In 2016, the price of titanium dioxide was always on the way. After 13 consecutive surges, it rose from 10,900 yuan/ton in early January to 15,300 yuan/ton in late December, an increase of 40.36%, and nearly 5,000 yuan per ton. Some manufacturers increased their performance more than once. If Guangdong Huiyun conducts four price increases, Titanium Technologies has conducted three price adjustments within one month. In January of this year, the market price of titanium dioxide rose again. The average price at the beginning of the month was RMB 15,970/ton, and the average price at the end of the month was RMB 16,770/ton (including tax), an increase of 5.01%.
According to industry insiders, due to shrinking supply and rapid growth in overseas demand, the titanium dioxide industry has entered a price increase cycle. A series of recent events led to a shortage of titanium dioxide supply: 1. An international giant Huntsman Finnish Pori titanium factory fire broke out on January 30th. There is a total production capacity of 130,000 tons of titanium dioxide, equivalent to 10% of Europe's total demand. 2. Due to environmental protection, the production of titanium dioxide in the Panzhihua Hi-tech Park was suspended due to environmental protection. The production shutdown involved production capacity of approximately 360,000 tons, accounting for approximately 10% of the current titanium dioxide production capacity in China.
In addition, the “Limiting Load Order†raises the transportation production cost, and the “business increase†increases the business tax. In addition, the 17-year environmental protection inspection will become increasingly stringent. The improvement of product quality and specificity will increase the reasonable increase of raw materials, labor, and various With the increase in cost, the overall cost of titanium dioxide in 2017 will increase by about 20%.
Summary: Affected by many factors, it is expected that the market price of titanium dioxide will rise by about 5% before March.
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