At the end of the year, titanium dioxide enterprises gathered together to release a price increase letter from industry insiders: it is difficult to implement

The price of titanium dioxide, which has been raised 11 times this year, is going to rise again. Following the price increase letter issued by the industry leader Longbai Group (002601 SZ) on December 13, China Nuclear Titanium dioxide (002145.SZ), Huiyun Titanium Industry (300891.SZ) and Panzhihua Titanium Sea Technology also issued price increase letters on December 14. The price increases of various titanium dioxide enterprises are the same, with domestic customers increasing by 1000 yuan / ton and international customers by 150 US dollars / ton, the implementation time is January 1 next year.

A person from titanium dioxide enterprises told the Financial Associated Press that at present, titanium dioxide is not particularly good, and a sudden price increase at the end of the year will stimulate shipments for large enterprises with high inventories.

Overseas enterprises drive up prices

According to a reporter from the Financial Associated Press, the price increase of Longbai Group has strategic implications. At present, more than 70% of Longbai Group's titanium dioxide products are exported. After the two foreign giants raised their prices, Longbai Group raised the price by 150 US dollars per ton, which is still competitive in the international market, especially in Southeast Asia. At present, the export of medium nuclear titanium dioxide in Southeast Asia is also doing well, and the rise in export prices is also good for the company.

From the customs sales data, at present, the export of titanium dioxide in China is rising in both volume and price. As of October this year, titanium dioxide exports have shown a year-on-year upward trend for seven consecutive months. In October this year, the average export price of titanium dioxide was 2918 US dollars / ton, up 60.56% from the same period last year, while the export volume rose 5.18% from the same period last year, and the cumulative export volume this year has reached 1.0545 million tons.

It is difficult to implement the price increase.

However, according to a reporter from the Financial Associated Press, although the export form of titanium dioxide in China is good, it is mainly because the prices of domestic products are relatively low, especially in the Southeast Asian market, but after the price increase, the acceptance of overseas markets is still unknown. Tian Xiaoyu also told the Financial Associated Press that taking into account the acceptance of downstream customers, the price increase of overseas orders will be specific to a single negotiation, so it is difficult to fully implement the price increase letter.

In the domestic market, it is also difficult for titanium dioxide enterprises to implement a price increase of 1000 yuan per ton. Some titanium dioxide listed companies told reporters that before the Spring Festival, downstream paint enterprises had a demand for raw materials, and prices were announced at this time. In order to save costs, these downstream enterprises with reserve demand may take the goods in advance and stimulate the inventory sales of large enterprises. But for enterprises with small inventory and no goods to sell, the impact will not be too great.

Moreover, at present, the titanium dioxide industry is in sufficient supply, and there will be no rush to catch up with the trend. As of last week, the operating rate of domestic enterprises was 76.11%.

From the raw material supply side, the current trend of titanium concentrate is relatively weak. The latest quotation of Panzhihua National Titanium Science and Technology is 2150 yuan / ton, which is about 300 yuan / ton lower than the high point of the year. The price of sulfuric acid is now about 430 yuan / ton, nearly halving from the high price of the year. The price of raw materials continues to fall, and it is difficult to support the implementation of price increases for titanium dioxide enterprises.