Titanium dioxide achieved high profit returns in the first half of 2017, but its trend gradually declined in the second half of the year. Recently, the trend of the titanium dioxide market has remained sluggish. Under the pressure of environmental protection measures, most domestic titanium dioxide enterprises are operating at low loads, and the bearish mentality of the industry is deadlocked. The trading focus is gradually shifting downwards. As of the end of August, the titanium dioxide market began to stop falling, and in early September, due to the impact of the rise in titanium dioxide raw materials, some large enterprises began to increase their prices. On September 6th, the Jiangsu market experienced a tentative increase.
Latest developments in titanium dioxide equipment
On September 6th, the Yuxing titanium dioxide plant in Jinan was shut down, with export inventory being the main focus. The manufacturer's preliminary plan is to start around the 10th.
The manufacturer of Shandong Daoen Titanium Industry Co., Ltd. is continuing to shut down, with limited inventory. The preliminary plan is to start around the 10th.
Overview of the upstream raw material market for titanium dioxide
Titanium concentrate data
Recently, due to the impact of environmental inspection policies, most domestic titanium concentrate and sulfuric acid manufacturers have chosen to shut down or reduce production, resulting in limited spot supply in the market and gradually increasing prices. The reference price of titanium concentrate market remained stable around 1487.14 yuan from the end of August to the beginning of September. Since July 6, 2017, it has gradually increased by 16.183% in 63 days. On September 6th, there was a tentative increase in the Sichuan titanium concentrate market.
The latest quotation for sulfuric acid, another raw material with a concentration of 98%, is around 250 yuan, an increase of 2.00 yuan from last week, with a monthly increase or decrease of 10.43 yuan and an average monthly price of 58.40% year-on-year. The factory quotation for sulfuric acid in Shandong region (93%) is around 250-280 yuan/ton; (98%) The factory quotation for sulfuric acid is around 270-290 yuan/ton, and (105%) the factory quotation for sulfuric acid is around 410 yuan/ton.
The rise in raw material prices is one of the important factors supporting the rise of domestic titanium dioxide.
Import and export data of titanium dioxide
In July 2017, China's titanium dioxide exports reached 68835.148 tons, a year-on-year increase of 8.28% and a month on month decrease of 12.37%; The top three export countries are India, Türkiye and South Korea; The top three export regions are Sichuan, Henan, and Shandong. From January to July 2017, a total of 465217.425 tons of titanium dioxide were exported, a year-on-year increase of 12.9%.
In summary, the titanium dioxide market has recently recovered, and the pressure from domestic environmental policies is relatively high. Most titanium dioxide companies find it difficult to recover their operating rates to normal levels in the short term, and the overall supply side has limited volume; From a downstream perspective, small and medium-sized enterprises have insufficient production, while large and medium-sized enterprises have relatively stable production and are cautious about raw material procurement. Currently, mainstream enterprises have inventories ranging from 2000 to 7000 tons. The export volume is increasing compared to the same period. However, most upstream raw material enterprises such as titanium concentrate and sulfuric acid have raised prices to support the titanium dioxide market. Some large domestic enterprises have started to raise their prices. Huicong Chemical Network predicts that the domestic titanium dioxide market will remain stable in the short term, with upward exploration being the main focus.