In May, the Titanium Dioxide market was mostly in a weak and declining state, with abundant domestic supply and downstream entering the off-season. Purchasing enthusiasm decreased, market trading activity decreased, and inventory accumulated, putting downward pressure on domestic titanium dioxide market prices. In the off-season of demand, price pressure will continue, and it is expected that the price of titanium dioxide will continue to be under pressure in the next month.
As of May 22nd, the domestic price of rutile titanium dioxide is between 16000-16500 yuan/ton, and the focus of negotiations is mostly on the mid to low end level. The demand performance of the downstream coating industry is poor, and the overall procurement volume has declined. With the passage of time, domestic titanium dioxide production enterprises have started to accumulate inventory, and shipping pressure is also increasing, resulting in continuous pressure on prices. Since May, the titanium dioxide market has shown several characteristics in operation:
The price decline is not as significant as downstream expectations, and downstream purchasing willingness is low
Returning after the May Day holiday, the domestic titanium dioxide market has a shortage of transactions, with almost no purchasing intention downstream, and few inquiries. The reason for this situation is: entering the off-season of demand, coupled with a decline in the overall industry prosperity this year, downstream procurement has become exceptionally cautious. The sales price of titanium dioxide in various factories has been reduced by 300-500 yuan/ton, which has not met the downstream psychological expectations, resulting in many downstream companies withdrawing and observing, consuming previous inventory, and lacking purchasing enthusiasm.
The downward trend is obvious, but the factory slows down slowly
From the perspective of suppliers, as the downstream enters the off-season, the speed and magnitude of price reductions have limited stimulating effects on demand, and rapid price reductions have not seen any other effects besides further reducing profits. In this situation, titanium dioxide factories should control the pace of shipments and try to maintain price stability as much as possible. However, due to the different current situations faced by various enterprises, price policies also vary. In the face of difficulties in shipping, some enterprises choose to continue to lower prices in order to strive for faster shipping, reduce inventory accumulation, and reduce losses caused by the subsequent trend decline.
Continuous attention to EU anti-dumping results
The export proportion of titanium dioxide from China to the EU region is about 20%, which is also a relatively major export region. As the anti-dumping results approach, the market attention continues to increase, and once established, there will be downward pressure on the price of our titanium dioxide market.
Recently, the overall market sentiment has been bearish, and based on the price trends over the years, the demand from May to July was relatively weak, putting significant downward pressure on the market. At present, there is a high probability of a downward trend in the market under pressure in the later stage. We need to pay attention to the changes in China's titanium dioxide policy towards major trading partners, as well as the impact of these changes on market prices.
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