Under the pressure of rising prices of energy and raw materials, Titanium Dioxide giants have shouted "up" recently.
On February 28, a price increase letter from titanium dioxide giant Chemours chemical showed that from April 1, all specifications of Ti pure titanium dioxide in Greater China will increase by $200 / ton. Just a few days ago, tenor chemical, Connors and fannengtuo also announced price increases from April 1.
The market sentiment of this wave of price rise is brought up by foreign suppliers, and an important factor in its price rise is cost pressure. In March, the main raw materials of titanium dioxide such as titanium concentrate and sulfuric ACID are still expected to rise, and the price of titanium dioxide is expected to rise.
Transmission cost
The price adjustment is accurate to $5 / ton
In the current round of price increase of titanium dioxide giants, the price increase of Tronox chemical is worthy of attention. Unlike Kronos, Venator, Chemours chemical and other companies, which increased by 100 units, Tronox chemical made it clear in the price increase letter: since April 1, the price of titanium dioxide will be increased by 150 euros / ton in the European market, and the price in the Middle East, Africa and Eastern Europe will be increased by 175 dollars / ton or 155 euros / ton.
Differentiated growth in different markets means that there has been differentiated demand growth in different regions of the global market. Cost pressure gives birth to the driving force of price rise. Generally, most of them adjust the price in whole hundred units. It is rare to increase the price to 5 dollars or 5 euros. (Teno chemical) seriously transmits the cost pressure.
Recently, energy prices have fluctuated greatly. In terms of crude oil, Brent crude oil futures rose by more than 25% in the first two months of 2022, and American crude oil futures rose by about 27%. In terms of natural gas, on February 24, the European natural gas benchmark price TTF jumped by more than 50% to 132.71 euros / MWh, the highest since 2022.
"As highlighted in the profit statement for the fourth quarter of 2021, we are experiencing cost pressures on energy, chemical and other raw materials and freight, and we expect to continue to face these pressures throughout the second quarter of 2022. Therefore, it is necessary for us to take action to pass on higher costs." Tronox chemical made it clear.
Previously, the price has been adjusted, and domestic enterprises are mainly on the sidelines
While the international titanium dioxide giants have raised prices one after another, domestic enterprises are still mainly on the sidelines, and only individual enterprises such as Tianlun chemical announced price increases. On February 28, Tianlun chemical said that from now on, the domestic price of titanium dioxide of TLA anatase and TLR rutile crude product (powder) will be increased by 600 yuan / ton, and the foreign trade price will be increased by 150 US dollars / ton.
Data show that in February, the domestic titanium dioxide market achieved an industry wide output of about 285600 tons, a month on month decrease of 8.64% and a year-on-year decrease of 2.70%. In terms of inventory, at present, the inventory level of major mainstream manufacturers is in the range of 10-25 days, and the inventory of manufacturers with a capacity of about 100000 tons / year is mostly concentrated in 5000-8000 tons. With the recovery of logistics after the Spring Festival, the delivery rhythm of domestic and foreign trade orders of the seller is accelerated, and the inventory is digested. It is expected that low inventory will provide positive support for the price.
Although affected by the sluggish consumption in terminal real estate and other industries, it has a certain pressure on the price rise. However, the supply side is expected to remain tight in March. Low inventory, multiple orders and strong cost support will still provide bottom support for the market, and short-term prices are easy to rise but difficult to fall. With the price adjustment of foreign suppliers in the second quarter, domestic sellers had an expectation of rising in early March.
However, many domestic enterprises have raised prices once after the Spring Festival, which also reduces the probability of continuing to raise prices this time. However, if the cost continues to rise, domestic titanium dioxide enterprises will also raise the price of their products.
