The hottest titanium dioxide prices soared, and do

2022-09-19
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Titanium dioxide prices soared, downstream enterprises under pressure

since the end of 2015, affected by the "double increase" in raw material prices and environmental protection costs, the domestic titanium dioxide industry has set off a round of continuous price rises. Up to now, the titanium dioxide industry has developed rapidly, and its price has risen round after round. The surging price rise has not only achieved titanium dioxide enterprises, but also led to the struggles of countless individuals in the downstream

it is understood that enterprises including Jiangsu Zhenti Chemical Co., Ltd., Panzhihua haifengxin Chemical Co., Ltd. and Yunnan Metallurgical Xinli titanium industry announced price increases at almost the same time. From January to May this year, this is the fifth round of price increase of titanium dioxide. The price of titanium dioxide has increased by more than 76% since the beginning of last year

according to the statistics of public data, the closing price in 2016 was 15300 yuan/ton, while the price at the beginning of the year was only 10900 yuan/ton, with an annual increase of 40.36% and an increase of nearly 5000 yuan per ton

at the beginning of February this year, chemours, the world's largest enterprise, announced that from March 1, 2017, it would raise the prices of all grades of Ti pure titanium dioxide sold in North America, Canada, Asia Pacific, Latin America, Europe, the Middle East and Africa. Among them, the Asia Pacific region increased by $150/ton; North America and Canada increased by 0.06 US dollars/pound; Latin America, Eastern Europe and other countries increased by $200/ton; Western and central Europe increased by 200 euros/ton

subsequently, Huntsman also announced an increase in the price of titanium dioxide (titanium dioxide) pigments sold worldwide. Among them, Europe, Africa, the Middle East and Latin America increased by 235 euros/ton or 250 dollars/ton, and Asia Pacific increased by 160 dollars/ton. The price increase will take effect from April 1, 2017; North America raised the price by US $0.07 per pound, which took effect on March 1, 2017

as foreign titanium dioxide giants Kemu and Huntsman have adjusted their product prices, it also seems to indicate that the domestic titanium dioxide price is about to enter a new round of price rise

new thinking style of price "manipulated"

in recent years, titanium dioxide enterprises have taken advantage of all kinds of good news to sit on the tuyere of price rise, and the price continues to rise without any intention of turning around. On May 2, Jiangsu Zhenti Chemical Co., Ltd. issued a price adjustment notice, saying that the company's titanium dioxide price will be increased from the same day, and the rutile price will be increased by 700 yuan/ton. On the same day, Yunnan daxiaotong titanium also announced an increase of 700 yuan/ton for rutile products and 500 yuan/ton for anatase products. Jinzhou titanium industry also announced a few days ago that the price of all models of products will be increased by 800 yuan/ton, with a loose structure

not only the above-mentioned enterprises announced an increase in the price of titanium dioxide, but more than a dozen titanium dioxide enterprises, such as longmang Baili, CNNC titanium dioxide, Dongjia group, Yumen Jingyang, Xingmao titanium, Anhui super color, Guangxi Detian, increased by about 1000 yuan per ton. Even the smaller titanium dioxide enterprises in China also increased by about 800 yuan per ton

according to the data provided by the business society, as of May 2, the price of titanium dioxide increased by 20.35% compared with the average price at the beginning of 2017, and 76.33% compared with the beginning of 2016

for the rising price of titanium dioxide, some industry observers lamented that titanium dioxide has increased by more than a dozen rounds, and the time and amount of each round of price increase are amazing coincidence. The observer believes that this must be a pre negotiated price rise

Yang Xun, an analyst of titanium dioxide industry of business club, believed in an interview with China National classic that at present, domestic large and medium-sized production enterprises have sufficient orders, and they also need to limit the quantity of goods taken by traders or terminals. Moreover, exports are relatively good, there is no pressure on inventories, and the price rise is still strong

it is worth mentioning that the rise in the price of titanium dioxide has also brought considerable profits to enterprises, and the net profits of major titanium dioxide enterprises have also increased beyond expectations, making a lot of money. For example, the net profit of Jinpu titanium industry in the first quarter of 2017 was as high as 53.2714 million yuan, an increase of 239.40% year-on-year. It is understood that the company achieved an operating revenue of 465.2 million yuan in the quarter, an increase of 177.31% year-on-year. In addition, longmang Baili's net profit in the first quarter of 2017 reached 585 million yuan, a year-on-year increase of 3440.83%

the first quarter report of CNNC titanium white also said that the operating revenue in the first quarter reached 997 million yuan, an increase of 79.8% year-on-year, and the net profit reached 118 million yuan, a year-on-year increase of 35.3775% The company expects the change range of net profit in the first half of the year to reach 200million yuan to 250million yuan, an increase of 1790/75% to 2263.44%

in fact, from the perspective of "equivalent", the price of titanium dioxide is really high now. Behind the corporate profits under high prices are the year-on-year rise in product volume and price

comprehensive cost causes "Butterfly Effect"

why is the price of titanium dioxide so crazy? The so-called titanium dioxide, whose scientific name is titanium dioxide, is a dye and pigment (white powder). Titanium dioxide is an important raw material in industrial production. It is widely used in coatings, plastics, rubber, cosmetics, ceramics, electronics, medicine and other industries

