TiO2 market analysis 20191131

First, Market Analysis

It was almost completed in November. It was identified as a weak titanium dioxide market after the Shanghai Coatings Exhibition. The end market has severely reduced prices, and the price market has become increasingly clear. Some manufacturers have adjusted their prices after the meeting. Panzhihua Haifengxin Chemical announced a rise of 200 yuan / ton against the trend, which aroused the attention of many people. The main reason for the increase is the high cost of raw materials and the shortage of spot supply in the market. The force is not strong, and the initial intention is obvious.

At present, the spot prices of manufacturers in Shandong, Anhui, Panzhihua and other regions continue to be tight. These manufacturers have maintained stable prices since the first drop in early November. In fact, the price adjustment is also very reluctant. On the one hand, they must adapt to market trends and maintain reasonable prices for first-tier brands. On the other hand, spot supply is tight due to low operating rates and other reasons. In long and short situations, the big picture can be the focus. Foreign trade, terminals and channels have different supply priorities.

The price market is gradually rationalizing, and the obvious performance is that the market price gradient is obvious. The price difference of similar products is about 1,500 yuan / ton, and the price span has gradually narrowed. The market price positioning of products is mainly determined by value, supply and demand relationship, and value is determined by quality, brand, psychological expectations and many other factors. Matching titanium dioxide at any price. The focus is on quality. The psychological expectation is that big brands are high-quality and expensive.

[The export volume of titanium dioxide in October 2019 decreased by 5.26% month-on-month]

According to the statistics provided by the General Administration of Customs, China’s imports of titanium dioxide in October 2019 were 18,240.04 tons, a 63% increase from the previous month and a 10.77% increase from the same period last year. The average import price for the month was USD2902.04/ton. From January to October 2019, the cumulative import volume of titanium dioxide was 130508.04 tons, and the cumulative average import price was 3011.27 USD/ton, a YoY decrease of 18.86%. In October 2019, China’s titanium dioxide export volume was 7,9400.99 tons, a MoM decrease of 5.26% and YoY increase of 26.08%. The average export price for the month was USD2,117.06/ton. From January to October 2019, the cumulative export volume of titanium dioxide was 820,784.14 tons, and the cumulative average export price was USD2,222.35/ton, a YoY increase of 5.82%.

[Lonmonbillions: Xinli Titanium Industry will resume design capacity as soon as possible]

On November 22, Lonmonbillions (002601) answered investors’ questions on the interactive platform and stated that Yunnan Metallurgical Xinli Titanium Industry Co., Ltd. has an annual output of 60,000 tons of titanium dioxide, 10,000 tons of titanium sponge per year and 80,000 Ton. With three production lines per ton / year of high titanium slag, the company will resume the design capacity as soon as possible.

Currently, most China domestic rutile sulfates and anatase titanium dioxides are priced at RMB 13,500-15500 / t and RMB 11,500-12500 / t. The China domestic and imported rutile titanium dioxide is 17500-20000 according to the application amount. RMB / ton and RMB 25,000-27,000 / ton (the above are all spot prices without tax).

According to foreign media reports, on the afternoon of November 27, Beijing time, a chemical plant in PortNeches, Texas, exploded, and nearby residents were evacuated. No casualties were reported, but an explosion was reported in the Huntsman chemical plant, which damaged nearby buildings. According to TPC’s website, there are more than 200 people working here. The plant produces butadiene (combustible gas used to produce synthetic rubber (12640, 70.00, 0.56%)) and other petrochemical products, such as butane.

Yan Titanium industry analysts believe that the explosion has no impact on the titanium dioxide market. Huntsman did explode, but it was not a titanium dioxide factory. More precisely, Huntsman has no titanium dioxide business. In 1998, the United States Huntsman Corporation (HUNTSMAN) acquired a 70% stake in Tioxide Group PLG, a wholly-owned subsidiary of British Empire Chemical Industry Corporation (ICI), and TIOXIDE titanium dioxide has since belonged to HUNTSMAN. On July 24, 2017, Venator was born out of Huntsman in the United States and independently operated Huntsman’s titanium dioxide and high-performance additive business.

Second, market outlook

This week, the China domestic titanium dioxide price market is weak. Yan Xun, an analyst with Yan Titanium and Titanium, believes that November has closed, and the price market in the post-coating exhibition era is gradually clear. A few personalized operations are expected to have little impact on the price market. The price market at the beginning of December is more critical and directly affects the foundation of the multi-year market. Most manufacturers and distributors mainly collect payments. Most of the orders with small profits but quick turnover and fast-in and fast-out may be born in December. Some holders are The sales volume and receipts of the business may be increased, or unconventional prices may appear, but most terminals are more rational. In the short term, the price market at the beginning of December was mainly stalemate and stabilized. Individual orders were negotiated with the amount of use and the form of payment. When the buyer and the seller meet their needs, all prices are reasonable.