Titanium dioxide: price rises are difficult to stop

In the first half of this year, the national titanium dioxide industry continued its boom last year. The rutile titanium dioxide exceeded 20,000 yuan (t price, the same below) in April. Industry experts expect that prices will increase in the second half of this year.

Senior expert of national titanium dioxide industry expert group, Bi Sheng, director of National Center for Chemical Productivity Promotion Titanium Dioxide Center, titanium white expert, Li Yidong, chief engineer of Jiangxi Tianguang Chemical Co., Ltd., Peng Jing, general manager of Nanjing Titanium White Chemical Co., Ltd., Shandong, China Sun Peng, general manager of Jia Group Co., Ltd. and other industry insiders believe that in the second half of the domestic titanium dioxide market, the overall situation is relatively stable, the price will operate at a high level, there will be no ups and downs. Because manufacturers and distributors have difficulties in shipping off-season products, most downstream buyers continue to experience “difficulty” in the price of trapped titanium dioxide. They have waited and watched, resulting in lower demand, and the original market will lose its driving force; due to factors such as Vietnam’s titanium ore export restrictions, The cost of domestic titanium concentrates and titanium dioxide will increase. In addition, after the northern provinces and cities entered the winter, the sale of titanium dioxide in some regions entered the off-season, and the situation of “having no market” may appear again.

Rising prices of raw materials to improve the market Price of raw materials is the main reason for the rise in the price of titanium dioxide in the first half of the year. Since the beginning of this year, the prices of titanium concentrate, titanium dioxide and titanium sponge have risen. Titanium concentrate prices began to rebound strongly from 2010 and the annual increase was about 65%. As of June 31, the titanium concentrate market price has reached 2,800 yuan, which has nearly doubled from the previous year's 1,000 yuan.

With the rising prices of titanium concentrates and related products, Vietnam announced at the end of June that it will end its exports of titanium concentrates and their products by the end of 2011. Since China's titanium mines imported from Vietnam account for 1/3 of the domestic titanium ore consumption, after its stop exporting to China, the domestic titanium ore prices will further increase, which will affect the price of titanium dioxide.

Strong exports and high export prices are one of the driving forces for the strengthening of the domestic market in the second half of the year. Although the second half of the year is the traditional off-season of the paint industry, some paint companies may switch to other alternatives such as lithopone to reduce their production costs due to the inability to afford high-priced titanium dioxide, thereby reducing the use of titanium dioxide. However, foreign demand is still very strong. At present, most of the major titanium dioxide manufacturers in the country are focusing on foreign markets and are trying to stabilize their customer base.

Peng Ming, general manager of Nanjing Titanium White Chemical Co., Ltd., said that in the first half of the company more than half of rutile titanium dioxide exports, export prices relative to the domestic market firm. In the second half of the year, the domestic market may not be as popular as it was in the first half of the year, but it will remain relatively stable. The foreign market is estimated to cool slightly after Christmas, especially after DuPont raises the price. The international market is basically difficult to buy DuPont products at low prices. Some products developed by domestic companies can fill the gaps and quickly occupy the market. market.

Latent release of potential demand From the current point of view, the overall price of domestic titanium dioxide remains stable, is expected to be in the second half of the price of titanium concentrate and downstream titanium dioxide products, such as the incubation period, the potential consumption space will gradually be opened up, continue to maintain strong momentum. With the development of China's economy, consumption upgrade will inevitably drive the demand for titanium dioxide. At present, China only consumes 300 million people of titanium dioxide. Remote areas still use lime powder instead of the current popular latex paint.

At the same time, a study by the American SRI Consulting Company showed that the average annual growth rate of titanium dioxide in the world will reach 4.1%, and the global demand in 2013 will reach 6.3 million tons. The titanium dioxide market in China will grow at an average annual rate of 8.5%, and the Asia Pacific region will become the largest market for titanium dioxide between 2010 and 2015. It can be seen that the demand for titanium dioxide will continue to grow.

In addition to China, there are more than 20 major titanium dioxide producers in the world, of which the top seven producers account for 68% of the world's total production capacity. The main production areas are mainly in traditional titanium dioxide consumption in North America and Western Europe. market. Among them, DuPont accounted for 19% of global production capacity, Coste accounted for 12%, Huntsman accounted for 10%, Connors accounted for 10%. These companies largely dominate the supply, price, and development of titanium dioxide worldwide.

In July, a number of titanium dioxide plants in Europe and America increased their ex-factory prices. Following the production giants DuPont, Coste, and Turno raising the ex-factory price by US$500, Kronos will also raise prices twice, totaling approximately US$1,000.

Affected by this, the only chlorinated titanium dioxide production enterprise in the country, Jinzhou Pengda Titanium Dioxide Manufacturing Co., Ltd., will increase the ex-factory price of all specifications of PR-501 and other titanium dioxide by RMB 1,000 from June 22, and the base coating grade PR- 521 rutile titanium dioxide tax price from 24,500 yuan to 25,500 yuan. According to analysts' analysis, under the two-way pressure and stimulation of rising raw material costs and increased competition in the industry, price increases are also a general trend.