The domestic titanium dioxide market has established a fourth wave of price increases as Long Yao raises the market price, and manufacturers in the East China, Central China, Southwest, South China, and Northeast regions have implemented upward adjustments.
Chemours International (Chemours) announced on April 11, 2016 that from May 1, 2016, Chemours Ti-Pure titanium dioxide sold in all regions of the world will be increased by US$150/t. Huntsman announced on April 4 that it will raise the price of titanium dioxide (titanium dioxide) pigments in the world. The price of titanium dioxide (titanium dioxide) pigments in the world will increase by 180 US dollars/ton from April 1, 2016. Tronox announced on March 31, 2016 that, as of April 1, 2016, Teno Titanium Dioxide has been raised worldwide by US$175/t. Ishihara (ISK) announced on March 28, 2016 that since April 1, 2016, the price of titanium dioxide (titanium dioxide) sold in the Asia-Pacific region has been raised by US$150/tonne. Koster Company announced that prices of TiONA and Tikon titanium dioxide (TiO2) products have increased in all regions, effective from April 1, 2016 or as agreed in the contract.
In April, the domestic and international titanium dioxide market witnessed unanimous price hikes. The obvious difference from the titanium dioxide market in March 2013 was the “international price hikes in the country.†In 2013, the main reason was the sluggish demand in the domestic market, and the export was affected by haze, plus production. Excessive business inventories are still to be digested, domestic vicious competition is serious, and there has been a phenomenon of international price hikes at home.
This year, in 2015, commodity prices were depressed and the market price of titanium dioxide continued to hit new lows. The market swam in the cold current of “cost price†jumps. Long-term low-cost take-away companies suffered serious losses, and most of the companies’ profits went upside down. Second, at the end of the fourth quarter of 2015 and January and February 2016, domestic exports of titanium dioxide increased significantly. In January 2016, exports of 5,201.885 tons of titanium dioxide, an increase of 8%, a decrease of 6.43%. In February 2016, the company exported 44,690.504 tons, a year-on-year increase of 6.24% and a month-on-month decrease of 14.07%. The export of domestic enterprises was stable, effectively reducing the pressure on the company's inventory. At present, the inventory of mainstream enterprises in China maintains a normal level, and some of the enterprises’ inventory is low. It has become another favorable factor to promote the price increase of enterprises. Third, in the process of continuous implementation of the national supply-side reform, the promotion of industry mergers and acquisitions to promote the withdrawal of backward production capacity, titanium dioxide industry will face greater reshuffle, while the domestic real estate industry continues to stimulate good, the end demand or will slowly recover, titanium There is limited room for falling market prices for white powder.
It is particularly noteworthy that in the second half of last year, as the global titanium dioxide market was in oversupply, some international manufacturers shut down some factories and reduce production. Huntsman shut down the 100,000 tons sulfuric acid method in Calais, France. Titanium dioxide device, only retain the post-processing capacity. Teno intends to reduce the production of titanium dioxide and ore, suspending a production line at the Hamilton Titanium Dioxide Plant (a total of six production lines) and a production line at Tiwest Pigment Factory (a total of four production lines) at Kwinana, Western Australia. The reduction of the production line means that the company’s total TIO2 production line is down by 15%, which shows that the international giants are determined to match the market conditions by reducing the production rate and inventory.
The inventory matching market requires multiple efforts. China's titanium dioxide industry has implemented “three gossips, one drop and one supplement†during the 13th Five-Year Plan: de-capacity, destocking, de-leveraging, cost reduction, short-swapping, and disposal of “zombie enterprisesâ€. "The promotion of resolving excess capacity will effectively implement the market rules for inventory matching markets, and market prices will neither be "profiteering" nor "jumping." The unanimous rising price at home and abroad tends to be the inevitable trend for the healthy development of the titanium dioxide industry.
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