Demand for titanium dioxide rebounded, prices recovered

Titanium dioxide inventories have been on the rise since June, reaching an annual high of 134,800 tons in early July. Under the background of the spread of foreign epidemics, market demand was weak, export trade suffered a greater impact, and domestic demand was not as expected, resulting in titanium dioxide The price goes low. As of July 10, the domestic spot price of titanium dioxide (rutile) was 12,500 CNY/ton, down 1.57% from the previous month.

On July 3, Panzhihua Zhengyuan Technology Co., Ltd. announced that the price of anatase titanium dioxide will increase by 500 yuan (ton price, the same below) from July 6. Prior to June 28, Panzhihua Titanium Technology Co., Ltd. announced that it would raise the domestic trade price of rutile titanium dioxide by 500 yuan and the foreign trade price by US$80 from now on; anatase titanium dioxide THA2000, Dingxing anatase titanium The domestic trade price of white powder PDA1000 is raised by 500 yuan, and the foreign trade price is raised by US$80.....
     In fact, it is very common for both titanium dioxide manufacturers and distributors to adjust prices based on their own inventory in the near future, and the overall titanium dioxide market has basically stopped falling. At present, the mainstream prices of most domestic sulfuric acid rutile and anatase titanium dioxides are 12,000-13,800 and 10,000-11,000 respectively; domestic and imported chlorinated rutile titanium dioxides are mainly priced from 17,000 to 1.85. Ten thousand yuan and 25,500 to 28,000 yuan.

Raise quotations at home and abroad


     In early June, foreign companies successively increased their quotations of TITANIUM dioxide. On June 8, Ishihara (ISK) announced an increase in the price of titanium dioxide in the Asia-Pacific region by US$200 from July 1. Later, Tenuo issued a price increase letter stating that due to the pressure of raw material pricing, the price of titanium dioxide will be increased by $75 from July 1. Beginning in mid-to-late June, some domestic distributors and end customers have been stockpiling stocks. The strong "moving warehouse effect" has reduced manufacturers' spot inventories, and production companies in Southwest and China have almost out of stock.
     Driven by this, since the end of June, many domestic titanium dioxide companies have successively issued letters to increase the price, including Panzhihua Titanium Technology, Panzhihua Titanium Chemical Industry, Guangxi Detian Chemical Industry, Yunnan Dahutong Titanium Industry Co., Ltd., and Guangxi Jinmao Titanium Industry Co., Ltd. Company, Panzhihua Zhengyuan Technology Co., Ltd., Hunan Chuangda Yutu Chemical Co., Ltd., Guangxi Shunfeng Titanium Industry Co., Ltd., China Nonferrous Group (Guangxi) Pinggui Flying Disc Co., Ltd., and Yumen Jingyang Titanium Dioxide Manufacturing Co., Ltd. announced The price adjustment will increase the domestic titanium dioxide price by 500 yuan and the international price by 80 dollars.

Market stock rebound requirements


     Yan Titanium industry analyst Yang Xun believes that this announcement is also the first time in the past three months. The titanium dioxide market can be said to be reversed.

     It is understood that due to the impact of foreign epidemics, the import and export of the upstream and downstream of the titanium dioxide industry chain have slowed down, especially the terminal export. Therefore, starting from late March, the titanium dioxide market has entered a price reduction cycle. By the end of June, the prices of sulfuric acid Rutile and anatase titanium dioxide were vertically reduced by 3,000 yuan and 2,000 yuan, respectively, a decrease of 19.87% and 17.39%. Taking sulfuric acid Rutile Titanium Dioxide as an example, the price has been reduced by 3,000 yuan in just three months, and the average price has been reduced by 1,000 yuan per month. Such a decline and rate of decline are rare in the past.

      In the second quarter, the market set the tone for "grey", and the third quarter may start with a bullish start in the "red" market. Yang Xun analyzed that the price of titanium dioxide in June has been at a low level in recent years. On the one hand, manufacturers with no raw material resources are deadlocked on the cost line, and even have upside down losses. Manufacturers have no intention of cutting prices and have to stop. On the other hand, because the price is too low, the production enthusiasm of enterprises is not high, and some have limited production and supply operations. While ensuring the stable supply of existing customers, they take starvation sales to help push up the market. In addition, the main raw material titanium concentrate has recently stabilized. Judging from the situation of enquiries, miners have no intention to ship at low prices. Therefore, regardless of cost or supply and demand, the titanium dioxide market has rebound requirements.

The short-term bullish trend is obvious


     Fu Yijiang, deputy secretary general of the Titanium Dioxide Industry Branch of the China Coatings Industry Association, believes that this wave of rising titanium dioxide prices is a recovery growth. In the short term, due to the fact that most traders stock up for stocks in the early stage, the inventory pressure of manufacturers is not great. "Moving warehouses" adjusts the "supply and demand" situation in the market. The actual order prices of holders will remain strong, and the market outlook is obviously bullish.

      "From the current comprehensive information, the titanium dioxide market will likely continue to rise in July. Today, the terminal market has stocking operations, and some of them are in stocking, but most of them need to be ordered and waiting for goods, and the supply is tight or accelerated. Titanium dioxide price. The overall trend of the domestic price market is still based on the leading companies in the southwest. The first ten days of July may become a key time point for the price trend. In the short term, the actual order price of holders is strong, and the market outlook has been bullish. The actual transaction price It is a single discussion." Yang Xun said analytically.

     At the same time, Yang Xun pointed out that although the current titanium dioxide market has basically achieved a stabilizing rise, there are still three negative factors that require attention. First, from time to time until the off season, domestic trade demand is still not optimistic. From the perspective of supply and demand, there is no strong driving force, and the continued bullish support for the market outlook is insufficient. The shifting effect of some manufacturers and distributors is obvious, which may advance the peak season and overdraft the demand for "Golden Nine Silver Ten". Second, the foreign epidemic situation is still severe. The current export market has returned to about 60% of the normal level. However, the overall export volume of upstream and downstream has reached a bottleneck, and it has been slow to recover. The third is due to India’s closure of the country to fight the epidemic and Sino-Indian border issues, which may have a certain negative impact on my country’s titanium dioxide exports and titanium ore imports.

The price of titanium concentrate on the cost side is rising, and the price of titanium dioxide is supported


     The downstream consumption structure of titanium dioxide is relatively stable. Titanium dioxide is divided into two varieties: rutile titanium dioxide and sharp.

     Titanium-type titanium dioxide is used in different fields. The price of rutile-type titanium dioxide is higher, reaching RMB 12,500/ton on July 10. Downstream applications mainly include coatings (55.25%), plastics (26.12%), papermaking (9.99%), inks (2.18%), others (6.45%), etc. Cost: Upstream prices have risen and spreads have narrowed, supporting price stability. On July 10, the price of titanium concentrate (>50%, Sichuan) was 1500 CNY/ton, up 20% year-on-year.

     The price of titanium dioxide will remain stable in the short term, and the possibility of further narrowing of the price difference is unlikely. Because demand has bottomed in May and June and shows signs of good recovery, the price of titanium dioxide has risen, the price of titanium dioxide has fallen, and the sulfuric acid method and The price difference of chlorinated titanium dioxide has continued to shrink, and profitability has been invaded. However, the price of titanium dioxide has been supported to a certain extent when the price of titanium concentrate at the cost end is rising.