The analysis of the price increase of 20 titanium dioxide manufacturers, such as medium nuclear titanium dioxide, said that the short-term implementation effect may be lower than expected.

After the Qingming Festival, the titanium dioxide market continues to be hot, with medium nuclear titanium dioxide (00145.SZ) and Jinpu titanium industry (000545.SZ) successively issuing product price increase announcements. China Nuclear Titanium dioxide staff said that the current round of price increases are affected by costs and supply and demand, and prices will show an upward trend in the future. However, including the nuclear titanium dioxide industry insiders said frankly, the current downstream of the price resistance.

According to the above staff of China Nuclear Titanium dioxide, theoretically, the second quarter is the off-season, but now the supply is tight, and the contradiction between supply and demand will continue for some time. The driving factor of this round of price increase is cost, the prices of titanium concentrate, sulfuric acid and other raw materials are all rising, and the cost and supply and demand make it difficult for the price of titanium dioxide to fall, and the company's price increase is also consistent with the industry. The specific implementation effect of this round of price adjustment needs to be further observed.

According to statistics, before and after Ching Ming Festival, a total of 20 titanium dioxide manufacturers raised product prices. Tian Xiaoyu, an analyst in the titanium dioxide industry, revealed that according to the feedback from some production enterprises that announced the price increase, before the announcement of the price increase today, the procurement execution price of downstream customers was 19300-19500 yuan / ton, with a large order of more than 100 tons, and there was no much preferential room for price implementation. generally speaking, the performance of new access orders before the announcement of price increase was not as optimistic as that after the Spring Festival, reflecting the buyer's resistance to the new price to a certain extent. Before the announcement of the price increase, the new order transaction also shows that the seller's price increase has the purpose of stimulating the downstream to pick up the goods at the old price position.

The cost pressure of titanium dioxide manufacturers is great in the near future. According to statistics, the national average price of titanium concentrate (TiO2:46%) in April was 2250-2350 yuan / ton, up 7.09% from the previous month and 59.82% from the same period last year. The average price of sulfuric acid in Shandong and East China in April was 390-550yuan / ton and 430,620 yuan / ton respectively, up 10.69% and 7.67% from the previous month, and 322.6% and 362% respectively over the same period last year. Tian Xiaoyu said that the sharp rise in sulfuric acid prices is related to the production restrictions or maintenance of many acid enterprises, and the sulfuric acid market has a hot trading atmosphere.

The coating industry is an important downstream of titanium dioxide. Investors who have contact with three trees (603737.SH) told reporters that paint industry leaders like Sankeshu generally have strategic cooperation with titanium dioxide enterprises, purchasing according to actual orders every year, and may take corresponding measures to increase the price of titanium dioxide upstream. The company's peak season is calculated in the third or fourth quarter, and it is relatively mediocre recently.

Tian Xiaoyu said that since the titanium concentrate link gave April cost strong support at the end of March, titanium dioxide manufacturers immediately responded on the price, so it is normal for the seller to focus on pulling up at this stage, but for the acceptance of the current price, the buyer shows little room for improvement, and the seller pulls up by a wide range, and the short-term implementation effect may be lower than expected. The price increase of titanium concentrate will be the digestion stage, the titanium dioxide enterprises still have more optimistic orders on hand, and the rigid demand for titanium concentrate still exists, so the implementation effect of the ore price may be close to the range of the announced price increase, and the support of the cost side in the future will not shrink.