Titanium Dioxide Price Outlook
Entering the middle of February, the titanium dioxide price market is in a period of stability after being firm. All manufacturers mainly maintain the favorable situation before and after the Spring Festival, and the manufacturers have generally increased by 200-300 yuan/ton. During the Spring Festival, most domestic manufacturers maintained normal production in order to alleviate the tight supply situation in the early stage. The current supply situation is slightly better than the previous period. The supply side is more optimistic about the future market and is willing to continue to increase. However, some market participants are pessimistic about the future market based on the current demand situation and have the view of maintaining stable operation.
The Lantern Festival has passed, and the operating rate of the downstream has increased but not as expected. Judging from the recent order situation, it is still not very optimistic. There are two main reasons: First, those who prepared before the festival mostly digested the inventory after the festival and took a wait-and-see attitude towards the market. In other words, they overdrew some of the demand after the festival before the festival; second, due to the scarcity of their own orders, the downstream resumption of work after the festival was relatively slow, and they had no intention of purchasing raw materials, and their operating rate needs to be improved. Downstream users have a big characteristic: the larger the amount used, the more cautious they are, and they often increase the frequency of purchases and reduce the amount of single purchases.
As the weather warms up, not only the domestic, but also the global economy and downstream demand may increase significantly, and the demand market may have new growth points, so we still have to remain optimistic. In contrast, in the domestic market, although manufacturers have the intention to continue to increase prices and impact higher prices, it still depends on the manufacturers' inventory and demand support.
