Price trend
Take the sulfuric acid rutile titanium dioxide that has a large volume in the domestic market as an example. According to the data from SunSirs’ bulk list, the price of titanium dioxide is stable this week, with an average price of 13,533.33 RMB/ton.
Analysis review
From the end of June to the beginning of July, titanium dioxide companies successively issued price adjustment letters. According to incomplete statistics, 27 mainstream titanium dioxide manufacturers have issued price increases, including Panzhihua Hengtong Titanium, China Nuclear Titanium, Ningbo Xinfu Chemical, Jinpu Titanium, Panzhihua Oriental Titanium, Yunnan Dahutong, Guangxi Xilong Chemical, Lomon Baililian and other manufacturers that have announced the increase, and the mainstream rate is about 500 RMB/ton. Judging from the current price execution of various manufacturers, the effect of stopping falling and a slight rebound of some models has been basically achieved. It played a boosting role in the domestic price market and had a positive impact on the stability of the titanium dioxide market confidence.
According to customs’ data, China exported 485,800 tons of titanium dioxide from January to May 2020, an increase of 22.02% compared to the same period in 2019. Among them, in the first quarter, exports were 331,300 tons, comprehensive production data, exports accounted for 42.81%;The contraction in April and May was more obvious. The export volume was 88,100 tons and 66,500 tons respectively. According to comprehensive production data, exports accounted for 30.06% and 24.54%. The main reason for the change in export volume was the poor domestic demand in the first quarter, and the focus of manufacturers' transactions on exports. In the second quarter, the overseas epidemic broke out and the main export target countries were closed, which led to a reduction in export volume.
At present, as countries control the epidemic, downstream demand will gradually recover, the trading situation has improved compared with the previous period, and overseas orders have gradually returned. Driven by demand, the price of titanium dioxide has stopped falling and rebounded. This week, the price of titanium dioxide remained stable. The domestic ex-factory price of rutile-type titanium dioxide is 12,000-14,500 RMB/ton including tax, and the ex-factory price of anatase-type titanium dioxide is 10,300-11,800 RMB/ton. The price of chloride titanium dioxide is 15,500-20,000 RMB/ton.
In terms of raw materials, this week, the price of titanium concentrate in Panxi region was mainly high, and the supply of titanium ore was tight, and some mining companies suspended external quotations. Up to now, the price of titanium ore above 38 grade is 920-960 RMB/ton without tax, the price excluding tax of 46 grade 10 titanium concentrate is 1,380-1,450 RMB/ton, and the price of 47 grade 20 titanium concentrate is 1,300-1,400 RMB/ton. With the gradual boost of the cost of raw ore and titanium-medium ore, the price of titanium concentrate has continued to rise, coupled with the decline in spot outflows and the rebound of the main downstream titanium dioxide against the trend, miners are reluctant to sell.
Market outlook
The Titanium Dioxide Analyst of SunSirs believes that the leading enterprises in the titanium dioxide market have announced an increase, and some titanium dioxide models in the market have become tight, and the prices have rebounded. At present, the price of raw materials is tight and high, and the pressure on the cost of titanium dioxide is increasing again. It is expected that the market price of titanium dioxide will gradually rise in the short term based on a stable market.
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