Recently, the price of chemical raw materials skyrocketed, causing a series of chain reactions in the industrial chain. Affected by the supply cost of raw materials and the rising price of auxiliary materials, the sales price of raw materials such as Titanium Dioxide increases almost once a month.
At present, the output of major domestic titanium dioxide manufacturers is stable as a whole. Most manufacturers seize the opportunity of overseas market and seize the market share by making use of the advantages of insufficient supply of overseas leading enterprises and product price difference. In the early stage, orders are still in production, and the spot supply is still tight. The current market spot inventory low, titanium dioxide prices are expected to remain high.
Titanium dioxide industry raises price in April
On April 6, CNNC titanium dioxide announced that it would comprehensively increase the sales price of various types of titanium dioxide from now on. Among them, the sales price of domestic customers increased by 1000 yuan / ton, and the export price of international customers increased by 150 US dollars / ton.
On March 31, Chemours issued a price adjustment letter for titanium dioxide, stating that in view of the reasons for the rise of raw materials and transportation costs in the upstream, the company decided to increase the price of all specifications of titanium dioxide (Ti pure) purchased by the company in China by US $200 / T from May 1, 2021.
CITIC Titanium Industry Co., Ltd. issued a notice of titanium dioxide price adjustment, saying that the company's costs were rising due to the substantial rise in the prices of raw materials and transportation upstream of titanium dioxide, and the price of CR series titanium dioxide by chlorination method was increased from April 1. The price of domestic titanium dioxide increased by 1500 yuan / ton; the price of foreign titanium dioxide increased by 200 US dollars / ton.
Zhentai Chemical Co., Ltd. issued a notice of titanium dioxide price adjustment, saying that due to the substantial rise in the price of raw materials, combined with the current market situation, the company decided to increase the price of various types of titanium dioxide of the company since April 6. The domestic price of titanium dioxide increased by 1000 yuan / ton, and the foreign price of titanium dioxide increased by 150 US dollars / ton.
Xinfu titanium dioxide Co., Ltd.: since April 1, the original price of rutile titanium dioxide has been increased by 1000 yuan / ton, and the export price has been increased by 150 US dollars / ton.
Lomon Billons: since April 1, the price of various types of titanium dioxide has been increased by 1000 yuan / ton for domestic customers and 150 US dollars / ton for international customers.
Shunfeng titanium industry: since April 1, the company has increased the price of titanium dioxide of all models by 1000 yuan / ton on the basis of the original price.
Titanium dioxide sales prices may continue to rise
According to incomplete statistics, China's titanium dioxide production capacity will reach 4.17 million tons in 2020. In terms of production capacity,Lomon billions has the largest market share in China's titanium dioxide industry. In recent years, with Lomon billions merger and acquisition of small and medium-sized titanium dioxide enterprises,,Lomon billions has occupied 24.22% of the domestic market share in 2020. CNNC titanium dioxide ranked second, with a total capacity of 340000 tons, accounting for 8.39% of the domestic market share.
From the perspective of new production capacity, compared with the overseas titanium dioxide Market in the future, there is almost no new production capacity. It is estimated that in 2021-2023, China's titanium dioxide market will have 940000 tons of new production capacity, including 480000 tons of new production capacity by chlorination method and 460000 tons of new production capacity by sulfuric ACID method. In 2022, the new capacity of titanium dioxide in China is the largest, with an estimated capacity of 680000 tons.
It is estimated that after 2023, after the release of new production capacity of China's titanium dioxide industry, Matthew effect of China's titanium dioxide market will intensify, ,Lomon billions will continue to maintain the first market share, the market share of other small capacity enterprises will be reduced to varying degrees, and small capacity enterprises in the industry may face the risk of elimination.
According to statistics, in 2020, China's titanium dioxide industry has 40 full process manufacturers with normal production conditions and above scale, with a comprehensive effective capacity of 3.845 million tons / year. Due to the large pollution of titanium dioxide project, especially the sulfuric acid method has been listed as the restricted level in the national industrial policy, the environmental protection approval is extremely strict, and it is difficult for new plants to pass the approval, which basically prevents enterprises other than existing manufacturers from entering the industry.
According to relevant sources, in the case of limited production capacity, the domestic titanium dioxide market will be in short supply. This situation may last for two or three years until the new production capacity is implemented. Therefore, the future price of titanium dioxide will not stop here.
