TiO2 Price May Rise in the Market Outlook
In mid-July, the mainstream titanium dioxide price is still in a stable period. But due to the current low price level and the continued strong prices of raw materials titanium concentrate and sulfuric acid, most manufacturers are under great production pressure. More and more manufacturers are gradually choosing to limit production or stop production, and the overall market supply has dropped significantly. There are two obvious characteristics in the trading market: first, some manufacturers such as Titanium Sea have announced price increases and have increased by 200-600 yuan/ton; second, some manufacturers or some brands of some manufacturers have already queued for shipment and waiting for goods.
On the other hand, as some end users gradually begin to place orders based on the current market conditions, the actual order volume has increased recently, and rigid demand and elastic demand are gradually increasing. From this point of view, the market demand still exists, but they are just watching the market.
In addition, based on the judgment and grasp of the market conditions, some channel dealers have begun to stock up, which has prevented manufacturers from establishing inventory positions, and also strengthened the confidence of manufacturers to maintain prices.
From the analysis of the current price market situation, whether from the perspective of raw material costs or from the perspective of their own production and inventory, manufacturers generally have a desire for price increases. They believe that when the supply is tight to a certain extent, they can ignore the demand and the strong bullish cycle on the supply side will begin. Focusing on the period from the end of July to the beginning of August, there may be two situations: first, the main large manufacturers lead the increase and other manufacturers follow; second, other manufacturers announce large-scale price increases, and the main large manufacturers are eventually "forced" to increase prices.
