Last week, five major titanium dioxide companies in China adjusted their price by 500 Yuan/MT in the domestic market, and increased by 50 to 80 USD/MT for the overseas market. The price adjustment has attracted much attention in the TiO2 market and the related industry.
According the experts, there are two main reasons that cause the price rise, the growing demand of overseas market, and the chinese environmental policies.
In China, many chemical factories are using sulphuric acid in their production process of the titanium dioxide, which uses ferrotitanium powder and concentrated sulfuric acid to generate titanium sulfate solution through acidolysis and then produces titanic hydroxide through hydrolysis, and makes the final titanium dioxide products after calcining and smashing.
However, the sulphuric acid manufacturing technique is quite backward and has various disadvantages, such as the low producction efficiency and pollution to the environment.
In June, many local governments in China have implemented new environment protection policies. And the environmental protection committee of Hebei province has carried out a comprehensive investigation for companies which produce, use, store, and sell industrial acids. Therefore, many factories have been closed down or suspended production, and the production of titanium dioxide is much reduced compared with that of before.
And at the same time, the demand from foreign market remains stable and the TiO2 export is in a good status. As a result, the market demand may exceed the supply, and the price will rise accordingly.
But according to analysts, the price rise of TiO2 will be limited due to the decreasing downstream needs which are also affected by the environmental protection policy. For example, the paint industry is also subject to the supervision, and may face the possibility of suspending production. Therefore, these factories may reduce their demand of titanium dioxide.