At present, the national titanium dioxide manufacturers are experiencing polarization: the spot is tight, the actual price of the market is relatively chaotic, and the large enterprises are hard to find a single product. This has prompted the terminal price to rise again and again, and the price is firm and strong. The main manufacturers are routine. Overhauls and export tilt are the main reasons for this; the ones that are not tight on the spot are relatively better, but manufacturers can control the operating rate, maintain flow and supply, and cater to the general environment, and the price execution is relatively mild.
The influence of Chinese TITANIUM dioxide in the global market is increasing day by day
In early December 2020, the prices of domestic manufacturers Lomon Baili, CITIC Titanium, Panzhihua Vanadium and Titanium and some manufacturers directly rose without letter, and nearly 20 manufacturers announced an increase of 500 yuan to 1,000 CNY/ton. At the same time, foreign manufacturers such as Chemours, Connors, Tenuo, and Fantuo have also joined the last wave of price increases in 2020, and announced an increase of 100 yuan to 150 US dollars per ton, which has truly achieved since July. In the second half of the year, the full price increase model also realized the synchronization of domestic and foreign Titanium Dioxide prices, reflecting the increasing price influence of China's titanium dioxide in the global market.
Horizontal interaction within the titanium dioxide industry
From December 8th to 10th, 2020, the 2020 China International Coatings Expo was held in Guangzhou with the theme of "Green Manufacturing, Moving Side by Side". The exhibition aims to promote the green development of the coating industry and the upstream and downstream industries of the coatings, thereby promoting technological innovation, Service innovation and environmental protection innovation; accurately grasp the actual needs and trend changes of the coating industry and the entire industrial chain, realize the integration of green industrialization and informatization, build a platform for upstream and downstream communication, display, and cooperation of green coatings, and create new opportunities for industry development. Due to the global epidemic, although there are relatively few international exhibitors and visitors at this exhibition, the domestic titanium dioxide industry generally pays more attention. Although the actual effect is far from expected, at least this gathering has enhanced the horizontal interaction within the industry.
Manufacturers discuss and study market conditions, costs and inventories. For short-term future price trends, everyone can infiltrate each other to see if there is a consensus on cooperation on certain points of interest; among traders, see who has the goods in hand and market conditions. In the upward channel, how much room will continue to rise in the future, how to deal with the shortage of stocks, and whether traders and downstream users should stock up immediately, all expect to have expectations and preparations.
Industry analyst opinion
According to Yang Xun, the industry analyst of Yantai Titanium, the price of titanium dioxide has been rising in the second half of 2020. End users are tired, and they are mostly waiting and watching. Wang, there is no need to stock up so many raw materials to occupy funds. The trading market is slightly tepid, and the acceptance of the terminal market has weakened slightly, and the pace of shipments is intermittent. The sales managers of some manufacturers began to "proactively" contact the channel vendors to dump the goods. Despite this, the delivery time has been scheduled to January 2021, and the channel inventory is still not well replenished, so the short-term current may still maintain the spot intense situation.
Yang Xun pointed out that, in fact, some titanium dioxide producers have been tight for some time. When the end customers cannot get the goods, they have to adjust the formula and use the goods. When the short-selling goods appear on the market, the end users have adjusted. Formulas and products have slightly eased the tight supply of some products, which is equivalent to the differentiation of demand for a single product. Manufacturers control the supply of goods, and most of them are relatively strong. The supply of agents can be basically guaranteed, and there are also reductions and supply reductions. This makes the terminal market spot tension worse. Customers have a large amount of spot and the price is lower than the ex-factory price of 200 yuan to 300 yuan. Holders of RMB/ton should be screened. The tighter the spot, the more cautious trading is needed.
At present, the mainstream quotations of most domestic sulfuric acid Rutile and anatase titanium dioxides are between 16,500 to 17,800 CNY/ton and 13,300 to 14,500 CNY/ton. Domestic and imported chlorinated rutile titanium dioxide are distinguished by use. The price ranges from 18,500 to 20,500 CNY/ton and 25,800 to 28,000 CNY/ton (the above are all cash out-of-warehouse prices including tax).
Yang Xun believes that at present, the domestic titanium dioxide price is strong. From time to time in the off-season, the situation of manufacturers is different. Anatase has shown insufficient momentum for the rise, and the overall trading market has a potential weakness, but the main rutile manufacturers are still spotlights. Tensions. In December or even the first ten days of January 2021, the market may still remain high. In addition, the export orders of various manufacturers have been received until February. In the short term, the national sulfuric acid rutile titanium dioxide price market may remain tight. Or follow the trend and fight separately, and the actual transaction price depends on the spot situation.
Fu Yijiang, deputy secretary general of the Titanium Dioxide Industry Branch of the China Coatings Industry Association, introduced that China is the only major economy that has continued to rebound strongly in the economic recession triggered by the new crown pneumonia epidemic. The latest data highlights China's global economic status. As the second largest economy in the world, China has become the only major economy that is expected to achieve growth this year.
data analysis
The latest data released by the National Bureau of Statistics show that China's manufacturing purchasing manager index (PMI), non-manufacturing business activity index and comprehensive PMI output index in November 2020 are 52.1%, 56.4% and 55.7%, respectively, which are higher than 10. 0.7, 0.2 and 0.4 percentage points per month. The three major indexes are at their highest points during the year and have been above the threshold for 9 consecutive months. Data released by the General Administration of Customs of China on December 7 showed that imports and exports in the first 11 months of 2020 increased by 1.8% year-on-year to 29.04 trillion yuan, and China's import and export data has stabilized and improved.
Fu Yijiang pointed out that my country’s titanium dioxide industry is closely related to the general environment. According to customs data, the cumulative export volume of titanium dioxide from January to October 2020 is 99,9976.4 tons. In October, my country’s titanium dioxide export volume was 110,236.39 tons, and the cumulative average export price It was US$1,928.12/ton, a year-on-year increase of 21.81%, a record high for the same period in history. At present, all parties in the industry are reluctant to sell and have a strong atmosphere, and the willingness to ship at low prices continues to weaken. Good exports and high prices of raw materials are still the main factors for the market rise.
Fu Yijiang's analysis believes that the current price of titanium concentrates as raw materials is strong, and the downstream titanium dioxide prices will rise again, which makes miners more confident in the price market.
