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    Home > Chemial News > Valuable News > A new round of price increases for titanium dioxide strikes

    A new round of price increases for titanium dioxide strikes

    Echemi 2021-01-13

     Titanium dioxide, or titanium dioxide, is mainly used in the manufacture of coatings. 60% of the world's titanium dioxide is used in coating production, especially rutile titanium dioxide, most of which is consumed by the coating industry. China is the world's largest producer and consumer of titanium dioxide. Although the titanium dioxide industry started late, after years of rapid development, it has become the world's largest producer of titanium dioxide, accounting for approximately 42% of the world's production capacity. Due to the special domestic environment in the first half of 2020, all walks of life will be affected to varying degrees. Titanium dioxide is no exception. Demand has been reduced and prices have fallen all the way. The performance and stock prices of related concept companies were also under pressure. However, after experiencing a sharp decline in the first half of 2020, the turning point was in the second half of the year. With the gradual recovery of domestic and foreign economies, the sound of price increases in the titanium dioxide industry continued to be heard.


    Since July 2020, the price of titanium dioxide has continued to rise. At present, the domestic titanium dioxide market has started a seven-month price increase, and the landing prices of some manufacturers' products have exceeded 18,000 yuan/ton. Statistics show that in the second half of last year, the average price of titanium dioxide in the market rose by as much as 38.28%. Although it is the off-season for titanium dioxide consumption, the market has continued to increase prices recently. Domestic titanium ore has stabilized at a high level of 2,000 yuan/ton, and the prosperity logic of titanium raw materials has been continuously strengthened, forming a strong support for the price of titanium dioxide.



    Titanium dioxide market ushered in a new round of price increases


    Entering 2021, the titanium dioxide market is still hot and ushering in a new round of price increases. Looking at foreign countries, there are also calls for price increases of titanium dioxide. International Venator Materials Corporation announced that it will increase the price of titanium dioxide globally from January 1, 2021. The price increase is US$150/ton.


    In China, some small and medium-sized titanium dioxide manufacturers have also started a price adjustment model before New Year's Day. Qianjiang Fangyuan Titanium Dioxide announced that from January 1, 2021, titanium dioxide will be increased by 800 yuan/ton; Lomon Baili announced on January 8 that the company’s various types of titanium dioxide (including sulfuric acid titanium dioxide and chloride titanium dioxide ) On the basis of the original price, the sales price will be raised by RMB 500/ton for various domestic customers and USD 100/ton for international customers. In addition, on January 11, both Anada and Huiyun Titanium announced their decision to increase the company's titanium dioxide sales prices, including domestic sales prices increased by 500 yuan/ton, and international export prices by 100 US dollars/ton.


    At the same time, the domestic industry leader, China Nuclear Titanium Dioxide, also issued an announcement on January 11. According to recent titanium dioxide market conditions and raw material price increases, the company’s price committee decided that from now on, based on the existing titanium dioxide sales price, The sales price of various types of titanium dioxide of the company was 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 100/ton. It is worth noting that this price increase is the seventh time China Nuclear Titanium Dioxide has raised product prices in the second half of 2020 so far. Previously, the company raised the price of its main product titanium dioxide on July 14, August 7, September 8, October 10, October 29, and December 3, 2020.


    Public information shows that China Nuclear Titanium Dioxide is mainly engaged in the research and development, production and sales of rutile titanium dioxide and iron oxide pigments. It is the first enterprise to introduce a complete set of rutile titanium dioxide production technology from abroad. The company has three titanium dioxide production bases: Jinxing Titanium Dioxide, Hecheng Titanium Industry and Dongfang Titanium Industry. Currently, it has an annual production capacity of 330,000 tons of crude products and 400,000 tons of finished products, and its production and sales rank second in the country.


    According to industry news, on January 8, the national market price of rutile titanium dioxide temporarily stabilized at 16,300 yuan/ton, and the mainstream negotiated reference price in each market was 16,200 yuan/ton-16800 yuan/ton. The cargo is higher than 17,000 yuan/ton. The price index of titanium dioxide on January 11 was 16,049.21, an increase of 122.0 from the previous working day.



    The export volume of titanium dioxide in 2020 may reach a new high


    The main reason for this round of price increase of titanium dioxide is the continuous increase in raw material prices. The prices of titanium concentrate and sulfuric acid at the raw material end have been rising since last year. The price of titanium concentrate has risen rapidly in the second half of last year, rising from 1,200 yuan per ton to about 2,500 yuan per ton in one year. The current price has reached the highest point in the past three years. The price doubled.



    In addition, the export volume of titanium dioxide has reached a new high in recent years. According to customs data, the cumulative export of titanium dioxide in 2019 was 1.034 million tons, a year-on-year increase of 10.5%. In November 2020, the export volume of titanium dioxide was approximately 112,300 tons, and the cumulative export volume from January to November was 1,112,100 tons, an increase of 1.85% from the previous month and an increase of 37.11% from the same period last year. At present, the trend of normalization of foreign epidemics is obvious, which has an impact on overseas supply. It is expected that the export volume of titanium dioxide is still relatively optimistic. According to industry insiders, the continued strong export demand has led to the continuous decline of domestic inventories, and the market is in short supply. According to the current export situation of major factories, the export volume in December will still be around 110,000 tons, and the annual export volume will exceed 1.2 million tons. Compared with last year, the export volume of titanium dioxide is expected to hit a record high in 2020. At present, domestic enterprises mainly rely on foreign trade export for delivery, and some manufacturers have completed their annual tasks only relying on foreign trade orders. The current epidemic situation in Europe and the United States has not yet been controlled, and the growth rate of titanium dioxide exports may increase further, and the price of titanium dioxide still has room for further increase.



    Titanium dioxide sector index is active and rose nearly 5%


    CICC and other institutions believe that better demand is the main reason for the price increase in the titanium dioxide market. In addition, the trend of normalization of foreign epidemics is obvious, which has an impact on overseas supply. The export market of titanium dioxide has maintained good growth, and enterprises have relatively abundant orders on hand. From the current point of view, the foreign trade export market is relatively good, the manufacturers and distributors on the supply side are still tight, and the price of raw titanium concentrate is high. The titanium dioxide market has good confidence and market prices are rising. It is expected that the state of rising sales prices of titanium dioxide may continue until after the Spring Festival. Regarding the future price trend of titanium dioxide, many institutions believe that the domestic and external demand of titanium dioxide is performing well, and it is expected that the price of titanium dioxide will maintain an upward trend in the short term. It is foreseeable that the demand for products is in short supply, and the titanium dioxide industry welcomes the new year market.



    In terms of market performance, based on the titanium dioxide price increase and export expectations, the future performance of related concept companies is reverie. On January 12, the titanium dioxide sector rose actively, and its overall sector index rose nearly 5%, ranking among the top gainers in the two cities. Among them, the stocks Anada (002136-CN) daily limit, Huiyun Titanium (300891-CN) rose more than 15%, Jinpu Titanium (000545-CN) rose 7.85%, Trisun Technology (600552-CN), China National Nuclear Corporation Titanium dioxide (002145-CN) rose more than 5%, Lomon Bailey (002601-CN) rose nearly 4%, Anning shares (002978-CN), Lubei Chemical (600727-CN) and other stocks followed the rise.

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