January 28, 2022

Titanium dioxide enters honeymoon

Today, the titanium dioxide market has raised price information. Since May 10, 2016, Panzhihua Titanium Technology has increased the price of anatase titanium dioxide by RMB 300/ton, which is immediately implemented. Another source said that in the middle of this month, the market will rise again, and it will be heard that traders are ready to go up. Then will the market continue to increase prices in the next period of May?

Supply and demand are the fundamental factors that determine prices. After the wave of price increases in 2016, the supply and demand level has become more and more determined; it can be said that the rise at the beginning of the year is the self-salvage of enterprises in struggle, but with The market price is getting higher and higher. Currently, most of the domestic mainstream offers of sulfuric acid rutile and anatase titanium dioxide are available at RMB 10,300-12,000/ton and RMB 9,000-9,800/ton. The supply and demand side has become an indispensable factor. power.

The supply is still in recovery

Recently, the People's Daily published an article. Authoritative sources stated that the Chinese economy is in an L-shape, the economy has gradually stabilized, and the market's vitality is slowly recovering. The titanium dioxide industry is affected by the big environment and is also in recovery. In 2015, due to the weak downstream demand, the supply of titanium dioxide was not viable. The total production of titanium dioxide was 2.323 million tons, which was a decrease of 112,000 tons compared with 2.435 million tons in 2014, a year-on-year decrease of 4.6%. This is the first time in 17 years that China's titanium dioxide industry has witnessed a decline in total industry output. A total of 19 companies with declining output have fallen by as much as 40% to 69%. In 2016, with the increase in prices, the recovery of downstream coatings and plastics industry, and the strong atmosphere in many industries, and the multiple factors of increasing the enthusiasm of distributors and downstream factories, the supply of titanium dioxide will see hope again. The operating rate of white powder is between 6 and 7 percent. From May's perspective, as companies continue to push up, corporate profits improve, coupled with continued downstream recovery, some companies still have incremental plans to start construction, and it is expected that there will be an increase in the start of the industry in the future. The traditional peak season is gradually ending and it is expected that there will be limited room for improvement.

Exports become new highlights of demand

According to statistics provided by the General Administration of Customs, in March 2016, the export of titanium dioxide in China was 61,023.482 tons, an increase of 30.15% year-on-year, an increase of 36.55%. Titanium dioxide total exports in January-March 2016 were 157,724.871 tons, a year-on-year increase of 15.04%. Among them, Sichuan Longjing exports 24,800 tons, ranking first, Henan Li Lilian 0.91 million tons, China Nuclear Power Huayuan 0.55 million tons, Shandong Dongjia 0.52 million tons, Shandong Daan 0.37 million tons, divided into two to five. In January-December 2015, the total volume of titanium dioxide exported was 538,000 tons, a decrease of 2.55% year-on-year. Looking at the current development trend, the export situation in 2016 will be better than 2015 and will become a new bright spot for supplementing domestic trade. The demand in the domestic market still relies on the development of the entire domestic economy. Real estate is the lifeblood of the Chinese economy and is the “lifeblood” of titanium dioxide. Although the demand is picking up, there is no such a buzzing market imagination.

Taken together, the continued rise in prices of titanium dioxide in May should be a matter of course. People want to continue to think about the supply and demand side of the market, and it is hard to see the titanium dioxide market has entered a long-lost “honeymoon period”.

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