The second wave of price increases in the titanium dioxide market begins
Abstract
The titanium dioxide market has experienced a round of generally rising in the early stage, and after entering August, it has started a collective price increase.
The titanium dioxide market has experienced a round of generally rising in the early stage, and after entering August, it has started a collective price increase.
On August 4, Qianjiang Fangyuan Titanium Dioxide, Panzhihua Tidu Chemical Industry, and Panzhihua Tianlun Chemical also issued price increase letters, raising the price of titanium dioxide by 500 yuan/ton and the export price by US$80/ton. On the evening of August 6, the industry leader, China Nuclear Titanium Dioxide, also issued a price increase notice, raising the price of its products by the same amount. After that, various companies followed the price increase, and the industry's popularity increased greatly.
It is worth noting that this is the third price increase for China Nuclear Titanium Dioxide this year.
China Nuclear Titanium Dioxide Price Adjustment Record in 2020
February 26
The sales price for domestic customers is raised by RMB 500/ton, and the export price for foreign customers is raised by USD 100/ton.
July 13
The sales price for domestic customers is raised by 500 yuan/ton, and the export price for international customers is raised by US$80/ton.
August 6
The sales price for domestic customers is raised by 500 yuan/ton, and the export price for international customers is raised by US$80/ton.
From January to June this year, affected by the epidemic, the price of titanium dioxide continued to decline, with a drop of about 20%. With the epidemic under control, the gradual recovery of demand, and the rising costs caused by the price increase of domestic Panzhihua titanium concentrate and imported African ore, the price of titanium dioxide rebounded strongly after hitting a low level in mid-July. Throughout July, there were more than 30 Companies issued price increase letters generally requesting price increases ranging from 500-600 yuan per ton.
The price hike in August may mainly come from the recovery of demand in foreign markets.
According to statistics from the General Administration of Customs, China's export volume of titanium dioxide in June 2020 was 77,300 tons, a month-on-month increase of 10,800 tons or 16.28%, and a year-on-year decrease of 7.5%. The cumulative export volume from January to June was 563,100 tons, an increase of 16.9% year-on-year.
In addition, the early price decline and the impact of the epidemic have led to a low operating rate of domestic titanium dioxide companies. At the beginning of the year, the impact of the epidemic caused the operating rate to drop to 50%, and this value returned to 75.38% in July. Under normal circumstances, the average operating rate of the titanium dioxide industry is around 80%. Consumption of inventory and low operating rate also make the market supply less pressure, which can further support market price increases.
Manufacturers have higher confidence in the market in the third and fourth quarters. September and October will be the traditional peak season for the titanium dioxide industry. With the increasing pressure on real estate delivery in the second half of the year, coupled with the stimulus effect of a series of automobile-related policies issued by various regions in the second quarter, the domestic demand for titanium dioxide will be three There will be a big increase in the fourth quarter.
Titanium dioxide is known as "industrial monosodium glutamate" and "the king of white pigments". It has non-toxicity, best opacity, best whiteness, brightness and good UV resistance. It is considered to be the most powerful in the world today. Good white pigments account for about 80% of all white pigments used. They are widely used in construction and industrial coatings, plastics, paper, textiles and other fields.
Titanium dioxide is generally divided into anatase type (referred to as A type) and rutile type (referred to as R type) according to the crystal type. The downstream applications of titanium dioxide are extensive, and coatings are the most important downstream industry, accounting for more than 50% of the applications of titanium dioxide.
Rutile titanium dioxide is the most versatile, mainly used in exterior wall paint, coatings, plastics, rubber, ink and other fields; anatase titanium dioxide is mainly used in light-colored indoor paint, papermaking, chemical fiber matting and other occasions.
China is a major producer of titanium dioxide, with more than 50% of the world's titanium dioxide production capacity. The domestic market production capacity is mainly concentrated in companies such as Lomon Baili, China Nuclear Titanium Dioxide, Shandong Dongjia, Jinpu Titanium Industry, and Pangang Group. In 2019, China's total export of titanium dioxide was 1.035 million tons, a year-on-year increase of 10.52%, and the export volume ranked first in the world.
Source from MOLBASE
