What is the logic behind the price hike of titanium dioxide?
October 22, 2020
Titanium Dioxide (titanium dioxide) is a very important chemical raw material and the best white pigment at present. It is widely used in the fields of coatings, pigments, rubber, chemical fiber and so on. Titanium dioxide production upstream connected with titanium mining enterprises, downstream and real estate, automobile and other industries are closely related, can be called the "barometer" of national economic development. Since July this year, the price of titanium dioxide has continued to rise, which has attracted the attention of many investors.
China is a big country of titanium dioxide production and marketing. Domestic titanium dioxide enterprises are mainly concentrated in Sichuan, Henan, Shandong and other provinces. Recently, with longmang Baili, a leading titanium dioxide enterprise in China, announced that the price of titanium dioxide was increased, and many enterprises such as Jinpu titanium industry and China Nuclear titanium dioxide.
It is reported that the price adjustment is the third time that Lomon Billionshas raised the price of titanium dioxide this year. In July and September this year,Lomon Billions has issued two announcements to raise the price of titanium dioxide. So far, the spot price of rutile titanium dioxide is 15000 yuan / ton, up 7.3% month on month.
What is the logic behind the continuous rise in the price of titanium dioxide this year? We believe that on the one hand, it may be related to the recovery of real estate and automobile market; on the other hand, the continuous growth of titanium dioxide export has driven the price rise.
1. The property market and car market are getting warmer
Since this year, the property market in many places across the country has ushered in a "little spring". According to the Statistics Bureau, from January to August this year, China's commercial housing sales reached 9694.3 billion yuan, an increase of 1.6%, including 8676.9 billion yuan of residential sales, a year-on-year increase of 4.1%. Jiufang zhitou shares pointed out that titanium dioxide is an indispensable raw material for the production of coatings, and the warming of the property market has led to a boom in the coating industry. As an industry chain, titanium dioxide enterprises are affected by the market supply and demand relationship, so it is not surprising to increase the price of titanium dioxide.
On the other hand, titanium dioxide is also needed for the spray painting used in the automobile production process. In the second quarter of this year, with the gradual fading of the impact of the epidemic situation and the recovery of automobile production and sales, the demand for titanium dioxide has also increased.
2. The export of titanium dioxide continued to grow
In recent years, the export volume of titanium dioxide in China has been increasing by 12.30% in the international market. The favorable international market directly led to the rise of titanium dioxide price.
For the future market situation of titanium dioxide, Jiufang intelligent investment believes that the supply and demand of titanium dioxide industry is clear. Since the second quarter, the market is booming, and the falling space is small. After the price rises continuously, it may have a positive impact on related companies.
