Titanium dioxide: market summary in the first half of 2022

1、 Market Overview

In the first quarter of 2022, the market price of titanium dioxide fluctuated upward, with an increase of about 4%. The price of anatase titanium dioxide rose by about 2% at the end of the season. From January to March, the domestic and foreign markets sent continuous letters to increase, driving the market atmosphere to improve. In addition, the prices of raw materials titanium ore and sulfuric acid rose, and the cost support of titanium dioxide prices was strong. In the second quarter, the market price of titanium dioxide was weak, and the price of rutile titanium dioxide at the end of the quarter fell by 850 yuan / ton compared with that at the beginning of the quarter. The price of anatase titanium dioxide at the end of the season has decreased by 400 yuan / ton compared with that at the beginning of the season. From April to may, the epidemic struck in many places in China, making it difficult for enterprises to deliver goods and transport. Titanium dioxide manufacturers reduced production and stopped production, and the market began to decline; In June, the market entered the off-season, the price of raw materials continued to decline, the demand of the downstream market decreased, and the inventory of small and medium-sized enterprises increased. Titanium dioxide enterprises were under great pressure, and the market prices were gradually adjusted, some of which were close to the cost line.

2、 Production and operation

According to statistics, the cumulative output of titanium dioxide in China from January to may 2022 was about 1.7214 million tons, an increase of 8.6% over the same period last year, and the output increased by about 136300 tons. In March, the titanium dioxide market was affected by public health events. Many manufacturers reduced production and production, and the market started to decline. In April, some titanium dioxide enterprises reduced production, and the output of most enterprises decreased. The output gradually recovered from May to June. It is expected that the output of titanium dioxide in the third quarter will be the same as that in the second quarter.

3、 Export analysis

According to the customs data, the cumulative export volume of titanium dioxide from January to may 2022 was about 622300 tons, with a year-on-year increase of 15.24%, and the export volume increased by about 82300 tons. From January to may, the top three countries for titanium dioxide export are India, Belgium and Brazil, accounting for 12%, 7% and 6% respectively.

4、 Terminal real estate industry

In the first half of 2022, the capital pressure of enterprises remained unabated, and the market adjustment continued, and the enthusiasm of real estate enterprises for new construction was insufficient. From January to may 2022, the new construction area of houses nationwide was 520million square meters, a year-on-year decrease of 30.6%. The national housing construction area was 8.32 billion square meters, a year-on-year decrease of 1.0%. The completed area of houses was 230million square meters, a year-on-year decrease of 15.3%.

5、 Future prediction

On the supply side, it is understood that some large enterprises were overhauled in July, and the current inventory level is basically about 20-30 days, and some enterprises are about 1.4 months. At the same time, the market has also released new production capacity of enterprises, and the pressure of enterprises is still large. The recovery of downstream market demand is less than expected, and the terminal cost pressure is greater. With the support of the cost side, the low-level downward space of titanium dioxide has been limited. Most manufacturers are waiting for the latest price policy of Longqi in July. The current actual order price is a single discussion based on the order, quantity and payment form. It is expected that the short-term titanium dioxide market will be weak and rebound in September.