The White King'! Titanium dioxide set off the eighth round of price increases

Since July, titanium dioxide has been "rising" continuously. Entering the last month of 2020, the titanium dioxide market once again set off a new wave of price increases.

From December 1st to 3rd, more than 20 titanium dioxide companies including Lomon Baili, Shandong Dongjia, China Nuclear Titanium Dioxide, Shandong Dawn, Pangang Titanium Industry, Haifengxin Chemical, CITIC Titanium, etc. sent letters to increase prices , Raise the domestic price by 700-1000 yuan (ton price, the same below), and the international price by 100-150 dollars. At the same time, four foreign companies, Chemours, Connors, Tenuo, and Panergy, also announced price increases. They raised the price of titanium dioxide in the Asia-Pacific market by 100 to 150 dollars.

The reasons for the continuous increase in the price of titanium dioxide are mainly driven by two factors. One is the continuous increase in the price of raw titanium concentrate, and the pressure on the cost of enterprises continues to increase; the second is the recovery of demand and the continued shortage of spot supply. In addition, major titanium ore factories have begun to overhaul, resulting in a decrease in the supply of titanium ore, and the shortage of stocks, which in turn promoted the continuous increase in the price of titanium concentrate. The increase in the price of ilmenite concentrate directly increased the production cost of titanium dioxide companies, and many companies raised their product prices accordingly.

From the perspective of supply, the current spot situation of various manufacturers is different. Some production companies in East China and Central China have relatively loose spot supply, and some commercial holdings occupy the market at low prices and grab customers. However, most of the production companies are still very tight, and the agents have a relatively fast delivery rate within the task volume. Generally, they have already controlled the order in the middle of the month, but the order is received at the current price but cannot be delivered. The order is received by the delivery date but the future cannot be determined. The price is really helpless.

“The major titanium dioxide companies in Southwest China have a routine maintenance plan in December. The original main brands were severely out of stock, but now it is even worse. In addition, production companies in East China and other regions also actively reduce operating rates due to environmental protection and other reasons. The domestic spot market The tension may intensify, which is also one of the important reasons for the continued strength of titanium dioxide prices."

From the perspective of exports, the data provided by the General Administration of Customs shows that my country's titanium dioxide exports in October were about 110,200 tons, an increase of 38.84% year-on-year; the cumulative exports of titanium dioxide from January to October were about 99,800 tons, an increase of 21.81% year-on-year. The above data shows that the total export volume of titanium dioxide in the first 10 months has basically reached the level of the whole year of 2019. Under the global epidemic situation, the export of titanium dioxide has once again reached a record high. It is estimated that the total export volume in 2020 may exceed 1.2 million tons.

From the cost point of view, raw and auxiliary materials such as titanium concentrate and sulfuric acid have contributed to the flames, and the cost pressure of titanium dioxide manufacturers is relatively high. Last week, large mining companies in Panxi raised their guidance prices for December, and the price of 20-titanium concentrate raised 100 yuan to 2050 yuan. At present, the supply of titanium concentrate is tight, and surrounding small and medium-sized mining companies have no intention to release goods at a low price. It is expected that the price of titanium concentrate will remain high, giving strong support to the titanium dioxide market in terms of cost.

Up to now, the mainstream quotations of most domestic sulfuric acid rutile and anatase titanium dioxides are between 16,000 and 17,800 yuan and 13,300 and 14,500 yuan. Domestic and imported chlorinated rutile and anatase titanium dioxides are mainly priced at 1.85 by application. 10,000~20,500 yuan and 25,800~28,000 yuan.

It is worth noting that in the off-season, the domestic and foreign trade demand side actually weakened slightly. Due to the general forecast of the market outlook, the terminal market has been stocked for 1 to 2 months. In addition, the price of titanium dioxide has been at a high level for a long time, and some end customers are not sensitive to feedback on stocking, so they choose to purchase on demand. The current market price span is relatively large, and the spot price operation flexibility of the holders is relatively high. Having the goods in hand is the biggest advantage.

Regarding the future trend of titanium dioxide, Yang Xun, an analyst in the titanium dioxide industry, believes that although domestic demand has entered the off-season, rutile products may still maintain a strong and firm trend in December, while the supply and demand of anatase products are gradually showing a weak situation. risk. In the short term, the supply side of titanium dioxide remains strong. Some manufacturers have been warming up in advance for the favorable market in December. The actual transaction price is subject to the spot situation.