Sichuan Longxi, the largest titanium dioxide company in the country, announced that it will adjust its titanium dioxide products by RMB 600/ton from April 10, which is approximately 5%. This is also the first time that this titanium dioxide company has raised its quotation. At this point, the domestic market price of titanium dioxide has exceeded 12,000 yuan / ton mark across the board.
“This prevailing price is mostly domestic small and medium-sized titanium dioxide enterprises. The leading company has raised the price and announced the formalization of the market for titanium dioxide in the short term,†said Yang Xun, an analyst at Titanium Dioxide Enterprise.
According to reports, due to the industry's low inventory and the advent of the peak season, many titanium dioxide companies raised their ex-factory prices since March. Among them, Shandong Dongjia and Shandong Daun took the lead in the price increase of 200-300 yuan/ton. Since then, Lililian, Annada, China Nuclear Titanium Dioxide, Shandong Daun, Haifengxin, Jinan Yuxing and Shandong Jinhai have successively increased their prices. 300-500 yuan / ton, basically formed a "forced palace" trend for leading enterprises.
In addition, some international large titanium dioxide manufacturers have also raised their bids. As announced by DuPont last month, the price of titanium dioxide will be raised by about 5% from April 15. Huntsman has increased the price of titanium dioxide by 150 euros per ton since April 1.
In Yang Xun's view, this round of titanium dioxide prices first stemmed from downstream construction. After the Spring Festival holiday has passed, most areas of the country have gradually entered the state of resumption of work. The downstream demand has improved slightly compared to the holiday. At the same time, foreign trade exports have also improved. According to statistics provided by the General Administration of Customs, in January 2015, China exported 480,157,128 tons of titanium dioxide, which was a year-on-year increase of 9.52%, an increase of 10.07% compared with December 2014, of which Sichuan Longyuan exported nearly 12,000 tons.
Not only that, titanium dioxide industry specifications, industrial pollution prevention and control technology policies will be introduced within the year, the industry accelerated integration, which makes the industry's continued good expectations for the profitability of titanium dioxide continues to increase.
“On the other hand, due to the plunge of the euro and the real against the U.S. dollar, many exporters have suffered setbacks in exports to Europe and South America. At this time, price increases are also a profit compensation for them.†Yang Xun said.
He believes that the titanium dioxide market or usher in a stronger boost in confidence, the market rose or between 300-500 yuan / ton, less than 12,000 yuan / ton of rutile titanium dioxide will be less and less.
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