1、 Market analysis
In early June, the price of Titanium Dioxide continued to be bullish. Last week,Lomon Billions announced an increase of 500 yuan / ton on July 1. So far, five manufacturers, including tihai technology, have announced an increase of 500-800 yuan / ton in June. Some of them immediately implemented the increase, while others made an appointment for the increase in July. In this way, the red bullish in the third quarter is a global event. Now the trading market in June seems less optimistic.
For the current price, there are two voices in the market:
1. According to the current trading market, the off-season characteristics of titanium dioxide are very obvious, the demand shrinks, and the speed of goods moving by the cargo holders slows down. Due to the rising sea freight, serious shortage of positions, difficulty in booking cabinets, appreciation of RMB, and high prices, the volume of foreign trade and new orders have declined. On the one hand, the price of raw material titanium concentrate continues to climb, on the other hand, the downstream demand is mercilessly suppressed, titanium dioxide bears double pressure "splint gas", off-season market will have off-season price matching, so the future market is relatively weak, but even if titanium dioxide is 10000 yuan / ton, there should be no demand or no demand.
2. Similar to international producers such as chemours and Venator,Lomon Billions also made an appointment in advance for the price increase in July, followed by the peak season in August. Hot Sep. Oct. is a serious peak season. With the price boost of raw titanium concentrate, it can be predicted that there will still be "red" profits from July to October, and now only June is the off-season, The price market can breathe. In addition, the US dollar over 30% aggravates inflation, and the reasonable price range of titanium dioxide may be high in the future.
We believe that: it happens to be the semi annual report. Judging from this wave of price operation of Longqi, the intention of keeping a high price stable and covering shipment is obvious. Regardless of the experience of not rising or falling, in fact, as long as the high price of 20000 yuan / ton is maintained, the future rate will probably be an era of squeezing the space of traders, and the profit rate will be seriously compressed, and more will depend on volume. When the value of goods is large, the threshold of the industry is also raised, and the objective law of the strong and the weak quitting is highlighted.
At present, the trading market is still in a state of confrontation, and the price market is in a state of game. High price titanium dioxide forces end customers to try substitutes
Manufacturers control the source of goods, and most of them are relatively strong. The source of goods of agents can be basically guaranteed, and there are also cases of reduction and supply reduction, which aggravates the shortage of spot goods in the terminal market.
At present, the mainstream prices of most domestic sulfuric ACID rutile and anatase titanium dioxide are 19800-21000 yuan / ton and 18300-19000 yuan / ton, while the mainstream prices of domestic and imported chlorination rutile titanium dioxide are 22500-24000 yuan / ton and 27500-29000 yuan / ton according to their uses (all of the above are cash ex warehouse prices including tax).
2、 Future forecast
This week, the domestic titanium dioxide price market is strong, we think: at present, the demand is weak, the price market is chaotic, there are still a small number of low price sales. As expected in the early stage, the latest price policy of Longqi basically plays the purpose of "keeping stable at a high level", and the inventory of manufacturers and downstream circulation is particularly critical. At present, the foreign trade orders of major manufacturers are coming to July, and there is no inventory pressure for the time being, but the following prices are mainly determined according to the inventory situation. In the short run, the market under the supply-demand confrontation is mainly firm and conservative, and the profit margin of the goods holders is lower. The important thing is to see the price rise in July, and the actual price is discussed according to the spot situation.
