Continuing bad signals! How far can titanium dioxide go?

Titanium dioxide, which lasted nearly one and a half years, has created a myth in the chemical industry. From the beginning of 2016 to 9,800 yuan/ton, to the current 19,000 yuan/ton, the increase has reached 93.88%. The newly released April paint output decline, but let the industry people panic, the myth of titanium dioxide can continue, bad signal continues to increase, coupled with limited downstream acceptance, the market may have a narrow range of space exploration.

According to data from the National Bureau of Statistics, the national paint output in April was 1.7 million tons, a drop of around 5% from the previous month. In April, the pressure on national environmental protection inspections continued to increase. Chemical industry parks relocated, paint oil was transferred to water, and the pressure for survival of small and medium-sized paint manufacturers continued to increase. The decline in paint production in April, coupled with the gradual arrival of the industry in the off-season, has caused some titanium dioxide manufacturers to feel the pressure. At this time, titanium ore has just undergone a round of price reductions. 46% of titanium concentrates in the Panzhihua area dropped from a high of more than 2,000 yuan/ton to the current average price of 1,625 yuan/ton, and this negative signal was released. For downstream customers who want to purchase titanium dioxide, the decision-making is more difficult.

Weak downstream demand, raw material costs, titanium dioxide supply surface is how? According to monitoring, titanium dioxide manufacturers have gradually become polarized, one is the differentiation of rutile titanium dioxide and anatase titanium dioxide, and the other is the differentiation between major manufacturers and small factories.

On May 8th, Long Kuangli said: "Although the current price of titanium ore has dropped slightly, the downstream demand for titanium dioxide is still strong. In the short term, the price will remain strong, and there is little possibility of a correction. In addition, due to sufficient order volume, The actual transaction price of the company lags behind in the quotations, and the actual transaction price of Longbaili titanium dioxide is approximately RMB16,500, which is superior to the current price of titanium dioxide of approximately RMB19,000/ton and the price of imported titanium dioxide.” Ranked first in the country The actual transaction price of titanium dioxide faucet bosses is 165 million yuan/ton, which shows that there is a big difference between the market quotation of 19,000 yuan/ton and the price of anatase titanium dioxide of 16,000 yuan/ton or less. With the continuous improvement of product quality requirements, some of the downstream manufacturers, mainly anatase titanium dioxide powder materials, have switched to rutile titanium dioxide, resulting in an increasingly widening market demand for rutile titanium dioxide compared to anatase titanium dioxide. The sales pressure of anatase titanium dioxide has become increasingly severe.

"Even if the market re-adjusts the price adjustment letter, can it be adjusted?" "The market price should not be adjusted upwards? It can't be sold anymore." Some of the titanium dioxide factory owners said. In fact, this also reflects the current status of some titanium dioxide companies, as early as the first few price adjustments, some manufacturers did not increase prices. It is understood that the current major manufacturers of titanium dioxide and export-oriented manufacturers are still in the implementation of March-April orders, low inventory, while some of the slightly smaller manufacturers of white powder is gradually increasing. Titanium dioxide production companies have also gradually polarized.

On the one hand, the downstream continued to release bad signals, and some titanium dioxide manufacturers still perform pre-orders, inventory shortages, titanium dioxide market is expected to rise or fall dilemma. The foreign titanium dioxide manufacturers have issued a statement, the majority announced on July 1 to mention the price of titanium dioxide in Asia! Some companies still have the desire to pull up the market and the market has different opinions. It is expected that with the onset of the paint off-season, the market transaction climate may have a weakening trend, but due to the current overall inventory situation in the market, the market exploration space is limited.

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