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Author : Date : 6/2/2016 7:08:49 PM
  China's titanium industry has experienced nearly 10 years of rapid development, expanding industry, it has grown into the world's largest titanium producer and consumer markets. But with the intense competition in the low-end enterprise market, the price war and a war of attrition, the market profit margins have been compressed dramatically, resulting in a serious surplus of low-end titanium products.
       According to the China Nonferrous Metals Industry Association Titanium Zirconium and hafnium branch data, the production of titanium sponge, the 2014 Chinese titanium sponge production capacity reached 150,000 tons, in 2015 the actual capacity of about 88,000 tons, significantly reduced by about 50%. 2015 actual production of titanium sponge was 6.2 tons, the actual sales of 58,000 tons, from these data we can see, titanium sponge production capacity excesses. The domestic market for the general decline in demand for titanium sponge and titanium products structural surplus, a direct result of many engaged in primary processing of titanium sponge titanium business, cut or even stop production.
      Titanium industry "to production capacity," titanium sponge processing enterprises from the beginning, from the production of low-end titanium products business started from the backward production technology, companies began manufacturing equipment behind, snatching the most powerful commodity market from the start. Meanwhile, the "zombie companies" interfere with the normal development of titanium industry, but also on the titanium industry market have some impact and destruction. Faced with this situation, for some high energy consumption, low output, extensive titanium processing enterprises, shutting down is necessary.

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