April 17, titanium dioxide leading enterprise Longpython Baili Xiangyang base promotion, 996 grade titanium dioxide pricing of 14,000 yuan (ton price, the same below), relative to the normal price of 15,700 yuan profit 1700 yuan. Affected by this, panic spread in the field, the manufacturers have to make profit sales, titanium dioxide market as a whole into the downward channel.

manufacturers price promotion

Longzhong information titanium dioxide analyst Chen Shiwei introduced, April 17~21, the nuclear titanium dioxide, Pangang titanium industry, Ji 'nan Yuxing, titanium sea technology and many other enterprises have titanium dioxide quotes down 500~1000 yuan. In addition, Shandong Dongjia, Shandong Daoen and other enterprises plan to reduce the price of titanium dioxide by 300~800 yuan at the end of April. On the whole, each manufacturer a single talk, the actual transaction price is lower.

"The price reduction promotion of titanium dioxide enterprises is mainly aimed at Shanghai Yan titanium Industry Company and other large distribution enterprises to sell profits. Although only for a specific brand of titanium dioxide profit, but also lower the sales price of other brands of products." Yang Xun, titanium analyst at Shanghai Yan Titanium Co., said.

Under the influence of market pessimism, on April 17, the price of rutile titanium dioxide in southwest and central China was the first to drop 500 yuan. Among them, the price in the southwest was reduced to 13,500 ~ 15,200 yuan; In central China, the price will be lowered to 13,900 to 15,200 yuan. On April 20, the price of rutile titanium dioxide in southwest China was cut again by 500 yuan to 13,000 to 15,200 yuan. On April 21, the negotiation price of low-end titanium dioxide in the South China market was reduced by 500 yuan to about 13,000 yuan.

"In order to protect the interests of dealers, the nuclear titanium dioxide from April 20 to provide dealers with 300 to 500 yuan of insurance services, the overall offer was reduced by 800 yuan. On April 22, individual enterprises in East China have insured agents for 500~800 yuan, and dealers will also give a profit to the downstream, driving the overall weak titanium dioxide market." Chen Shiwei said.

downstream demand

"the titanium dioxide downward price is mainly caused by downstream demand outside China." Yang Xun analysis said.

From China, titanium dioxide is mainly used in coatings, plastics, ink and other industries. Among them, the demand for paint is the largest, accounting for more than 60% of the total demand for titanium dioxide. In recent years, due to the delay of the resumption of coating enterprises and the decline in the operating rate, the demand for titanium dioxide in China has contracted sharply.

In addition, the real estate industry downstream of the coating terminal downturn trend, it is difficult to bring support to the upstream market. Data from the National Bureau of Statistics show that from January to February, the newly started construction area of China's real estate was 45% less than the same period last year. Although the epidemic has eased, the country's population-intensive construction sector remains constrained. "On the whole, the situation in China's real estate industry is not very good in the near future, and the demand for paint may be reduced by about 30% compared with the same period last year." Chen Shiwei said.

The continuous spread of foreign epidemic and export obstruction is also an important reason for the weak decline of China's titanium dioxide market.

"China's titanium dioxide exports accounted for a relatively large. In January to February this year, China's titanium dioxide production was 481,400 tons, and exports accounted for about 36.2%. At the end of March, with the outbreak of overseas epidemics, the export volume of titanium dioxide declined year-on-year, and China's inventory was at a relatively high level. At the same time, the epidemic situation abroad also affected the export of titanium dioxide downstream coatings and other products, which led to a decline in demand for titanium dioxide." Zhuo Chuang information titanium dioxide analyst Wang Juan said.

"Short-term titanium dioxide export market is not optimistic. India is a major importer of titanium dioxide in China, with imports accounting for about 13% of China's total exports. As the epidemic continues to spread, India. Shut down the country. The measures have been extended to May 3, other Brazil, Indonesia and other countries with serious epidemics will also reduce imports of titanium dioxide. It is expected that China's titanium dioxide exports will fall by 15% to 20% in April, which will continue to suppress China's titanium dioxide market." Chen Shiwei said.

Future market storage space

In addition to the downturn in demand, titanium dioxide main raw material titanium concentrate prices fell, it is difficult to give titanium dioxide market to cost support.

"Raw titanium concentrate accounts for about 30%~35% of the cost of titanium dioxide, the current titanium dioxide plant operating rate is not high, titanium concentrate also lost the support of the procurement end. From raw titanium concentrate to titanium dioxide to downstream coatings, the entire industry chain is relatively weak." Yang Xun said.

It is understood that the current mainstream price of titanium concentrate in China is about 1330 yuan, down about 270 yuan from the end of February, the price of raw materials is reduced to the cost of titanium dioxide is about 500 yuan, and the current average price of titanium dioxide is basically down 500 yuan. According to the profit analysis of titanium dioxide, titanium dioxide production enterprises have 2000~3000 yuan profit space." At present, the supply of titanium dioxide is relatively stable, and under the continued low demand, it is expected that the price of titanium dioxide has room to fall. Chen Shiwei said.