Following the price increase letter issued by Longbai Group on the evening of November 11, CNNC Titanium Dioxide and Jinpu Titanium also issued announcements on price adjustment of main products on the evening of November 13.
Under the pressure of sluggish demand, the domestic titanium dioxide price has remained depressed in recent months. This is also about half a year later, the industry once again focused on price adjustment.
Titanium dioxide manufacturers intensively issue price increase letters
In the evening of November 13, CNNC Titanium Dioxide announced that, according to the recent international situation, market demand, changes in the RMB exchange rate and other factors, the Company's Price Committee had studied and decided to comprehensively raise the sales prices of various types of titanium dioxide from November 13, 2022. The sales price of domestic customers will be increased by 800 yuan/ton, and that of international customers will be increased by 100 dollars/ton.
On the same day, another listed company, Jinpu Titanium, which is mainly engaged in the production and sales of titanium dioxide, also announced that it had decided to increase the sales price of anatase and rutile titanium dioxide by 800 yuan/ton for domestic customers and 100 dollars/ton for international customers from November 11, 2022, based on the original price.
Earlier, on the evening of November 11, Longbai Group issued a price increase announcement.
According to the announcement, Longbai Group decided to adjust the sales price of some products of the company and its subsidiaries on the basis of the original price according to the changes in the international situation, product market demand, depreciation of the RMB exchange rate and other factors. Among them, titanium dioxide of various models (including sulfuric ACID titanium dioxide and chlorinated titanium dioxide) will be increased by 800 yuan/ton for domestic customers and 100 dollars/ton for international customers; Sponge titanium products will be increased by 2000 yuan/ton for various customers.
The listed companies in the relevant announcements all said that the overall increase in the sales price of the main products would help further enhance the company's sustainable profitability, improve the company's market position and influence, and is expected to have a positive impact on the company's operating results.
Cost support or sustainability
Prior to the intensive disclosure of the price adjustment announcement by the titanium dioxide manufacturers, the titanium dioxide market has seen price increase letters since the middle of October.
At the end of October, affected by the market situation of titanium dioxide and the rise of production raw materials, nine enterprises sent letters that the domestic price of titanium dioxide was increased by 600-1000 yuan/ton, and the international price of some enterprises was increased by 80-150 dollars/ton. Under the continuous influence of the price rise letter, new orders in the downstream market increased significantly, some enterprises went to the warehouse more, the market stopped falling, and the enterprise quotation was firm.
Due to the previous price increase letter issued by some manufacturers, in the first ten days of November, the price of titanium dioxide remained stable in the market, with the exception of the slightly higher price of some goods that became tense. On the one hand, this is due to the fear that the terminal market may have a small amount of goods in the early stage, and some demand has been overdrawn. On the other hand, it is still caused by the terminal demand being in a weak state. This wavelet market has achieved the dual effect of "stopping the decline" and "moving the stock". However, he believes that the promotion of Longbai Group and other leading enterprises has given confidence to the long weak price market. It is expected that other manufacturers will follow up the promotion one after another, which may stimulate the trading and investment market in the middle and late November, and at the same time, it may have a positive impact on the future market or the probability of more profits.
Recently, people in the European market said that due to the high energy cost, the production and sales of titanium dioxide devices in Europe declined significantly.
Simon Turner, president and CEO of European titanium dioxide manufacturer Venator, said that in view of the high energy costs in Europe, Venator has reduced its factory in Urdingen, Germany, to the lowest production level, and its factory in Duisburg is also reducing production. As a result, the sales of its titanium dioxide products in Europe and Asia declined significantly. It is estimated that the company's titanium dioxide sales in the third quarter will decline by 25% compared with the second quarter.
Market insiders believe that Venator's situation is also the current situation of many European chemical enterprises. Hartwig Michels, president of the European Petrochemical Association (EPCA), said that the weak market environment, sluggish production margins and the easing of supply chain problems may open the European chemical industry market to cheaper imported products, forcing more chemical manufacturers in Europe to reduce operating rates. Due to the soaring energy prices, the production of some materials has become uneconomical, and a large number of European chemical and fertilizer industries have stopped production. Other market participants estimate that the production of titanium dioxide in Europe may decline by 10%~20%.
The production capacity of titanium dioxide in Europe accounts for about 18% of the world's total. At present, many titanium dioxide enterprises in Europe have stopped production and reduced production. The production capacity has been reduced to 20% of the total load, and the supply is tight. As the International Monetary Fund, OECD, European Commission and other institutions continue to reduce their GDP growth expectations, the speed and depth of economic environment deterioration have exceeded expectations. It is expected that the weakness of many chemical markets will last for a long time next year.
