder holding the global challenges. Titanium will be more and more widely used. Only enterprises with high technical quality, professional service will occupy a wide range of heaven and earth.
In the next five to ten years,we believe the slowing step development of China titanium industry will be more conducive to the fine development. At the same time due to the universality application of titanium, the titanium technology ability also will get a greater ascension.Especially the good prospects the civil market, in a short period will appear the phenomenon of short supply.