In February, the market price of titanium dioxide can be said to have caught the end of the month, and most manufacturers announced an increase of about 500 yuan/ton. As manufacturers in Guangxi, Jiangxi, Shandong, Jiangsu, Anhui and other regions resume production one after another, the shortage of market spot may be eased.

Since the Spring Festival, the downstream comprehensive start of titanium dioxide has increased significantly, and the number of orders signed by holders has also increased. The key pain point in the actual trading market is still on the logistics side. Raw materials cannot be imported and finished products cannot be shipped. Affected by the epidemic, due to transportation difficulties, titanium dioxide raw materials and products cannot be transported in time, leading to insufficient stocking companies or domestic trade-based companies or reductions or suspensions due to raw material shortages and cost inventory pressures. The operating rate is only maintained at About 70% is lower than the same period last year. However, with the gradual control of the epidemic situation and the gradual recovery of local logistics, the resumption rate of enterprises will further increase, indicating that the market can be expected in March.

Market starts to increase, titanium dioxide companies announce rise

Since February, as downstream customers have resumed work one after another, the purchase tide of titanium dioxide has gradually started, and titanium dioxide companies have also initiated a new wave of price increases. On February 11, Lomon Barry Alliance announced that 108 grades will increase by 800 yuan/ton, and other sulfuric acid grades will increase by 500 yuan/ton. Venator, the third largest overseas titanium dioxide company, announced that its global titanium dioxide prices have risen, of which the Asia-Pacific region has risen by US$120/ton.

Immediately after February 25, China Nuclear Huayuan Titanium Dioxide decided to increase the sales price of various grades of titanium dioxide of the company by RMB 500/ton for domestic customers and USD 100/ton for international customers from February 26. On February 26, Shandong Jinhai Titanium Industry issued a price increase notice. From now on, domestic trade customers will increase RMB 500/ton, and foreign trade customers will increase USD 80/ton. On February 27, Haifengxin Chemical in Panzhihua City issued a price adjustment letter stating that due to the increase in raw material prices, the manufacturing cost of titanium dioxide has risen sharply, and it has decided to increase the company’s rutile series of titanium dioxide by 500 yuan from the current price. RMB/ton. On the same day, Panzhihua Tihai Technology decided to increase the domestic trade price of rutile and anatase titanium dioxide by 500 yuan/ton, and the foreign trade price by 100 yuan/ton respectively. On February 28, Yunnan Dahutong and Kunming Donghao Titanium Industry Both announced that the rutile series and anatase series sold by the company on the same day will be increased by 500 yuan/ton, and the export price will be increased by 80 US dollars/ton. On February 29, Shandong Dongjia Group, Yumen City Jingyang Titanium Dioxide, Guangxi Germany Four titanium dioxide companies, Tianhua and Qianjiang Fangyuan Titanium Dioxide, issued a notice to adjust the price of titanium dioxide. Dongjia decided to increase the domestic sales price of rutile titanium dioxide by RMB 500/ton and the foreign sales price by RMB 80 from March 1st. USD/ton. Jingyang Company and Detian Chemical raised the ex-factory sales price of anatase titanium dioxide by RMB 500/ton on March 1. From March 3rd, the prices of rutile and anatase titanium dioxide will be increased by RMB 500/ton, and the export price will be increased by USD 80/ton. On March 1, Panzhihua City Zhengyuan Technology decided to increase the company's anatase titanium dioxide by RMB 500/ton from March 2. Up to now, a total of 13 titanium dioxide manufacturers across the country have announced their price increases.

The industry generally believes that this round of price increases is not sudden. The main reason is that the raw material titanium concentrate is low in price and high in price. Some manufacturers have ordered the goods at high prices, but they are transported without vehicles, which affects the operating rate. What is more, they cannot buy raw materials with money.

Logistics and transportation recovery, the export market will continue to increase

In late February, the country entered the peak of resuming work and returning. Manufacturers and distributors of titanium dioxide have gradually submitted applications to start the resumption process. The overall operating rate is not high, mainly due to poor logistics and shortage of raw and auxiliary materials. Manufacturers are forced to do so. Reduce operating rate or stop production. At the same time, the sales side is also affected by logistics. Although it is recovering and highways are free, delivery difficulties still exist, which has led to a sharp increase in inventory pressure of individual manufacturers.

After the epidemic, as far as the domestic market is concerned, demand will definitely recover in an explosive manner. The current spot tension or instantaneous intensification, the price increase has become a matter of course. At this time, the supply of raw and auxiliary materials and equipment at the production end The start of production and smooth logistics delivery put forward higher requirements. It is believed that the power of the people in China and the whole world will quickly eliminate the epidemic, and a large-scale supply and supply battle will begin.

According to Yantai Yunshang, what needs to be solved urgently is to restart logistics and transportation. At the moment of the epidemic, due to regional isolation, there are fewer carriers returning to the front line and available for work. Currently, East China and other regions are gradually liberalizing, and most of the leased line logistics are less than Cannot be allotted, especially in Hubei Province to prepare for long-term suspension. Some comprehensive warehousing and logistics bases in East China have resumed work, and there has been a centralized outbreak of pickup and unloading of vehicle transportation. The industry predicts that such centralized and explosive transportation may last for about two weeks.

Shanghai Yantai Industrial Co., Ltd. said that the company has multiple transportation vehicles and can guarantee logistics delivery in some end markets at this stage. Affected by the epidemic, due to restrictions on transportation in some ports, export orders for titanium dioxide have not been delivered smoothly. Some international customers use stocking, some have to wait for delivery, and some use international brands as temporary substitutes, but my country’s main titanium dioxide manufacturers are foreign trade The delivery of goods is still not bad, and the total export volume in February reached a new high, which played a role in stabilizing the military spirit on the export side. With the recovery of port logistics, the export market in 2020 will continue to maintain a trend of rapid growth.

Market outlook real order operation prices or firm up

At present, the mainstream quotations of most domestic sulfuric acid rutile and anatase titanium dioxides are 14,200~16,300 yuan/ton and 11,800~13,000 yuan/ton. Domestic and imported chlorinated rutile titanium dioxide are distinguished by purpose. The mainstream prices are between 18,500 and 21,000 yuan per ton and 26,000 to 28,000 yuan per ton (the above are all tax-included cash outbound prices).

At the end of February, the domestic titanium dioxide price market remained strong. Yang Xun, an analyst in the Yantai titanium industry, believes that the raw material spot is tight and the price remains high. Affected by logistics and transportation, some spot supplies are still tight. The most important thing is the terminal market, which will be opened in March. From the perspective of the domestic market, demand will definitely recover explosively. At that time, higher requirements will be put on the "blood" of the supply chain and a large-scale supply The supply is about to begin. In addition, the market is not worry-free. The foreign epidemic situation is severe, and there are certain risks in my country's titanium dioxide exports. In the short term, the logistics difficulties have been partially eased, and the market spot remains tight. With the large-scale recovery of logistics in March, the supply chain is running higher. There are important positive factors on the raw material end, the spot supply end, and the downstream demand end. The prosperity of the titanium dioxide trading market needs to be restored. The actual transaction price of the holders may rise strongly, and the actual transaction price will be negotiated.