Entering the off-season Titanium Dioxide market, affected by the exchange rate gains and losses caused by the decline of the US dollar and the appreciation of the Chinese yuan; At the end of the year, several large titanium dioxide factories have maintenance plans to change the current pattern of strong supply and weak demand; After a month on month decrease in titanium dioxide production in November, there is still an expectation of a decrease in production in December, as well as a year-on-year increase in titanium dioxide exports since the beginning of this year. Titanium dioxide companies have ushered in the seventh round of price increases this year. According to the price increase letters from LB Group and CNNC Titanium White, starting from January 1st next year, the company's various models of titanium dioxide will increase by $100 per ton to various international customers. It is understood that this move is mainly to cope with the loss of profits caused by the significant increase in the RMB/USD exchange rate.
LB Group and several other enterprises have raised the price of titanium dioxide, and partial price adjustments will be implemented on January 1, 2024
According to the price adjustment letters from LB Group and CNNC Titanium White, starting from January 1st next year, the company's various models of titanium dioxide will increase by $100 per ton to various international customers.
The price adjustment letter from Lubei Supply Chain and Yutu Titanium Industry shows that since December 18th, they have raised the price of their company's titanium dioxide by 500 yuan/ton.
Export: Except for January, the export of titanium dioxide decreased by 7.01% year-on-year, and the remaining 10 months showed a year-on-year increase
It is not difficult to see from the price increase letters of leading enterprises in this round that their price adjustment is mainly focused on overseas markets. A staff member of LB Group recently stated in a media interview that there are not many domestic titanium dioxide companies expanding into overseas markets. The reason why the company is adjusting prices for overseas market customers is mainly because the international market business of titanium dioxide is relatively good, and the domestic market is still good, but it is not as good as in September and October before.
The international market business mentioned by LB Group is good, which can also be seen from the export data of titanium dioxide in China this year. According to data from the General Administration of Customs, the export volume of Chinese titanium dioxide increased by 16.54% year-on-year in November, 19.95% year-on-year in October, and 50.57% year-on-year in September. The export data of titanium dioxide for the first 11 months of this year shows that except for a year-on-year decrease of 7.01% in titanium dioxide exports in January, the other 10 months have shown a year-on-year increase trend.
November production decreased month on month+December production forecast reduced to support off-season titanium dioxide increase
If the increase in exports is an important factor supporting the off-season price increase of titanium dioxide, then the month on month decrease in November production and the expected decrease in December production will also be reasons to support the increase in titanium dioxide. From the perspective research production data, in November 2023, China's titanium dioxide production was 335000 tons, with a month on month decrease of 1.4% and a year-on-year increase of 7.7%. The cumulative production was 3.505 million tons, a cumulative year-on-year decrease of 0.4%. As the market enters the traditional off-season for titanium dioxide, some titanium dioxide companies have begun to arrange maintenance plans to alleviate the pressure caused by the rapid increase in inventory, resulting in a decrease in titanium dioxide production. With the increase in inventory of some manufacturers, the new production capacity of titanium dioxide is gradually being released, and market competition is becoming increasingly fierce. Some titanium dioxide companies are expected to continue to suspend production, and it is expected that titanium dioxide production will continue to decrease in December.
Exchange rate gains and losses, tight spot prices for some titanium dioxide companies, and high raw material costs support price adjustments
The price negotiation center for rutile type titanium dioxide has recently increased by 500 yuan/ton, and the price negotiation center for rutile type titanium dioxide has recently increased by 500-700 yuan/ton.
In addition to the increase in exports since the beginning of this year supporting titanium dioxide companies to adjust prices, according to the research, the exchange rate gains and losses caused by the decline of the US dollar and the appreciation of the Chinese yuan are also important reasons for several titanium dioxide companies to issue price increase letters recently. In terms of supply and demand, as titanium dioxide enters the off-season, the price of titanium dioxide is operating at a low level. Although there is no significant improvement in demand, considering that many large titanium dioxide factories have maintenance plans by the end of the year, titanium dioxide enterprises enter the market at low prices to purchase, and the pattern of strong supply and weak demand is improving accordingly. Industry insiders have stated that the titanium dioxide market has been active in recent times, with some titanium dioxide companies experiencing tight spot prices. Currently, the production and sales of titanium dioxide in the market are balanced.
In addition, the price of titanium concentrate remains stable at a high level, coupled with the upward trend of sulfuric ACID prices, leading to high production costs for titanium dioxide manufacturers and increased support for titanium dioxide prices from high raw material costs.
From the historical trend of spot prices of titanium dioxide, it can be seen that the current spot prices remain unchanged from the previous trading days. This is also similar to the previous rounds of price increases where market acceptance needs to be observed. In this round, some titanium dioxide companies still need to observe the level of market acceptance in their price increases. Considering the current traditional off-season for titanium dioxide, it is expected that the price of titanium dioxide will remain stable. We will continue to monitor the changes in future spot transactions.
