[SMM Analysis] Titanium dioxide market saw second wave of price increases

Export orders performed well before CNY holidays. The inventory pressure faced by titanium dioxide companies dropped sharply, and the production and sales of the titanium dioxide market have been balanced. Some titanium dioxide companies arranged orders until March, and some titanium dioxide models are in short supply. The titanium dioxide market has begun the second round of price increases of the year. As of last Friday, the mainstream market price of rutile titanium dioxide was 16,200-17,200 yuan/ton; the mainstream market transaction price of anatase titanium dioxide was 14,500-15,200 yuan/ton, and the price of titanium dioxide was relatively strong.
According to SMM, the second round of titanium dioxide price increases is mainly due to increased production pressure caused by upstream titanium ore price increases, titanium dioxide companies' spot shortages, and downstream titanium dioxide demand companies' optimistic expectations for the future of titanium dioxide. Multiple factors such as titanium dioxide caused a second wave of price increases in the titanium dioxide market.
From a cost perspective, the supply of raw material titanium ore is tight and prices are rising at a high level. The mainstream market transaction price of domestic titanium concentrate (TiO2 ≥ 46%) is 2250-2300 yuan/ton, 10 yuan/ton higher than last Friday. Considering that the current supply of titanium dioxide exceeds demand, it is expected that the price of titanium dioxide will be strong in the future, and SMM will continue to pay attention to subsequent changes in spot transactions.