Titanium dioxide enterprises set off the fifth round of price rise this year, the market price remains strong and strong.

On the morning of May 8th, the innovative project of upgrading Panxi titanium concentrate to titanium chloride slag of 500000 tons of Panxi titanium concentrate of Longpan Bailian Group, a key industrialization project in Sichuan Province, was officially put into operation, indicating that Panzhihua City has entered a new stage in promoting the deep development and utilization of vanadium titanium magnetite.

It began in May, although the titanium dioxide price market remained strong and strong despite the interval of the five-day short holiday. Up to now, just a few days after May Day, 19 manufacturers, including Anhui Anada Titanium Industry (002136), Hengtong Titanium Industry, Fumin Longteng Titanium Industry, Jiangsu Zhenjiang Titanium dioxide, Shandong Dongjia Group, Jinpu Titanium Co., China Nuclear China original Titanium dioxide and Shandong Dawn Titanium Industry, have issued letters announcing an increase of 1000 yuan / ton, including Anhui Anada Titanium Industry (002136), Hengtong Titanium Industry, Fumin Longteng Titanium Industry, Jiangsu Zhenjiang Titanium dioxide, Shandong Dongjia Group, Jinpu Titanium Co., Ltd. In addition, several manufacturers in southwest China and other regions have risen 800-1000 yuan / ton without correspondence, following the favorable atmosphere in the market. The price market has been the fifth round of price increases this year, rising for 11 months in a row since July 2020. it almost equals the record of the longest continuous rise of titanium dioxide in 2016, and the price market remains strong. The real unit prices of sulfuric acid rutile and anatase have been close to 21000 yuan / ton and 19000 yuan / ton, and the price hardness of the consignor is relatively high. It is more contradictory to the low-price inquiry and is more inclined to the cash order.

Yang Xun, an industry analyst and analyst of Yan Ti titanium industry, pointed out that at present, the confrontation in the trading market is still obvious, and the price market is in a state of game. It is mainly reflected in two aspects: on the demand side, the plastic color masterbatch industry has entered the off-season, and the overall demand has declined; second, the cost is difficult to transmit downward, and it is more resistant to high-price titanium dioxide, so it simply stops production; third, high-price titanium dioxide forces end customers to try in the direction of substitutes. For example, Omea (OMYA), a multinational manufacturer of industrial mineral products in Switzerland, has successively launched three types of functional calcium carbonate, which can reduce the amount of titanium dioxide by 10-20%. It is reported that the three types of functional calcium carbonate originated in Indonesia, especially in paints, architectural coatings, powder coatings and inks and other industries.

On the supply side, first, the price of titanium concentrate is always high, and the raw material cost of titanium dioxide remains high; second, foreign trade orders are in the majority, and the main manufacturers have taken orders up to June; third, the vast majority of producers and channels are tight on the spot, especially some main brand products; fourth, environmental inspection and sudden incidents have caused some regional producers to stop production; fifth, some producers have switched to rutile crude products, and some anatase products are in short supply.

Yang Xun believes that manufacturers control the supply of goods, and most of them are relatively strong, and the supply of agents can be basically guaranteed, and there is also a reduction in quantity and supply, which aggravates the spot tension in the terminal market. customers for a large number of spot and the price is lower than the factory price of 200-300 yuan / ton of the holder should do a good job screening, the more spot tension, the more cautious trading.

At present, the mainstream quotations of most sulfuric acid rutile and anatase titanium dioxide in China are 19800-21000 yuan / ton and 18300-19000 yuan / ton. the mainstream prices of domestic and imported chlorinated rutile titanium dioxide are 21500-23500 yuan / ton and 27000-28500 yuan / ton (all above are tax cash out of the warehouse price).

Speaking of future forecasts, Yang Xun believes that the domestic titanium dioxide price market is strong, and titanium dioxide has continued to rise for 11 months. at present, large manufacturers have announced an increase of 1000 yuan per ton, and other manufacturers may follow suit. The May Day short holiday has not disturbed the bullish rhythm of the price market. In the short term, the game between the two ends of supply and demand is obvious, the demand enters the off-season, the terminal is more resistant to high-level titanium dioxide; the cost of the supplier is high, the export is smooth, the spot is tight, the start-up is low, and the "hard-core titanium dioxide" is stable. If there is no demand support, the medium-and long-term market trend is not clear, but the profit in May is as expected, the current real unit price is strong, and according to the spot situation.

Yang Xun told reporters that since April, the titanium dioxide price market has remained high, the acceptance of high prices in the terminal market has not met expectations, the confrontation between supply and demand is obvious, and the price market is still in a state of game. as soon as the downstream customer pressure cannot be transmitted downward, production will stop, while producers on the supply side have "10,000" reasons to continue to raise prices, such as leading large miners to continue to rise 100 yuan / ton. It makes the price of Panxi titanium concentrate market higher as a whole; Export orders have been received softly, which has already been received in June; the operating rate of some manufacturers is not high, the inventory position at the source is low, and so on, which is also a real fact. Therefore, when the price of titanium dioxide is high, the confrontation between domestic supply and demand is obvious.

At the end of April, the large miners in Panxi increased by 100 yuan / ton, while the surrounding miners Synchronize implemented an increase. Theoretically, the raw material cost of titanium dioxide increased by 250 yuan / ton. From the point of view of raw material boost, the price of titanium dioxide is still likely to continue to rise. At present, it is obviously difficult for downstream customers to accept high-end titanium dioxide. Some of them have been in stock around June. The mood of "sitting on the mountain and watching the tiger fight" is strong, and the continuously rising market has forced customers to substitute. For example, Omea (OMYA), a multinational manufacturer of industrial mineral products in Switzerland, has launched three types of functional calcium carbonate, which can reduce the consumption of titanium dioxide by 10-20%, according to reports. These three kinds of functional calcium carbonate are native to Indonesia and are very effective in paints, architectural coatings, powder coatings and inks.

According to statistics provided by the General Administration of Customs, titanium dioxide exports totaled 1.21407749 million tons in 2020, an increase of 20.99 percent over the same period last year. Exports to India were 135829.783 tons, accounting for 11.18 percent of the total exports, almost maintaining the total national exports of 10, 000 tons per month.

Yang Xun analysis believes that the epidemic situation in India is grim, the same as in the past, the subsequent storage and closure of countries may, titanium dioxide export to India there is a serious risk, titanium dioxide export market contraction risk.