AS the TGIC curing agent industry, with China's increasingly strict environmental protection policy, many enterprises that fail to pass environmental protection rules are shut down, therefore the supply of titanium dioxide is reduced. At the same time, due to the recovery of domestic production in China and the influx of a large number of orders from abroad, the demand for titanium dioxide has increased sharply, a Great gap between need and supply. Although many enterprises have plans to expand production in 2021, considering that factory construction and capacity release are a long process, it is expected that the tight supply of titanium dioxide will not be greatly improved next year, and the price of titanium dioxide will remain at a high level.
After June 2020, the price of titanium dioxide is in the trend of rising both in volume and price. The main reason is that after June, domestic production recovered, all kinds of enterprises downstream of titanium dioxide resumed work in an all-round way, showing retaliatory rebound, and the downstream manufacturers of titanium dioxide wanted to make up the orders owed from January to June as much as possible.
AS the powder coating industry, the main reasons for the sharp increase in the demand for titanium dioxide are as following.
1. After the economic recovery after the epidemic, the domestic demand increased greatly, but the short-term output of chemical products such as titanium dioxide could not increase significantly, resulting in a short-term supply shortage.
2. Affected by the epidemic situation, the output of foreign titanium dioxide manufacturers is limited, the operating rate is seriously insufficient, and a large number of demands are transferred to China. It can be seen that the export volume of titanium dioxide has an average growth rate of more than 20% this year, while the inventory of major titanium dioxide manufacturers is seriously insufficient at present.
3. The influx of foreign trade orders from overseas daily necessities such as small household appliances has greatly boosted the upstream demand for titanium dioxide.
4. From the raw material side, the price of titanium concentrate upstream of titanium dioxide has risen rapidly. At present, the price of titanium ore is about 1980-2000 yuan/ton (in the past, the price of titanium ore was 1130-1210 yuan/ton). One ton of titanium dioxide needs about 3 tons of titanium ore, so the cost price of titanium dioxide rises by about 2,500 yuan/ton, which further promotes the price increase of titanium dioxide.
Generally, in late October, the order quantity of titanium dioxide will decrease, and the price will drop from November. However, this year is quite special. In early November, the price of titanium dioxide rose a lot and rise again in December. In January next year, although there is not much market demand for titanium dioxide, titanium dioxide will not fall too much because major manufacturers have almost no inventory and are in the stage of replenishing inventory. After the opening of February, if the price of titanium ore does not fall significantly, a new price increase will be ushered in after the opening of the year.
At present, the downstream demand for titanium dioxide is strong, which drives the demand for titanium concentrate to keep improving. Titanium concentrate is in short supply, and titanium concentrate is in the price increase channel. The profits of titanium dioxide enterprises will be further compressed, and enterprises are in a very passive situation. Although many enterprises will invest in titanium ore next year, on the whole, due to the problem of the titanium ore expansion cycle and the release of new production capacity, it is expected that the overall price of titanium concentrate will rise in 2021. Titanium dioxide also remained at a high level.
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