钛白粉中国月报

Merry Christmas and Happy New Year! Welcome to TiO₂ China Monthly Report 1112, the last issue in 2011.

China's major macroeconomic risk shifts from inflation to growth, reflected by the slowdown in year-on-year increase of both CPI and PPI in Nov., coupled with a manufacturing PMI reading of 49.0% indicating a contracting manufacturing economy.

The People's Bank of China cuts the reserve requirement ratio by 0.5%, effective from 5 Dec. 2011, aiming to ease banks' liquidity pressure and promote credit growth. In addition, the National Development and Reform Commission decides to intervene in the prices of coal for power generation and increase the prices of electricity from 1 Dec.

China's TiO₂ industry faces price rebound and sustained weak demand this month. Producers estimate profit shrink in 2012 due to ore cost increase and uncertainty in demand.

By Nov. 2011, China has totally produced 9,753 thousand tonnes of coatings this year, indicating an annual output growth rate of about 11%, despite reduced output of architectural coating.

The provisional duty rate of 10% for titanium ore export will remain in 2012, according to an updated Tariff Implementation Plan released on 9 Dec. 2011.

Exchange rates in Dec. 2011:

USD1=RMB6.34=EUR0.75