Titanium dioxide enterprise seals, arrests, rectification, friction, chemical industry is facing “big shock”

Due to the impact of environmental inspections, the leading domestic titanium dioxide industry leader Lomon Baili, and China Nuclear Titanium Dioxide, one of the listed companies in the titanium dioxide industry, have announced closures.
According to an agent of Lomon Baili, as of June 22, only the first-level agent can get the goods from the manufacturer, and seals are taken for other enterprises and agents. The purpose of the seals is to count the current orders. In fact, the amount of orders placed by agents is also determined by the monthly sales contract signed at the beginning of the year. The seals of major titanium dioxide companies will inevitably cause changes in the supply and demand relationship of domestic titanium dioxide products, and on the other hand, it will also cause domestic titanium dioxide prices to rise.
In addition to the titanium dioxide company seals, news about the arrest of relevant persons in charge has been repeatedly exposed. The chairman of Jiangsu Dewei coating and other 6 persons have been arrested due to environmental issues. It is understood that since the launch of the new round of environmental protection inspections, some chemical companies in Jiangsu and Zhuhai regions have been interviewed by the environmental protection inspection team because some chemical companies in Jiangsu and Zhuhai have failed to meet the standards for wastewater treatment. Catch is not a Dulwich company. Since 2018, many corporate leaders have faced imprisonment due to improper waste gas and wastewater treatment. For example, the Second Criminal Division of Luliang Intermediate People’s Court only took 8 days to conclude an environmental pollution crime case, the defendant Gao was sentenced to ten months in prison for the environmental pollution crime; a metal surface treatment company in Shengzhou City illegally discharged heavy metals The waste water seriously exceeded the standard and was suspected of environmental pollution. The Shengzhou Environmental Protection Bureau transferred the case to the public security organ for investigation and punishment. The responsible person will be held criminally responsible; 3 Sichuan Chemicals Company were sentenced for environmental pollution…
Coatings, titanium dioxide, resin and other companies are all chemical products, and they will inevitably face the problem of “three wastes” in the production process. However, how to deal with the “three wastes” is the biggest problem faced by many companies. Water-based Coating companies as an example, although local governments are encouraging paint companies to vigorously promote the development of water-based coatings, it is understood that water-based coatings are also required in the production process. For sewage treatment, a wastewater treatment device requires tens of millions or even tens of millions. For some chemical companies with low annual operating income, this is a huge expense, and many companies are unable to afford it.
For the chemical industry as a whole, Sino-US trade friction will be the biggest challenge. It is understood that many core raw material products of coatings rely on imports. The United States continues to increase the scope of taxation on China and accelerates the structural upgrading of domestic enterprises. Export volume will be suppressed to a certain extent, and exports will be blocked; China will increase taxes on US goods, and the price of imported chemical raw materials will rise, and short-term raw material costs will rise. There is a trade war outside, environmental inspections inside, corporate seals, and rising raw material prices, which will be a fatal test for downstream coating companies without core competitiveness.