Zeng Haiwei, President of South China intelligent Innovation Research Institute, believes that national supply side reform and stricter environmental protection have eliminated a number of titanium dioxide production enterprises with small scale and low efficiency. Therefore, titanium dioxide enterprises will gradually return to a rational, healthy and orderly development state

it is not difficult to see that the rise in the price of titanium dioxide is the inevitable result of the benign development of the market. It is understood that as early as 2015, the price of titanium dioxide continued to decline, which made it difficult for many enterprises to seek benefits. Some enterprises finally withdrew from the industry because they could not withstand the price decline. Zhu Lin, an analyst at Zhongyu information, said in an interview with zhongguojing that in 2015 alone, 400000 foreign production capacity was shut down and nearly 300000 domestic production capacity was withdrawn. The total production capacity removed was 700000 to 800000

"under the pressure of environmental protection, domestic enterprises have been controlling production capacity during production, which also leads to tight inventory of manufacturers, which will also cause prices to continue to rise." Zhu Lin believes that the supply and demand of upstream and downstream are also important driving forces. From the upstream, the price of titanium ore, the raw material of titanium dioxide, has continued to rise, from 520 yuan at the beginning of 2016 to 1850 yuan now, an increase of more than twice; From the downstream demand side, titanium dioxide is mainly used in coatings, and the output of coatings is also rising steadily in 2016. The upstream supply and downstream demand together led to the rise of titanium dioxide prices in 2016

data show that in 2016, the export volume of titanium dioxide was 720500 tons, a significant increase of 33.82% over 2015. In 2017, the domestic export volume of titanium dioxide reached 111500 tons, an increase of 15.31% compared with the same period last year

according to the analysis of insiders, the rising prices of upstream raw materials and downstream, and the continuous growth of export volume have supported the rise in the price of titanium dioxide

some insiders believe that the increasing logistics costs also increase the cost pressure of titanium dioxide enterprises. Therefore, manufacturers can maintain the current situation of enterprises only by raising the price of titanium dioxide

coating and other industries are under pressure

under the soaring price of titanium dioxide in China, it is also the struggle of countless downstream enterprises. As the biggest victim of this round of crazy price rise of titanium dioxide, it is undoubtedly the paint market. In the use of titanium dioxide, coatings account for up to 60%

however, in recent years, the signs of recovery in the paint Market seem to be still on the way. With the rising price of titanium dioxide, the cost pressure in many paint markets is increasing

Zeng Haiwei told that under the increasingly severe sales environment of the paint market, the continuous rise of raw materials will undoubtedly worsen the paint industry, and its enterprise costs are also soaring, which will also make it difficult for many paint manufacturers to bear pressure

some analysis articles believe that the titanium dioxide industry has been shuffled many times through years of price war, and the industry concentration is high. More than a dozen major titanium dioxide suppliers can raise prices together. Furniture paint is not good. At present, the whole industry is reshuffling, and the industrial concentration is not high. Some small and medium-sized furniture factories are sensitive to environmental protection, service and price. If the paint enterprise has just issued a price increase notice, the customer will consider changing the paint supplier tomorrow

however, there are optimistic views. According to some articles, as far as the current situation is concerned, in order to reduce the supply chain risk of raw materials, large paint enterprises usually hoard more raw materials. How can they support more than half a year and persist until the end of the year. Even if the price of titanium dioxide soars, it is not a big problem to maintain a month's production because large enterprises have sufficient raw material inventory, even if a car of titanium dioxide is not available

will the price of titanium dioxide soar next? Zeng Haiwei believed that due to the overall recovery of titanium dioxide and the strengthening of market demand, the market has the ability of independent research and development, and the demand exceeds the supply. Therefore, prices will continue to rise in the short term. In the long run, it also depends on the demand changes in the second quarter and the beginning of the third quarter, which is generally in a steady upward trend

Zhu Lin predicted that the high price of titanium dioxide would maintain stability in the short term, and the inventory of manufacturers would become increasingly tight, with the seller's market dominating. In daily life, under the premise of continuous good news in the international market, the export volume of titanium dioxide will also increase. It is likely to continue to rise in the future, but it will not exceed the maximum range of prices on the whole

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