Since March, the letter of Titanium Dioxide price increase has been sent both at home and abroad, and the titanium dioxide industry is attracting a "ferocious" price increase tide. At present, the mainstream market quotation of rutile titanium dioxide by sulfuric ACID method is 19000-19800 yuan / ton, the mainstream market quotation of anatase titanium dioxide is 15500-16000 yuan / ton, and the mainstream market quotation of titanium dioxide by chlorination method is 21000-23000 yuan / ton.
Export market demand continued to be strong, more than 20 producers concentrated on the rise
As for the current round of price increase, the industry generally believes that it is due to the decrease of foreign titanium dioxide production capacity in recent years, while the demand is still growing steadily, forcing some foreign downstream enterprises to import titanium dioxide. In addition, China's titanium dioxide products have higher cost performance, so the export volume of titanium dioxide has increased significantly.
Under the favorable foreign trade export market, more than 20 domestic manufacturers, such as CITIC titanium, Anada and LOMON Billions, have announced price increases. The overall price adjustment range of titanium dioxide is between 800-1500 yuan / ton. Moreover, some domestic manufacturers have received orders until May, and the supply side is in short supply. The actual transaction is a single negotiation.
It is worth noting that in terms of upstream raw materials, the price of titanium concentrate in Panxi region is also in a strong upward state, the supply of titanium ore is tight, and the miners are reluctant to sell, which has boosted the price of titanium dioxide.
At present, due to the shortage of supply, small and medium-sized customers basically can't get the goods. The company only supplies the large customers who purchase more than 1000 tons per month.
At present, the quotation of titanium dioxide is close to the historical extreme value. Although there is a similar quotation between the historical titanium dioxide market and the current stage, the response of the terminal at that time is good, and it is still not afraid to buy high price orders.
We believe that at this stage, the domestic titanium dioxide market, stimulated by favorable conditions, has a price supporting attitude. It is expected that the titanium dioxide price will run at a high level in the near future. It is suggested that attention should be paid to the market orders and the start-up trends of relevant leading enterprises.
Industry Matthew effect intensifies
In addition to foreign demand factors, China's capacity upgrading is another driving factor leading to such a fierce price cycle of titanium dioxide.
According to the data, China is the country with the largest titanium dioxide production capacity in the Asia Pacific region. In 2019, China's titanium dioxide production capacity accounted for 45.3% of the global total production capacity. However, from the perspective of single enterprise production capacity, there are still many small enterprises with a production capacity of less than 100000 tons in China.
According to the statistics of titanium dioxide sub center of national chemical Productivity Promotion Center, by the end of 2020, there are 42 full process titanium dioxide production enterprises in China, including 12 titanium dioxide enterprises with a production capacity of more than 100000 tons in 2020, and 30 small enterprises with a production capacity of less than 100000 tons. In 2020, the comprehensive output of titanium dioxide of enterprises with more than 100000 tons is about 2.5722 million tons, accounting for 73.24% of the total national output in 2020.
At present, titanium dioxide enterprises in China are in the stage of capacity expansion and upgrading. At present, the production process of titanium dioxide products in the world is still dominated by sulfuric acid process. About 42.5% of titanium dioxide production capacity in the world uses chlorination process, while 84% of titanium dioxide production capacity in China uses highly polluting sulfuric acid process. It is against this background that China's environmental protection policy is becoming more stringent, small capacity is shut down due to environmental non-standard, the construction speed of capacity above scale is also limited, and the overall capacity of titanium dioxide produced by sulfuric acid process is declining.
In addition, due to the global titanium dioxide Market in 2021-2023 almost no new production capacity, and China's Capacity Upgrading supply reduction, China's titanium dioxide Market Matthew effect will intensify.
In terms of listed companies, China's titanium dioxide production capacity will reach 4.17 million tons in 2020. According to the production capacity, the largest market share of titanium dioxide industry in China is longmang Baili. In recent years, with LOMON BILLIONS merger and acquisition of small and medium-sized titanium dioxide enterprises, LOMON & BILLIONS will occupy 24.22% of the market share in 2020. CNNC titanium dioxide ranked second in market share, with a total capacity of 340000 tons, accounting for 8.39% of the market share. At present, there are four low pollution titanium dioxide enterprises in China, among whichLOMON & BILLIONS has the largest capacity of 360000 tons.
We believe that with the support of demand, titanium dioxide in 2021 is expected to start a strong upward cycle. In the short term and medium term, supply and demand will maintain a tight balance in 2021; in the long term, supported by titanium concentrate, orderly production expansion, and improved leading concentration, the price center is expected to maintain near the historical median, and the cyclical fluctuation will weaken.
