2016 so far, the domestic titanium dioxide industry experienced more than ten rounds of price increases, the relevant enterprises profitable. However, the Securities Times reporter learned that nearly a month, titanium dioxide upstream titanium concentrate prices have been high down, the market supply and demand contradictions are gradually emerging, for nearly a year and a half of the titanium dioxide bull market or difficult to sustain.
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Titanium concentrate prices fall titanium dioxide supply and demand contradiction highlights
Environmental protection limited production, coupled with the trend of the downstream titanium dioxide industry soaring, so that titanium concentrate was once scarce goods, the price from January 2016 450 yuan / ton, straight pull up to 2017 in mid-April nearly 2,000 yuan / ton Of the high, or nearly 350%.
“However, from mid to late April, this continued price increases began to worsen the trend.” Business community titanium dioxide industry analysis Yang Xun said, now the market price of titanium concentrate has fallen to about 1700 yuan / ton, part Small mines also can not sell the price. In just three weeks, Titanium concentrate has fallen by 15%.
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Titanium concentrate this round of price surge this is caused by the linkage of titanium dioxide, and now the price decline, but also due to lack of downstream demand triggered.
“Before and after the Spring Festival this year, titanium concentrate traders also claimed that tight supply, hoard goods waiting for high prices, but now there are small traders began to gradually puff.” Yang Xun said, from the end of March 2017, Mine downstream demand gradually fades. Whether the downstream titanium dioxide market, or the next layer of the paint market, demand showed a weak state.
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It is reported that the main downstream production of titanium dioxide paint, decoration paper and other materials, and the real estate market is closely related. This year the domestic real estate regulation and control policies frequently overweight, the market demand for titanium dioxide also showed a downward trend. In addition, due to the price of titanium dioxide has risen more than a year, the downstream enterprises stocking significantly, large terminal stocking for 3 months, small terminal stocking more available half a year, the second quarter of 2017 demand has been in advance overdraft.
“The past two years due to the price of titanium dioxide rose, the paint industry production and management difficulties.Now environmental protection supervision is not reduced, companies need to bear the cost of increasing environmental protection equipment, so the overall production enthusiasm is not high.
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Henan a titanium dioxide small business executives told reporters that the price of titanium dioxide at the same time, titanium concentrate prices also ferocious, so the same industry companies to cope with rising costs, but also more than a few months of hoard goods. At the same time, due to the shortage of pre-domestic titanium concentrate, many companies also turned to the import of foreign mines. Today, foreign products are sold to domestic, but the market demand has been reduced, so the supply is difficult to digest.
“Traders also have a lot of titanium concentrates store goods, to see the market signs wrong, from the price of 1900 yuan / ton when there are a lot of lower than the market price of shipping, and slowly put the price down.” He Say.
Yang Xun that the titanium dioxide industry is also affected by environmental protection, production capacity is limited, not so much mine. And such as dragon python Bai Li leading enterprises, but also their own mines, it is expected that the future titanium concentrate market will continue to be in
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a weak demand, the price will decline in shocks.
Titanium dioxide prices peaked in the future or difficult to continue
But also because of the high bargaining power of large enterprises, the current titanium dioxide industry in the case of slow demand, the price remains strong.
“On the current market situation, the domestic large and medium-sized production enterprises to get orders sufficient, but also to limit the volume of traders or terminals, and exports are relatively good, there is no pressure on the stock, all the reasons for no price.
Yang Xun said that despite the beginning of the end of March, the demand for titanium dioxide gradually deserted, the majority of the market participants gave the industry a large manufacturer dragged his hind legs, but the current capacity is still large export volume, orders to be completed, the stock is still tension. So the production capacity is still a continuation of the price of the “main theme”, and the reality of the market situation formed a “big reversal.” In the short term, the price of titanium dioxide or will continue to high.
But he also said that although the highest price of titanium dioxide is 23,000 yuan / ton in 2011, but when the real estate market to the good, strong demand, and the current market situation can not be in the same breath. At present, the world’s largest producer of titanium dioxide DuPont US prices only about 20400 yuan / ton, the domestic sold to 19,000 yuan / ton is actually a Kaner. It is reported that the recent large enterprises have begun to return through the rebate and other means of price movements. If the manufacturers officially open the price shipping mode, the market or there will be retaliatory decline.
The current price of titanium dioxide has not yet appeared callback signal, but the current price is indeed high.
“In fact, many large enterprises in the market to implement the orders are also signed a few months ago, although the latest offer in 19,000 yuan / ton, but the actual implementation price is only about 17,000 yuan / ton up and down.” In recent years, titanium dioxide Prices rose, exacerbated the downstream paint industry reshuffle, many companies are facing losses, shut down, production capacity has been reduced.
In the China Titanium Dioxide Industry Association Secretary-General Deng Jie view, titanium dioxide price reduction is inevitable.
He believes that the price of titanium concentrate highlights the titanium dioxide market changes. Long-term price increases, leading to titanium dioxide manufacturing side of the inventory transferred to the downstream, paint business stocks at the same time, sales are not optimistic. At present, poor application of titanium dioxide downstream, wait and see mood obvious.
“Titanium dioxide high price may also continue for a month or two, and then go down is probably how to rise on how to go back.” Deng Jie said that the current titanium dioxide business inventory is not large, but also began to sell The. The higher the industry concentration, the more can not afford inventory. Titanium dioxide prices still need to drive lower downstream, but the current fundamentals of China’s economic downturn has not changed, coupled with the continued regulation and control this year, the real estate market demand, so titanium dioxide gains difficult to sustain.
“Titanium dioxide price of a reasonable level of about 15,000 yuan / ton up and down this year, titanium dioxide is difficult to reach 20,000 yuan / ton high, the end of the price will return to 15,000 yuan / ton this line will be profitable, but not Will have such a big profit for nearly a year, “he said.
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