The price of 'industrial MSG' soared, leading to urgent price adjustment

The impact of overseas epidemics has weakened, demand has gradually recovered, and chemical price increases are gradually spreading. This time it is the turn of titanium dioxide. At present, the price of titanium dioxide is showing signs of stopping the decline and rebounding, leading companies will likely increase their prices in the future.


Many titanium dioxide companies announced price increases

Recently, many titanium dioxide companies such as Titanium Technology, Fangyuan Titanium Dioxide, Tianlun Chemical and other titanium dioxide companies announced price increases. The price increase covers anatase and rutile titanium dioxide. The price increase ranges from 500 yuan to 600 yuan per ton. The range is around US$80 per ton.

On the evening of August 6, China Nuclear Titanium Dioxide, the leader in the titanium dioxide industry, issued a price increase notice, and on the basis of the current sales price of titanium dioxide, the company's sales prices of various types of titanium dioxide were raised. Among them, the sales price for domestic customers is raised by RMB 500/ton, and the export price for international customers is raised by USD 80/ton. This price increase is the third time that China Nuclear Titanium Dioxide has raised the sales price of its main products since 2020.

In fact, since June, the foreign epidemic situation has improved relatively, and the titanium dioxide market has ushered in the dawn of a restart. As early as early June, Japan's Ishihara announced an increase in the price of titanium dioxide by US$200/ton. Subsequently, at the end of June, Panzhihua Titanium Technology Co., Ltd. issued a price increase letter. Since then, it has set off a wave of price increases for domestic titanium dioxide companies. Throughout July, more than 30 companies have issued price increase letters, generally raising prices by 500 yuan. In addition, since July 1 this year, the export tax rebate of titanium dioxide has been cancelled, which is one of the reasons why companies have raised prices.

The traditional peak season of the titanium dioxide industry is coming, and the price increase is expected to continue

Titanium dioxide is currently recognized as the whitest and most stable white inorganic pigment in the world. It is called "industrial monosodium glutamate" and is widely used in coatings, plastics, inks and other industries.

According to industry analysts, price increases in the titanium dioxide industry have formed "hidden rules." Small and medium-sized titanium dioxide companies first tried to raise prices, and then leading companies, especially leading export companies, followed the price hikes. Finally, most companies in the industry implemented price hikes.

According to the market conditions of titanium dioxide in previous years, September and October will be the traditional peak season for the titanium dioxide industry. With the increasing pressure on real estate delivery in the second half of the year, coupled with the stimulus effect of a series of automobile-related policies issued by various regions in the second quarter, domestic demand for titanium dioxide will increase significantly in the third and fourth quarters.

In addition, the improvement in the export situation has also given enterprises the confidence to raise prices. From the perspective of upstream raw material cost, the global source of titanium concentrate is gradually decreasing, but the market demand is increasing every year, which will inevitably lead to the price of titanium concentrate only rising. Therefore, in the long run, the reduction of titanium concentrate sources will also support the price increase of titanium dioxide.


Titanium dioxide concept stocks set off a rebound

On the day after the price increase announcement (August 7th), China Nuclear Titanium Dioxide opened sharply higher and then rushed to more than 6%. The latest closing price hit a two-year high.

The Securities Times·Data Bao found that there are not many companies with titanium dioxide business on the A-share market. There are currently 9 companies in total. In addition to China Nuclear Titanium Dioxide, Gimpo Titanium, Anadar, Lubei Chemical, Tianyuan Group, etc. The closing days were all red.