Due to the tight supply of European titanium dioxide, the price of TiO2 are largely rising in the first quarter. There has shown rises of €70-125/tonne across a few sectors last week. The limited supply demand and the producers’ low stock led to a rise in prices. Buyers who have large stock volume is likely to mitigate the pressure on supply. But some buyers turned to import from Asian or sign long term contracts with certain volumes in order to mitigate the pressure.
The recent snow and ice direct or indirect stymies demand, logistics issues still continued, the tight supply and healthy demand continue to pressure the North American and global pigment market.
The appreciation of RMB may support Chinese export prices. According to Chinese titanium dioxide market, titanium dioxide spot prices were still stable and rising. Affected by the strengthening of the Chinese yuan against the US dollar, the price is likely to rise again.
According to the survey and statistics of the vanadium titanium industry association of Panzhihua, the production of titanium products in Panzhihua was greatly increased in 2017. The production capacity of titanium dioxide is about 25% of the total capacity of China. Output is expected to be 467 thousand and 850 tons. In 2017, the production of titanium dioxide in Panzhihua area increased by more than 30%. According to the latest news from Lomon Billions, due to the new production capacity of titanium dioxide is limited, sales are expected to increase after the Chinese traditional Spring Festival. It is expected that the short term market supply and demand balance is difficult to break.