Titanium Dioxide: More than 23 manufacturers announced that the price increase really rose?

After the domestic Titanium Dioxide Dragon Enterprise issued a price increase letter, more than 23 manufacturers have followed suit, and the price adjustment range is 500-800 yuan/ton. This is a rare collective price increase this year. The price of titanium dioxide is rising, and many companies have indicated that orders are sufficient and inventory is tight. However, since 2018, some domestic enterprises have raised the price of titanium dioxide, but the transaction price has not risen and fallen, and the performance of "Wolf is coming" has been repeated many times. Then will the price increase letter really rise?

The overall price of titanium dioxide since the first half of 2018 has shown a downward trend. Taking the southwestern region as an example, the rutile titanium dioxide decreased by 2.45% from the beginning of the year of 16,750 yuan / ton to the current 16,350 yuan / ton. Although the price in the middle part of the region has risen slightly, but due to the lack of downstream demand, the price quickly fell. Will this collective price hike be a small operation with thunder and heavy rain?

The export market continues to improve. It can be said that the biggest positive factor after the year is the export market of titanium dioxide. According to customs data, China's titanium dioxide exports continued to grow steadily in April 2018. The total domestic export volume of titanium dioxide reached 84,000 tons in the month, a year-on-year increase of 30.4%. From January to April, the cumulative export of titanium dioxide was 326,900 tons, an increase of 33.37% over the same period last year.

Since 2018, due to the good export situation, some titanium dioxide enterprises with better domestic export situation have shifted their attention to the export market and increased the export share of titanium dioxide products. These enterprises are all domestic large-scale manufacturers. The five companies are: Long Yao, Zhong Nian, Yu Xing, Dao En and Dong Jia. With the development of this export situation, if some enterprises are self-sufficient in order and the inventory is tight, if other small and medium-sized manufacturers are up, is it because domestic demand is good? The answer is no.

Domestic demand for titanium dioxide is not optimistic. Affected by environmental protection inspectors and other environmental protection policies, many manufacturers of titanium dioxide downstream are facing the situation of production stoppage and production restriction, which makes the demand for titanium dioxide shrink seriously. As the main downstream of titanium dioxide products, coating production performance is the lowest. Many paint factories have reduced operating rates due to environmental impact. From January to March, China's paint production totaled 3.965 million tons, a year-on-year increase of -3.8%, showing a rare negative growth in recent years. Similarly, as the main downstream plastics, rubber, ink and other industries of titanium dioxide, the start of the year is not optimistic. Then someone said that the downstream production, titanium dioxide also reduced production? Is supply reduction not a positive impact?

Supply reduction is indeed a positive impact, but environmentally friendly high pressure has a greater impact on the downstream. Under the environmental protection and high pressure, many small-capacity production capacity of titanium dioxide has been reduced or even stopped. Shandong Daoen, as a top-ranking manufacturer with a large production capacity, also stopped production for a period of time in June under the influence of environmental protection, but did not have much impact on the overall market supply in the case of poor demand. Therefore, although titanium dioxide has also reduced production, and currently only started in about 60%, but for the downstream affected by environmental protection, supply and demand are still unbalanced, and the supply is still abundant. Therefore, many titanium dioxide enterprises have announced a price increase on the surface, but in reality they have fallen.

At present, it is generally in the off-season, and the dragons are moving up, and other producers are following suit. However, in the case that the downstream receiving intention is not strong, the actual market transaction is not ideal, or it can only play a role in stopping the price stability. In addition, some time ago, after the operation of the two major manufacturers of Long Hao and China Nuclear, the price increase letter came out soon, which forced people to think about whether they are engaged in the strategy of hunger marketing. The future direction of market price development depends on the sustainability of the price increase of the long-term enterprises. However, there is no demand increase, performance is slightly weak, and the market still has long and short factors.

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