Titanium Dioxide Market Trend Depends on Large Enterprises
In the early December, titanium dioxide market demand atmosphere is not very satisfactory, mainstream prices remain low and firm, the vast majority of producers to grasp orders, shipments, collections, only a few producers due to the spot is very tight, the terminal transaction prices have been adjusted upward.
Production rates of titanium dioxide producers have increased, mainly to meet the immediate needs of existing customers, so the demand for titanium ore increased slightly. Moreover, the supply of titanium ore in the Chengde and Panxi regions was still in a shortage, so the price of the main raw material, titanium concentrate, was firm and upward. Despite this, titanium dioxide producers still need to purchase or stock up. Huge cost pressure against weak downstream demand, the supply side of the desire to rise stronger, but most dare not easily change prices. So in this situation, many producers are stable operation, quietly watching the change in prices of large producers. In fact, the market line to this, both miners, or titanium dioxide producers hope that the market can be better. Miners are also using the price of ore to support the cost of titanium dioxide, so that the upstream and downstream form a temporary stable bottom line.
At the end of the year, more people are concerned about the price trend in December and next January. There are only three options for the market trend: up, down and stable. Based on the current price level and production costs, it is less likely to continue to fall, and the short-term market can be temporarily predicted from the two options of stable and up. In fact, the current end-user can be assured that the purchase, the goods bought will probably not depreciate, just not necessarily appreciate, the worst result is to "keep the value", which is also reasonable.
The market is stable at the moment, mainly because the large producers have not given a clear price direction, and for the December price quotation can be stable, can be increased, which are sufficient conditions. It is also possible that, similar to Chemours, a new price policy will be implemented from 1 January 2023. In the long term, the market may start 2023 with a period of high recovery, followed by a gradual return to normal levels. To sum up, there are short-term fluctuations, long-term positive.
