Titanos News

Market analysis

Time: 2020-11-09 Source from: Yantai

      October has ended, and November is coming with a surge in the price of titanium products. There are more than 20 manufacturers have increase price closely,range’s about 800-1200 CHY per ton. This increasing is unprecedented and aggressive. On one hand, it’s because export orders from producers remained strong and the domestic spot market remained tight. On the other hand, due to the strong market trend of raw titanium concentrate, the market mainstream single price has reached about 1,950 CHY/ton (excluding tax), and the price of a few orders has broken through 2,000 CHY/ton (excluding tax).

     To this phenomenon,Titanium industry analyst of Titan Yang Xun analysis,This wave of Titanium dioxide price rise is mainly for the following two reasons:

      Firstly, the volume of foreign trade food is huge.According to the statistics provided by the Customs General Administration, cumulative export volume of titanium dioxide from 2020 January to September is 889540.01 tons with a year-on-year growth of 19.98%. In the face of the epidemic situation in 2020, China's titanium dioxide exports are expected to reach an all-time high of nearly 1.2 million tons, accounting for 37.3% of its total output of 3.18 million tons in 2019. Manufacturers are still mainly engaged in foreign trade export delivery, and the domestic release volume in the fourth quarter of 2020 is very small. Some manufacturers have completed the annual target volume even if they do not receive domestic orders in the coming November and December. In addition,Rumor has it that titanium dioxide export will have policy subsidies, each ton of titanium dioxide export will have a subsidy of 100-400 CHY, e-Titanos will continue to pay attention to this matter.

     Secondly, the price of titanium concentrate, an important raw material, has been high recently. 46% titanium concentrate of gravity separation. From 1150 CHY/ton in mid-June to 1950 CHY/ton at the end of October (the above prices do not include tax), an increase of 69.57%. Such a large increase, from the perspective of titanium concentrate alone, makes the cost of titanium dioxide increase by 2,000 CHY/ton, and it has jumped by 400 CHY/ton recently, which directly leads to the increase of 1,000 CHY/ton of titanium dioxide cost. In this way, this jump in price is helpless, it’s embarrassing for enterprises who have domestic and foreign trade orders before the price increasing but not yet delivered.

      Nearly 2 months of titanium dioxide price market has two characteristics, a huge increase + adhere to go up firmly. As the cost increase includes spot tension that has lasted for several months, the producers have a clearer attitude towards the market and are more determined in price enforcement. But after nearly two rounds of determined price increases, does not relieve the strain on the spot, the shortage of common goods, instead of forcing a lot of alternative products and some manufacturers take the opportunity to export products, each application domain product supply concentration decreased. Sellers have only a small amount of stock in hand, so the price increases add up to more and increasing the arbitrariness of firm order’s price, more resistant to late payment orders, the supply side is uncompromising.

      Some producers and distributors are now selling "futures" instead of the original goods because of serious shortages in the domestic market. Small orders can be coordinated and arranged, on the contrary, large orders are afraid to accept, mainly because the seller is worried that the delivery date may be too long in the future. Once the market rises again, almost all the previous orders will be lost. So a lot of manufactures rise in price ahead of time but the range of price increases is unpredictable, more difficult is how customers accept such advance.

      Manufactures control the assembly quantity and they are uncompromising. Although the agent's supply of goods can be basically guaranteed, but there are also reduced quantity of their orders. This aggravates the spot tension in the terminal market. Customers should identify those who have a large amount of spot goods and the price is lower than the ex-factory price of 200-300 CHY/ton. The more spot tension there is, the more cautious they need to trade.

      Nowadays, domestic majority RUTILE TYPE and ANATASE TYPE titanium dioxide which are extracted by sulphate process mainstream quotes in 14800-16500 CHY/ton and 12500-14000 CHY/ton. Domestic and imported rutile type titanium dioxide which are extracted by chloride process according to the use of the mainstream price in 18500-20500 CHY/ton and 25800-28000 CHY/ton (above are tax cash price).

Market outlook forecast

     This week domestic titanium dioxide price market is very firm,Titanium industry analyst of Titan Yang Xun analysis: spot shortage has been going on for months, raw titanium concentrate price surge, which makes this wave of the end of the market more and more high, price of  RUTILE TYPE titanium dioxide which are extracted by  has reached a new high of 16,000 CHY/ton. Spot market is still more nervous, but part of the high price has a confrontational mood, the mutual replacement between products gradually increased. In the short term, some domestic sellers and foreign trade orders have been received in December. Judging from this situation, it may be a high probability event that the market continues to rise. The actual market transaction price depends on the spot situation, and each order needs to be discussed separately.