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A price surge of titanium dioxide market Comefrom:CINIC    AddDate:2019-02-20    Hit:2547

On February 12, Lomon Billions Group Co., Ltd., the largest production capacity in China, announced that the sales price of titanium dioxide will be raised from now on. The price for domestic customers will be increased by 500 yuan/ton on the basis of the original price, while the price for international customers will be increased by 100 dollars/ton, which meant a price surge of titanium dioxide started.Then, within a week, Detian Chemical, CNNC HUAYUAN Titanium Dioxide,Ji 'nan Yuxing, Haifeng Xinhua, Chuangda Yutu, Dawn Group, Gpro Titanium Industry has increased the price of titanium dioxide in succession.

"One of the reasons for this increase is the stop offering of domestic leading enterprises. Before the CNY, the equipment of Lomon Billions deyang base was stopped for maintenance for about 20 days. After the resumption of production on January 18, they stopped offering on January 24. Besides, titanium dioxide market will be involved in the first round of procurement tide after the festival. At the same time, Lomon Billions led the price hike, a linked-raised price hike of other enterprises has already become a fact." said by Chen Shiwei, an analyst of Oilchem.

CBC titanium zirconium analyst Hao Zhimin also said that the price-leading role of Lomon Billions is rather obvious. Generally, an increased price will stimulate the domestic market, prices of most manufacturers will be increased at the same range, same situation as last year. From the current point of view, many enterprises have begun to follow up, price of titanium dioxide is expected to increase gradually.

YCIMALL titanium industry analyst Yang Xun believes that the rise of the price for international titanium dioxide also promotes the rise of domestic titanium dioxide market. On January 31, titanium dioxide international giant Venator announced that it had raised the price of titanium dioxide sold in the United States and Canada by 7 cents per pound (about 154 dollars per ton). The new price will be implemented on February 1.

Analysis of domestic and foreign titanium dioxide price rise deep-seated reasons, people believes that the contradiction between supply and demand is prominent.

According to Yang xun, the current level of titanium dioxide overall social inventory is low, the actual comprehensive inventory of leader companies are less than 10,000 tons than normal average.

"Since the fourth quarter of 2018, due to winter production restriction and other factors, the operating rate of domestic titanium dioxide enterprises has declined, and the destocking trend of the industry is obvious. Before the Spring Festival, Lomon Billions sealed orders in advance, and many enterprises stopped production in advance for the holiday, which is leading to many downstream enterprises and traders did not prepare enough inventory. After the Spring Festival, titanium dioxide manufacturers generally in low inventory state, and most of them are still on holiday, so that the supply of titanium dioxide is relatively low. In order to meet the traditional consumption season from march to may, downstream enterprises have begun to focus on purchasing and organizing production. The above factors have led to the demand is much exceeds supply for titanium dioxide, the price rise is logical. Hao Zhimin analysis.

In addition to supply-demand factor, the stable raw material market of titanium concentrate is also a support for the increase price of titanium dioxide.

According to SunSirs, on February 13, the price of TJK46 of the main titanium concentrate in panzhihua, sichuan province, was 1,250 yuan/ton, up 17 yuan, about 1.4% from the starting point of this uptrend.

In addition, the reduction of transport vehicles has led to the declined transportation capability, titanium dioxide freight cost is higher than 30~50 yuan per ton, this is also a factor of titanium dioxide price increase.