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Summary of the titanium dioxide market in the first half of 2021

Echemi 2021-07-15

Price analysis


In the first half of 2021, China’s titanium dioxide market has shown an overall upward trend. In June, the market entered the off-season, and some market prices fell by 500-1000 yuan/ton. On the whole, the price of rutile in the middle of the year was still 5,700 yuan/ton higher than that at the beginning of the year. The price of titanium type is 6700 yuan/ton higher. At the beginning of the year, the supply of rutile type titanium dioxide is tight and the demand is strong and the profit is higher than that of anatase type titanium dioxide. Anatase manufacturers switch to crude products, and the market supply decreases. Due to strong demand, prices continue to rise, so the increase Higher than rutile type; as of the end of June, the ex-factory price of China's rutile-type titanium dioxide is 18,800-21,500 yuan/ton with tax, and the ex-factory price of anatase-type titanium dioxide is 17,800-19,000 yuan/ton.


In 2021, the global economy will recover, and domestic and foreign market demand will be strong. The titanium dioxide market continues its upward trend at the end of 2020. Since the beginning of the year, titanium dioxide has ushered in "six consecutive rises" during the year. Among them, Longbai Group has sent letters to announce the increase in market prices five times, respectively. The price increase was announced on January 8, February 7, March 10, April 11, and May 9. A letter was issued on June 8 to implement the new market price in July. The execution price in July was compared with the previous moon phase. Flat.


The price of titanium dioxide has continued to rise from January to May, and the increase has been large, with a cumulative increase of 6000-7000 yuan/ton. The main reasons for the increase in market prices are: 1. The demand for downstream markets at home and abroad has recovered, and the demand for titanium dioxide has increased; 2. Raw materials Prices continue to rise. The market price of titanium ore has risen by about 500 yuan/ton, and the price of sulfuric acid has risen by about 350 yuan/ton. The continued pressure on manufacturers to increase costs will drive prices to a certain extent.

In June, the titanium dioxide market entered the off-season, downstream demand weakened, and the prices of small and medium titanium ore as raw materials also declined. In addition to the surge in ocean freight and the recovery of foreign titanium dioxide companies, export orders also weakened, and prices in some regions were also concessionary. Strong mentality, more purchases on demand, and overall weaker prices.


Yield analysis


According to statistics, the total output of titanium dioxide from January to June 2021 is about 1,909,800 tons, an increase of 18.58% year-on-year, and the output increased by about 300,000 tons compared with the same period last year. In the first half of the year, foreign market demand was strong, domestic export orders increased, and most titanium dioxide manufacturers maintained full production; as the market entered the off-season, market demand weakened, coupled with environmental inspections and other factors, most manufacturers planned for maintenance, and titanium dioxide output will decline. In the second half of the year, both the sulfuric acid method and the chlorination method will increase the release of new production capacity, and the output of titanium dioxide will also increase further. The annual output is expected to increase by 12-15%.

Since 2021, most manufacturers have maintained full production. In January, the upward trend at the end of 2020 continued. Manufacturers started operating normally. In February, due to the Spring Festival holiday, the market started down by 4.77%. , In June, some manufacturers carried out overhauls, the market started to decrease slightly, and the overall output still increased compared with last year.


Import and export data analysis


According to customs data, the cumulative imports from January to May are about 81,000 tons, an increase of 27.32% year-on-year, and the import volume from January to May 2020 increased by about 17,400 tons. The domestic market demand recovers and the market price of titanium dioxide is optimistic. Imports in the first half of the year The volume has increased.


Among them, the top three regions for imports from January to May are Taiwan, Australia, and Mexico, accounting for 32%, 18%, and 14% respectively.


Cumulative exports from January to May 2021 are about 540,000 tons, an increase of 13.01% year-on-year, and cumulative exports from January to May 2020 increased by 62,200 tons. In the first half of the year, foreign market demand was strong, and market export orders soared. In March, the export volume reached a certain new high in the past two years. The global economy improved, and foreign market demand remained strong. The export of titanium dioxide maintained a substantial increase, entering May-June. Due to the skyrocketing ocean freight, the growth rate of foreign titanium dioxide is relatively slow. The domestic price of titanium dioxide has no price advantage compared with foreign titanium dioxide, and export orders have also declined. It is expected that the export volume will decline in June. After the market has been adjusted, exports are expected to be able to continue. As a result, the export volume continued to maintain steady growth throughout the year.


Among them, the top three export countries from January to May are India, Brazil, and South Korea, which accounted for 12%, 8%, and 8% respectively; the outbreak in India in the first half of the year, exports to Indian countries decreased slightly in April and May, but the overall market exports Has little effect.


Apparent consumption

According to Tu Duoduo's data, China's apparent consumption of titanium dioxide from January to May 2021 is 1.13 million tons, an increase of 24% over the same period last year. The market demand growth is mainly due to a larger increase in exports, which is an increase of approximately 210,000 compared with the same period last year. Ton.


Market outlook analysis


Entering the off-season of the titanium dioxide market from June to July, the downstream market demand is general, and the terminal cost pressure is high, the titanium dioxide export pressure is great, and the market price has weakened. Some prices have fallen by 2,000 yuan/ton, and the market has no market. , The price will continue to weaken, although foreign prices will rise, but due to cost pressures such as ocean freight and the pressure on export prices, the later high prices will also decline.


Due to market and environmental issues, the number of maintenance companies in the market also increased in July. With the destocking pressure of companies and the recovery of market demand, coupled with the overall tight supply of raw material titanium ore and sulfuric acid, foreign RBM production was suspended and ILUKA Sierra Golden Red The shutdown will continue to increase the price of raw materials and will further promote the price of foreign titanium dioxide. It is expected that the market price will rebound after late August, and the market price will continue to rise steadily.

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