Concerned about the price of titanium dioxide

Concerned about the price of titanium dioxide Recently, Connors announced that it will increase the price of all titanium dioxide products sold in Europe, Asia Pacific, Latin America, the Middle East, and Africa from June 1, 2013. Among them, the lowest price increase in Western Europe and Turkey is 200 EUR/tonne; the price increase in North America is 10 cents/lb; and the price increase in Eastern Europe, North America, and Europe is 250 USD/tonne. This is Connors' second price increase this year, mainly due to the strong recovery of the US real estate market and rapid growth in demand for paints and coatings. Previously, on March 1st, Connors had raised the price of titanium dioxide 250 US dollars/ton outside North America and Europe, intended to stop the downward trend in the price of titanium dioxide.

However, in the past year, the price of titanium dioxide in China fell from 20,000 yuan/ton to the current 16,000 yuan/ton, and the enterprises are basically in the state of cost pricing. The industry operating rate is generally insufficient. Mainly because of the low concentration of domestic titanium dioxide industry, many small businesses, in a more disorderly competition. Although the price difference between domestic and foreign products is relatively large, due to the difference in product quality and positioning, it is difficult to increase market share through low prices. According to the customs export data, although Konnos raised its product price in March, the unit price of titanium dioxide imported and the unit price for export were US$2,633/tonne and US$2,470/tonne respectively, which was US$148/tonne lower than the price in January. $81/ton. This shows that it takes time for the international giants to raise the price to China, and the effect remains to be seen.

We believe that this international giant's price increase is conducive to the gradual stabilization of the domestic price of titanium dioxide, which is conducive to the export of the company. However, before the industry to achieve capacity-building, the turning point of the entire industry is still too early to say that the plate has only trading opportunities.

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