Why did I say the Tio2 price will drop even though some announced price rises last month?

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Today I met the sale directly of the CHTI Tio2 factory which is the second largest Tio2 factory supplier in the south of China, following the largest BILLIONS factory, We talked about the Tio2 supplying both inside and outside China. The price now is just ￥15580/ton, which shocked me, although I predicted the price will fall down instead.

Currently, the supply is still too more than the requirement, although the supply in Europe has decreased. That's the reason we predicted Tio2 price will drop even though some factories in China announced price rising notice. According to the data we got from the Tio2 factory supplier, the TIo2 capacity in China increase 50% since 2019, that is 1.5 million tons, and consider the decrease in Tio2 in China caused by the weak requirement of real estate dropping by 50%, it means too much capacity remains. What's more with hot weather ends, supplying will be more. So no reason to rise even if some raised the Tio2 price.

Here is the article, We published one month ago!

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This week, many customers began to consult with me about the products of CNNC Titanium R216, Nanjing Titanium R950, Jinhai Titanium R6618, Dawn Titanium R2195, and Ningbo Xinfu Titanium R606, to see if they could find the sources of these types of titanium dioxide products. Because I have been engaged in the marketing work of Niutang brand curing agent for a long time, based on the need of my work, I have had the opportunity to make many friends from titanium dioxide factories, through which I have learned a lot about the internal situation of titanium dioxide industry.  

Firstly, after more than 20 years of rapid development from 1998 to 2020, the scale and quality of the titanium dioxide industry have been comprehensively improved. Since 2009, the production scale of titanium dioxide in China has ranked first in the world, and scale is the foundation of industrial development. Nowadays, the main products of titanium dioxide produced by the sulfuric acid method in China are gradually developing to the middle and high end. Compared with similar products in the world, the gap in production technology, production equipment, and product quality is already very small, and it is just around the corner to catch up with or even surpass the products produced by the sulfuric acid method in the world. 

The same conclusion can be drawn from the price difference between China's titanium dioxide import and export in 2020 and 2021.

 

The price of domestic titanium dioxide is gradually approaching that of internationally renowned titanium dioxide factories, such as Chemours, etc., which also means that the quality of domestic titanium dioxide is more and more recognized by end customers at home and abroad, and some titanium dioxide models even reach the product quality of foreign chlorination, such as R-219 coverage rate of cnnc Titanium Dioxide is comparable to that of Chemours chlorination process titanium dioxide, and the whiteness of Huiyun Titanium Dioxide R666 is the best. 

 

 

Regarding the trend of titanium dioxide after the Spring Festival, which everyone is concerned about, I specially contacted the sales managers from several titanium dioxide factories and discussed the trend of titanium dioxide after the Spring Festival with them. Most people are bullish on the rutile market in the first half of 2022. 

 

First, in the short term, near the end of the year, the intention of stocking in the downstream market is strengthened, and the northern region is affected by the Winter Olympics event in the later period, and some manufacturers are overhauled in advance or during the Spring Festival, which means that the comprehensive supply may be limited, the output cannot be released, the inventory cannot be built up, the supply and demand sides may maintain a "tight balance", and the market supply and demand will shrink again, and the short term is still bullish. In fact, since the manufacturers issued the price increase letter in early January 2022, the actual price of this week's transactions has increased by $50-$80/ ton. 

Secondly, in the medium and long term, the market demand for titanium dioxide continues to be strong. Although there are many new production capacities in the market, it is estimated that the new production capacity will be 500,000-700,000 tons in 2022, but the titanium ore is in a tight situation, and the price of titanium ore keeps rising. This year, the price of titanium ore has increased by 12%-20%, the price of oil and other energy sources has increased, and the production cost of titanium dioxide factories will be in a high position. Based on this, it is expected that the price of titanium dioxide may decrease in the second half of 2022

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