Market Analysis
Entering May, titanium dioxide mainstream prices stay steady at a high level, and there are still market talks of further price increases.Yet the real market trend still needs to be watched closely. At the supply end, manufacturers are mainly delivering old pending orders, while new price offers and new orders are quite limited.This is because the previous round of rapid price rises pulled forward market demand, and new orders naturally dropped ahead of the traditional off-season.Most old order deliveries will last until mid and late May. At present, producers keep relatively low inventory. If new orders stay weak, inventory may start to build up from late May to early June.If new orders improve instead, producers cannot pile up inventory, and prices will stay firm at high levels with only small room for further rises.
From the above analysis, price drops are not likely for now. The two trends match the current situation of two types of manufacturers.
The first type are large leading producers with sufficient pending orders. They keep prices firm with no adjustment plan, and their orders are mainly supported by foreign trade business.The second type face poor new orders and weaker foreign trade performance, leading to rising inventory. Some of them are ready to accept flexible pricing. All manufacturers are under the same big pressure: sulfur and sulfuric acid prices keep going up, pushing production costs higher. There is little room to cut prices, which is the main reason price drops are unlikely.
Still, some producers want to raise prices while others prefer stable prices, which will widen price gaps gradually. Eventually high prices may face pressure to ease back. The market changes dynamically, and suppliers will adjust their strategies according to actual market conditions.
Besides, most distributors have finished selling off their stocks purchased at old low prices, and this factor has little impact on the market now. The whole industry is facing fewer new downstream orders. This May will see overall reduced trading volume in the whole market.
Market Future Outlook
The market is likely to stay strong in May in the overall trend.Further price increases and steady prices may both occur at the same time.The actual deal price is negotiated case by case, depending on order quantity and payment terms.
