On September 4, Guangxi Xilong Chemical Co., Ltd. issued a price adjustment letter, which decided to increase the price of Titanium Dioxide by 500 yuan (ton price, the same below) from the same day; On September 7, Lomo Billions Group Co., Ltd. took the lead in issuing price adjustment letters, followed by letters from 15 enterprises including Anhui anada Titanium Industry Co., Ltd., China Nuclear Huayuan titanium dioxide Co., Ltd., and Jinpu Titanium Industry Co., Ltd. to increase the domestic and international prices of titanium dioxide products by 500 yuan and 80-100 US dollars per ton respectively on the original basis. This is the fifth time this year and the third time in the second half of this year that the titanium dioxide industry has set off a price rise.
According to the industry insiders, the sharp rise in the price of titanium dioxide raw materials has caused the sales price of some titanium dioxide production enterprises to hang upside down with the cost, which is an important factor to promote the price rise of titanium dioxide market.
Tight supply is another reason for titanium dioxide enterprises to raise prices. At present, the mainstream production enterprises are still in a tight spot, and the products of specific brands of individual enterprises have been sold out; it is very common for agents and terminal customers to queue up for delivery, and some agents are in a tight spot distribution. The current stock situation of production enterprises is polarized: a small number of production enterprises have normal spot inventory positions, and there are no obstacles in production and delivery; most of the production enterprises are in urgent inventory and have high market weight.
We believes that the main reason for the tight supply of titanium dioxide spot market is that the export market has begun to pick up.
According to the statistics of the General Administration of customs, in July this year, the export volume of titanium dioxide in China was 97500 tons, with a month on month increase of 26.17%, and a year-on-year increase of 10.07%; the total export volume of titanium dioxide from January to July was 660600 tons, with a year-on-year increase of 15.84%.
Judging from the export data in July this year, the export of foreign trade has basically recovered, but some special countries still have certain restrictions due to epidemic situation and other reasons, but from the expansion of export target countries, the export loss of some countries has been basically compensated. The priority of export order delivery of production enterprises is still relatively high, and the domestic spot situation is tense or persistent.
However, although the traditional peak season in September has started, the terminal demand has not reached the ideal level. The downstream market is more rational for the fluctuation of titanium dioxide market, and the lack of long-term futures is also the mainstream operation of returning to reality.
In the end of the market, however, the market demand will not be aroused by the high demand of customers. In the short term, titanium dioxide spot market supply tension will continue, even if the price does not lead to the rise will also be strong dark rise. At present, all aspects of the conditions have been met, only waiting for Lomo price confirmation, it is expected that the "golden nine" peak season is not weak.
