Since August, China's titanium dioxide enterprises have raised the price one after another. As of August 14, including Qianjiang Fangyuan Titanium Dioxide Co., LTD., Guangxi Jinmao Titanium Industry Co., LTD., Anhui Annada titanium industry Co., LTD., Panzhihua Titanium Sea Technology Co., LTD., Shandong Dao En titanium Industry Co., LTD., including 23 titanium dioxide enterprises have announced the increase in titanium dioxide sales prices, the Chinese market price rose 500~600 yuan (ton price, The same below), the international market price increased by 80~100 US dollars.

In fact, in the last month titanium dioxide market has been a round of price increases, nearly 30 production enterprises declared, including Jinpu Titanium industry Co., LTD., Longboa Baililian Group Co., LTD., Panzhihua Titanium Chemical Co., LTD., China's sales price generally rose 500 yuan. From late July, the titanium dioxide market entered the period of consolidation after the rise.

It is worth mentioning that the adjustment time of titanium dioxide this year is ahead of previous years. For a long time, September and October is the traditional season of titanium dioxide industry. However, in the first half of this year, affected by the epidemic and weak demand, titanium dioxide prices continued to decline. As of the end of June, China rutile titanium dioxide including tax factory price of 12,000 to 14,500 yuan; Anatase titanium dioxide with tax factory price of 10,300 ~ 11,800 yuan, down nearly 4,000 yuan than the highest price in the whole year, enterprise operating pressure increases, there is an increase in demand in July.

For the reason of this round of titanium dioxide enterprises to raise prices, Yan titanium titanium industry analyst Yang Xun believes that the export market is strong, supply shortage is the main factor.

"At the end of the first quarter, the epidemic in China is severe, producers are more pessimistic, titanium dioxide prices fall faster, enterprises are forced to reduce the operating rate and even production, supply significantly reduced. At the same time, China's demand is limited, many enterprises to adjust the sales strategy, the customer group transferred to the relatively light affected by the epidemic countries and regions, the export market showed a good trend. According to the statistics of the General Administration of Customs, from January to June, China's cumulative exports of titanium dioxide totaled 563,100 tons, an increase of 81,400 tons over 2019, an increase of 16.9%. On the one hand, the supply contraction, on the other hand, the export volume has increased, which has directly exacerbated the tension in China's titanium dioxide spot market." Yang Xun analysis said that the current has entered the first stage of titanium dioxide price increase mode. — Warm up the market, then or dragon enterprises to confirm the letter, and finally most producers strongly follow up.

The price rise of raw and auxiliary materials is also a factor in the adjustment of this round of titanium dioxide enterprises. According to the information released by the Vanadium and titanium trading center in Panzhihua on August 9, there are 13 titanium dioxide enterprises in August 3 to 7 this week, and the reason for price adjustment is basically the price of raw and auxiliary materials.

Vanadium and titanium trading center believes that the recent titanium dioxide market trading is general, most of the production enterprises are in a state of loss. The number of titanium dioxide enterprises issued a letter to promote the rise, to a certain extent, boosted market confidence and stimulated the enthusiasm of downstream procurement. However, the new price signing situation still needs time to demonstrate.

Yang Xun believes that most of the manufacturers that have been declared this time are in the "return" stage due to more domestic sales and foreign trade orders in the early stage. Another part of the manufacturers due to the higher operating rate and relatively stable shipments, so the stock is sufficient, stable supply, the second round of price increases just want to "go with the flow".

Relevant industry insiders pointed out that the current situation of demand is unstable, resulting in titanium dioxide market price chaos gradually raised, the most obvious in South China, the holder of a lower price than one. This reflects the holder of the comprehensive judgment of the market and the lack of confidence in the future market. In fact, the more price war the more to polish the eyes, the current channel market is being purified, individual non-compliant dealers will gradually out.

Yang Xun believes that there are three possibilities for the traditional peak season demand of "gold nine silver ten" : First, there are long-term stock customers, and there will be almost no purchase plan from September to October; Second, there are 2 months of stocking customers, September just arrived a new round of procurement cycle, but wait-and-see sentiment is stronger, more on-demand procurement, such customers are relatively more; Third, customers who have 1 month of stocking, in August or the second round of stocking, will flood the peak season in the past. On the whole, this "gold nine silver ten" peak season has the risk of weakness, but it will not go far. At present, part of the mainstream factory spot is still tight, and the price is determined to rise, it is expected that the late August titanium dioxide market or a large probability of continued growth, the second round of price increases will basically consolidate the first round of price increases.

The industry is also generally expected, from the current strong export demand and small and medium-sized titanium dioxide enterprises have raised prices, leading enterprises in the industry will also raise prices.

Guotai Junan said that with the marginal weakening of overseas epidemic impact and the gradual recovery of demand, the low state of inventory superposition of higher load of chemicals is expected to usher in a round of replenishment market, and the price has an upward trend and the price is at a historically low level of varieties worthy of attention. At the same time, domestic demand is expected to boost demand, and it is recommended to pay attention to leading chemical enterprises with high performance certainty.

Changjiang Securities analysis believes that China is a big exporter of titanium dioxide, and its supply situation affects the global price of titanium dioxide. At present, overseas demand is strong, China's consumption is warming, superposition of raw material prices, China's titanium dioxide prices are expected to bottom out. At the same time, as mergers and acquisitions continue to carry out, the competitive pattern of titanium dioxide industry is getting better, and it can focus on the industry leaders.