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Domestic titanium dioxide’ hot market quotations is over

2012.05.21   09:25

The titanium dioxide industry had been in full swing last year at once, the anatase even had price doubled. In the trend of decreasing the global economic growth rate, though the foreign titanium dioxide giants’ price stll kept rising, the domestic’s actual demand was limited, the titanium dioxide’s bull market gradually callback for narly 4 months.Statistics indicate that domestic factory price of the rutile titanium dioxide at present have already fell to 16800~ 20000 yuan and compared with the former high price, now the price has decreased 21000 yuan per ton. averagely. The range of the anatase titanium dioxide’s price drop became more obviously, in the end of March price is about 17,000 to 18,200 yuan in the end of March, which now has dropped to 16,000 to 16,500 yuan. The titanium dioxide recent changes in the market caused widespread concern in the industry.

International rising in prices hardly deliver to China

American Dupont company has announced, to raise all titanium dioxide prices but papermaking and paperboard market from April 1st, in addition to paper and board application.The United States market raised $441 and Asia Pacific market raised $200.

Insiders believe that the mainly reason why the international titanium dioxide giants increase their prices smoothly is that the international titanium dioxide industry is highly concentrated after a long-term competition, each vendor achieved oligopolies in nich areas and some certain varieties.what’s more the international market’s part of capacity shut down from 2008 to 2011, the market emerged insufficient supply apparently.

Since this year, the international titanium dioxide market have exceeded the supply. Foreign titanium dioxide purchasers turned to China to procure a lot which promoted the inflation of titanium dioxide price, but the most fundamental reason is the price rising of the raw materials of titanium concentrate. In addition, the host countries of titanium resource restrict the exports, which formed cost push for the increasing price.

It worthy noticing that although the foreign leading enterprises Huntsman, Connors and DuPont have announced rising price one after another since March, the domestic market was short of price rising factors . Especially in the off-season, market demand is ratherly lonely, market activity is not it was.

Upstream price depreciated and downstream in the doldrums

The CIC consulttant and also the chemical industry researcher Chang Yizhi points out, although the international titanium dioxide giant DuPont raised the price of titanium dioxide in April to boost the stock quotations of the domestic titanium dioxide listed companies to a certain extent, however the recent domestic titanium dioxide market has showed the decline trend recently.The reason is mainly because of the upstream raw material of titanium ore prices fell sharply, at the same time the downstream domestic building materials, coating and other industries’ market quotation are not good, the titanium dioxide demand is limited.l

Titanium concentrate price can be regarded as the "barometer" of the titanium dioxide market. Titanium concentrate is the main raw material for the titanium dioxide. In the domestic imports of titanium concentrate, 30% of those come from Vietnam. At the end of last year, Vietnam announced termination of titanium concentrate exports,which boosting the titanium dioxide prices rising to a large extent.In addition to titanium concentrate  prices rising, the diesel and labor costs rise at the same time, titanium dioxide increasing pricesis expected.

However, along with the price of the raw material- titanium concentrate is not hard up, the domestic titanium dioxide prices began to decline in the early in April. According to the relevant statistics, titanium concentrate prices climbed to a high level of 2500 yuan at once in the beginning of this year, but presently part of domestic titanium oconcentrate price has fallen to 1700~ 1800 yuan, even also down to 1400 yuan price in some areas. Statisitics show that the entire operating rate of domestic titanium dioxide industry has descended to 60%

Market outlook will gradually callback

In recent years, no matter China's titanium dioxide production scale or the actual yield all grow rapidly, which have already became one of the most important forces of the  world titanium dioxide industry. As far as the demand concerned, coatings occupied 60% downstream dosage of the titanium dioxide, but the increasing rate of the coating industry is only 10% every year in our country’s “New Plan”. Caculate with the speed 15% of annual growth rate, demand by 2015 will only reach 2900000 tons. Therefore, titanium dioxide’s excess capacity will cause the lower capacity utilization rate.

Inflenced by the shock of import titanium concentrate and fatigued and weak domestic downstream demand, the raw titanium concentrate material’s price has gradually callbacked, the market trading is in calm. To estmate the market outlook, inside titanium dioxide market price will rational callback in short-term mainly as the result of the real estate regulatory policy and titanium dioxide seasonal demand

By Allen

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