Since 2024, due to the weaker-than-expected global economic recovery, especially weak demand in Europe, the United States and other developed economies, China's export-oriented industrial product prices have come under pressure. In the post-epidemic era, China's economy has also entered a complex recovery stage, with the moderate recovery of consumer demand and industrial production out of sync with the downward pressure. China's titanium dioxide industry is also in the doldrums and weak situation.
Throughout the 2024 titanium dioxide market, there has been a rise and fall of the word "Ω" in the first three quarters. On the whole, the current price is 1800 yuan / ton lower than that of the same period last year. And the price of titanium dioxide is coming to an end in September this year, and the price of titanium dioxide is still showing a weak trend, breaking the traditional concept of gold, silver and silver in the peak season, and there are many negative factors in the market, mainly as follows: 1. The economic pressure is great, and the real estate industry is weak. Paint, paper and other demand shrinks; 2, downstream underemployment, enterprises basically have no stock demand, strong bearish sentiment 3. Under the influence of EU anti-dumping duties, the export pressure of titanium dioxide increases and the price competition pressure is great. 4, the prices of raw materials ilmenite and sulfuric acid are lower, and the cost of titanium dioxide is downward.
This month, titanium dioxide enterprises delivered more on-hand orders signed from July to August, while the new orders in October were weak, and downstream enterprises had no willingness to prepare goods for the time being. coupled with the re-negotiation of order prices by large terminal enterprises, market sentiment weakened and manufacturers' inventories gradually increased. Some small and medium-sized factories' new order prices have been reduced by 100-200 yuan / ton one after another, although the foreign trade prices of dragon enterprises have increased by 100 US dollars / ton at the beginning of the month, but the Chinese market is still in the doldrums.
According to Tuduoduo data, the total output of titanium dioxide in China from January to August in 2024 was about 3.1832 million tons, an increase of 19.67 percent over the same period last year, and the output increased by more than 520000 tons. The new production capacity enterprises in the market this year are mainly Inner Mongolia City, Guangxi Youcan, medium Nuclear Titanium dioxide (Gansu Baiyin), and so on. As can be seen from the following figure, monthly output from January to August has different increases compared with last year, and titanium dioxide enterprises mostly maintain high start-up operation.
According to customs data, the cumulative export volume of titanium dioxide from January to August in 2024 was 1.2929 million tons, an increase of 16.52 percent over the same period last year, and the export volume increased by about 183300 tons. Although most manufacturers withdraw from the European market and resell to Southeast Asia, the Middle East and other countries, the overall export data of titanium dioxide this year is good, the international market demand is still relatively strong, and the foreign trade orders of some manufacturers are still good.
The cumulative consumption of titanium dioxide in China this year is about 1.954 million tons, which is 1.5998 million tons higher than that in the same period in 2023, an increase of 22.14%. As can be seen from the chart, China's titanium dioxide consumption still increased to a certain extent this year, and the growth was mainly concentrated in the first half of the year. Off-season titanium dioxide consumption in the June-July market decreased compared with the previous period, but the trend also showed a pick-up trend.
In September, only a few enterprises reduced production and stopped production, but the overall start-up of the market was still high and the supply of goods was sufficient. Although the prices of raw materials ilmenite and sulfuric acid have fallen somewhat, the price of titanium dioxide has also declined, and the production pressure of enterprises is still greater, individual enterprises may have lost money, and in addition, the market has entered the off-season in the fourth quarter, expressing pessimism about the market. Some enterprises have adjusted the new order prices in October one after another, individual enterprises have made price assurance measures, coupled with the enterprise maintenance plan in October, the market wait-and-see mood is still strong.
At present, the international environment is becoming more complex and severe, unstable, uncertain, and unpredictable factors are increasing, insufficient Chinese demand, etc., coupled with the impact of events such as Fed interest rate cuts, RMB appreciation and other issues, the operation of the titanium dioxide industry is still relatively difficult, and it is also unknown whether the price of titanium dioxide in October can be supported.
