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On February 12th, Longsheng Lilian Group, which has the largest production capacity in China, announced that it will raise the sales price of titanium dioxide from now on. The domestic customers will increase the price by 500 yuan/ton on the basis of the original price, and the international customers will raise the price by US$100/ton. The prelude to the price increase of titanium dioxide was opened. In the following week, Detian Chemical, China National Nuclear Titanium, Jinan Yuxing, Haifeng Xinhua, Chuangda Yutu, Daon Titanium, and Jinpu Titanium announced that they have raised the price of titanium dioxide products.
“One of the reasons for this price increase is the operation of the domestic leading enterprises. Before the holiday, the equipment of the Longyan Lilian Deyang base was shut down for about 20 days. After the resumption of production on January 18, the order was placed on January 24th. Operation. After the holiday, the titanium dioxide market will usher in the first round of purchases, and at the same time, Longyi Lilian will take the lead in price increases, and the linkage price increase of other companies has become a reality," said Chen Shiwei, an analyst of Longzhong Information Titanium Dioxide.
CBC Titanium Zirconium Analyst Hao Zhimin also said that the price of Longyu Lilian is more obvious. Generally, the price increase will have a stimulating effect on the domestic market. Most producers will increase their shares. This is the case last year. This year, the situation is almost the same. . From the current point of view, a number of companies have begun to rise, and the price of titanium dioxide in the later period is expected to gradually increase.
Yang Xi, an analyst of Yan Titanium and Titanium, believes that the price increase of the international titanium dioxide giant also promotes the domestic titanium dioxide market. It is understood that on January 31, titanium dioxide international giant Venator announced that the price of titanium dioxide sold in the United States and Canada was raised by 0.07 US dollars / lb (about 154 US dollars / ton), the new price was implemented on February 1.
Analysis of the deep-seated reasons for the price increase of titanium dioxide at home and abroad, the industry believes that the contradiction between supply and demand is outstanding.
According to Yang Xun, the current overall social inventory level of titanium dioxide is low, and the actual comprehensive inventory of dragon enterprises is about 10,000 tons less than the normal.
"Since the fourth quarter of 2018, due to factors such as limited production in winter, the operating rate of domestic titanium dioxide enterprises has declined, and the trend of destocking in the industry is obvious. Before the Spring Festival, Longsheng Lilian will pre-order, and many enterprises will suspend production in advance. Leading many downstream enterprises and traders have not prepared stocks; after the Spring Festival, titanium dioxide manufacturers generally have low stocks, and most of them are still on holiday, making the supply of titanium dioxide relatively low; in order to meet the traditional consumption season of March to May, Downstream enterprises have begun to concentrate on purchasing and organizing production. The above factors have led to the need for less supply of titanium dioxide, and the price increase is also a matter of course." Hao Zhimin analysis.
In addition to the need for many factors, the stability of the raw material titanium concentrate market also supports the rise in the price of titanium dioxide.
According to the monitoring data of the business community, on February 13, the price of the main domestic titanium concentrate Sichuan Panzhihua brand TJK46 was 1,250 yuan / ton, which was 17 yuan higher than the upstream starting point, an increase of about 1.4%.
In addition, the recent transportation vehicles are reduced, the logistics is relatively tight, and the cost of freight for titanium dioxide tons is 30-50 yuan higher, which is also a factor for the price increase of titanium dioxide.
Titanium dioxide market has risen
After the holiday, some domestic enterprises and merchants have not resumed work, but the titanium dioxide market has already set off a wave of price increases.