Titanium dioxide rose for 8 months behind: cost support overlaid with supply and demand to the good
On the eve of the Spring Festival in 2021, a new wave of price increases for titanium dioxide products was set off in the country. This tide of price increases across the Spring Festival holiday, is since July 2020, titanium dioxide for the eighth consecutive month of price increases.
Prices bottomed out and rose for 8 months in a row.
Looking back at the whole of 2020, this year, the overall average price of titanium dioxide is mainly in the "N" shape trend. Entering 2021, the market is still hot.
Cost side support strong, titanium dioxide companies have laid out the upstream.
Rising prices of raw materials to raise costs is the main reason for the continued price increase of titanium dioxide.
Entering 2021, titanium concentrate prices are steadily increasing. A large part of the reason for the continued rise in titanium concentrate comes from the reduction in raw ore production and the overall reduction in titanium concentrate production.
Rising raw material prices to the cost of titanium dioxide enterprises have brought pressure on the market supply exceeds demand, titanium dioxide leading enterprises have laid out the upstream to reduce the impact of rising market prices of raw materials caused by the cost.
Supply and demand are improving, corporate performance and share prices are flying together.
In addition to the cost side of the support, the supply and demand side of the support is the continued rise in the price of titanium dioxide has played a role in boosting.
In the first half of 2020, affected by the epidemic, the domestic demand for titanium dioxide is not as expected. Weak demand in foreign markets, export trade suffered a large impact, resulting in low titanium dioxide prices. Some producers suffered losses and active production cuts, and the supply side contracted leading to tight spot.
From the second half of 2020, domestic demand gradually rebounded, more low-priced export orders, titanium dioxide prices began a round after round of price increases.
The downstream demand is strong so that the spot supply of titanium dioxide market from last year's November began to show the overall tension, and continued until now. In the situation where the supply of products exceeds the demand, the enterprise order quantity is sufficient. Cost support combined with good supply and demand, so that the price of titanium dioxide rose again and again, the company's performance and share price also followed the water up.
Titanium concentrate continues to move up, titanium dioxide bullish after the market.
With the Spring Festival holiday away, the gradual recovery of logistics, channel inventory or a small relief, but the effect is limited, the supply side still maintains a high-intensity shortage of goods. In the short term, the supply side still remains strong to enforce the rise, most producers offer firm prices, and need to line up orders and other goods.
