Titanium Dioxide Market in China
In February 7th, Chinese leading producer of TiO2 pigments Lomon Billions announced the price increase. It was decided that from now on, the sale price of all kinds of titanium dioxide is up 500 yuan per ton for domestic customers on the basis of the original price; for international customers the chloride based titanium dioxide is up 200 US dollars per ton, and sulphate based titanium dioxide is up 150 US dollars per ton. There are some reasons for this time price hike:
1. The recent environmental output cuts and natural gas and other major energy prices rise, the company's leading products of titanium dioxide costs increased significantly;
2. The market demand is exuberant and the rapid decline in stocks;
3. The impact of the continuous appreciation of the strong Chinese yuan against the US dollar.
In February, the price market of titanium dioxide in China came to a wave of price adjustment. Nearly 20 manufacturers increased 500-1000 yuan per ton. Titanium dioxide industry insiders said that the international demand is vigorous, the Chinese environmental protection high pressure is not reduced, and low new capacity are the continuous boosters for the price rise of titanium dioxide industry.
After the Chinese Lunar New Year holiday (14 February to 21 February ), there will comes the production peak soon. It will also promote the sales enthusiasm of the titanium dioxide market. A consensus in the industry is that titanium dioxide will have a reasonable market until May this year.
Titanium Dioxide Market in Europe
The European titanium dioxide (TiO2) market is affected by delays and supply limitations in some cases this week. Due to less new production capacity in 2018, as well as high season expectations, this could lead to a firmer sentiment in Q2.
The capacity utilization of international giants has almost reached its limit, and the stock has declined gradually, in additional to over 20% enterprises in China are facing greater environmental pressure and the 85% start rate is almost the limit level, spot prices are holding relatively stable.
Buyers keep a close eye on Chinese market, but there are some delays in deliveries, lengthy lead times and supply constraints, depending on some sellers and for certain TiO2 grades.
With the peak demand for paints and coatings in spring may continue some tightening in the market. And some buyers recently has built stocks or import availability from China or seek alternatives.