With the decline in titanium dioxide output in June and the rise in cost-side prices, the titanium dioxide market gradually stopped falling and stabilized at the end of the month; entering July, some market participants believed that prices had reached bottom and market demand for stocking increased, thus alleviating some market pressure, but raw material prices maintained an upward trend, titanium dioxide production pressure continued to increase, and titanium dioxide market prices remained firm and stable.
High raw material costs rise
Titanium oxide: In 2024, titanium oxide prices will maintain a high upward trend. In the second quarter, titanium oxide prices will rise to nearly three-year highs. As of mid-July, the Panxi titanium oxide price index was 2,397.50, 106.25 higher than the beginning of the year, compared with the first half of the year. The market high point in the first half of the year only dropped to around 20. The price of the Panxi factory remained stable in the third quarter. The price of small and medium-sized titanium oxides remained high due to the shortage of raw materials.
Sulfuric acid: In 2024, the price trend of sulfuric acid shows a slight upward trend, and the price trend has stabilized compared with the past three years. In the second quarter, driven by the increase in demand from other industries such as phosphate fertilizers, the price of sulfuric acid continued to rise. As of mid-July, the price index of sulfuric acid was 432.15, 132.15 higher than the beginning of the year, and still 45.04 higher than the market high in the first half of the year; At present, the sulfuric acid price index has risen to this year's high, and the trend continues to maintain an upward trend. The price of sulfuric acid in the second half of the year may be higher than the price in the previous two years.
Rising titanium dioxide prices are under pressure
Looking at the trend of the titanium dioxide price index, raw material prices have maintained an upward trend, while the titanium dioxide index has gradually declined to a low in the past three years. As of mid-July, the titanium dioxide price index was at 15,507.72, a decrease of 350.20 compared with the beginning of the year. Compared with the market high in the first half of the year, the decline was about 1300.
In July, some enterprises in the market were under maintenance, and some enterprises 'maintenance plans were delayed until August. The market supply increase in the short term is limited. Although the cost is high, due to the increase in demand and supply, the price of titanium dioxide is still under pressure in the second half of the year.
Table of maintenance status of titanium dioxide enterprises in July:
Pressure on titanium dioxide exports intensifies
The European Union announced on July 11 that it will implement the preliminary anti-dumping duty rate, with a tentative implementation time of six months. Faced with the impact of high exchange rates and increased sea freight rates, this increase in the tax rate further aggravates the price pressure on titanium dioxide exports; while Europe is the main export concentration of domestic titanium dioxide, after the announcement of the preliminary anti-dumping duty rate, export orders from titanium dioxide companies began to weaken, and domestic companies are also actively responding to the lawsuit. It is reported that under the influence of tax rates, Longbai Group and other companies have decided to resell their exports to Europe to other countries; and in the second half of the year, China's titanium dioxide market is expected to be put into production and released. With the continuous expansion, as the proportion of global production capacity continues to increase, exports will surely become an important path to increase domestic titanium dioxide production capacity. Although export pressure will increase significantly in the short term, the titanium dioxide export market will still maintain a growth trend in the long run.
Statistical table of new production capacity in the titanium dioxide market in the second half of 2024:
