Titanium dioxide market starts to rise

Since the middle of May, the overall market price of titanium dioxide in China has been strong, and the confidence of the supply side has increased. A small number of manufacturers have followed the promotion of the dragon enterprise, opening a new round of small-scale price adjustment. At present, the mainstream prices of rutile and anatase titanium dioxide by sulfuric acid process in China are 19800-21500 yuan (ton price, the same below) and 18500-19800 yuan respectively, and the mainstream prices of domestic and imported rutile titanium dioxide by chlorination process are 23500-26000 yuan and 30500-32000 yuan respectively.

On May 12, Longbai Group Co., Ltd. took the lead in issuing an increase letter, which raised the original price of chlorinated titanium dioxide by 700 yuan, and that of R-996, lr-108 and lr-972 sulfuric acid titanium dioxide by 500 yuan. Subsequently, Zhonghe Huayuan titanium dioxide Co., Ltd., Yibin Tianyuan Haifeng Hetai Co., Ltd., Panzhihua tihai Technology Co., Ltd., Fumin Longteng Titanium Industry Co., Ltd. successively sent letters to follow up, raising the sales price of titanium dioxide by 500~700 yuan. In addition, the international titanium dioxide giant tenor also announced that from July 1, except Japan, the price of titanium dioxide sold in the Asia Pacific region will be increased by $300.

Stimulated by the positive information, some users in the hesitant stage also began to place orders, which increased the order volume of titanium dioxide trading market compared with the previous time, and the overall price was slightly firm. The purpose of this small-scale price increase letter was basically realized.

The increase is reasonable, mainly based on several factors: first, the domestic and foreign trade orders of major large-scale production enterprises are full, and there is no inventory pressure for the time being; Second, the prices of raw materials such as sulfuric acid and titanium concentrate remain high, and the costs of production enterprises remain high; Third, the logistics cost has risen, and the comprehensive delivery price of actual orders has risen. In addition, international production enterprises such as Kemu and tenor also played a role of peripheral contrast.

However, affected by the epidemic situation in East China and other regions, the delivery of titanium dioxide in the market has not yet returned to the ideal state. A wave of price increase letters from leading enterprises disrupted the industry's conventional judgment on the market rhythm. Judging from the current pace, there were production enterprises that went down slightly before, or temporarily maintained new prices; After the leading enterprises, the production enterprises that set prices also temporarily operated steadily. The probability of the overall titanium dioxide price escarpment change is relatively small, and most of them are mainly high-level stability maintenance operation.

Since May 23, the price policies of the vast majority of domestic titanium dioxide manufacturers have been basically finalized, the market trend is relatively clear, the confidence of the supply side is enhanced, and the space for actual single price negotiation is gradually reduced compared with the previous period. In the future, the industry development and market trend will ultimately be influenced by large-scale production enterprises or large-scale dealers, and the strong will always be strong. In addition, the cost of raw materials such as sulfuric acid and titanium concentrate is high, and the profit space of each production enterprise is compressed. In order to make life easier in the future, the production enterprises tend to use a variety of operations to keep the titanium dioxide market at a high level and operate with small fluctuations.

The epidemic affected the poor road transportation and the import and export market. Therefore, the domestic demand for titanium dioxide has not changed significantly, and the export orders of some second - and third tier manufacturers have decreased recently. However, the rigid demand still exists, which also has a certain support for the current titanium dioxide market. As the domestic epidemic situation eases, coupled with the promotion and stimulation of the price rise of dragon enterprises, it will be beneficial to the titanium dioxide market. It is expected that the short-term titanium dioxide price will remain high and firm.

Some manufacturers' price increase letters have basically stimulated demand. As the epidemic situation in the Yangtze River Delta has been gradually controlled, some regions are about to be unsealed. Once the logistics is restored, some users will start production from the end of May to the beginning of June, and the downstream demand may have a small upsurge in purchasing. Therefore, the titanium dioxide market has insufficient downward space, and the price is expected to remain at a high level. We believe that the actual price of titanium dioxide still depends on the order, quantity and freight.