Monthly Review of the Titanium Market: Raw Material Prices Fluctuate at Highs, Titanium Dioxide Prices Continue to Rise [SMM Analysis]

This month, the titanium dioxide market continued the pre-holiday upward trend, ushering in the second wave of price increases this year. Currently, the price of sulphuric acid process rutile titanium dioxide is quoted at 14,000-14,900 yuan/mt, while anatase titanium dioxide is quoted at 12,500-13,000 yuan/mt.

In terms of raw materials: major manufacturers in Panxi controlled the external shipment of raw ore, leading to tight raw material supply and high costs in the market. However, with ore prices fluctuating at highs, downstream titanium dioxide enterprises are facing significant cost pressure, with production hovering around the cost line. Some enterprises are experiencing slight losses, making it difficult to accept high-priced ore. In the short term, the domestic ore market is showing a supply and demand stalemate, with ore prices remaining at high levels.

In February, during the Chinese New Year, timely maintenance by titanium dioxide enterprises reduced supply. After the holiday, many titanium dioxide enterprises issued price adjustment notices, ushering in the second wave of price increases this year. Influenced by the sentiment of "rush to buy amid continuous price rise and hold back amid price downturn," the shipment volumes of titanium dioxide enterprises increased significantly. Some brands from certain enterprises faced tight supply, and some enterprises had low inventory levels. Due to consecutive rounds of price increases in the market, downstream enterprises were cautious about purchasing at new prices. By the end of February, enterprises that had undergone maintenance earlier gradually resumed production. It is expected that production will increase in March, keeping pressure on the domestic sales market high. Some market participants are not optimistic about the future. Meanwhile, tight raw material supply and the potential for further price increases provide some support to the market. It is expected that the titanium dioxide market will remain stable in the future, with room for further increases in some transaction prices.