Why is the Price of Titanium Dioxide Rising
According to industry insiders, the price increase of titanium dioxide is mainly due to rising costs and the gradual recovery of demand. Under the background that the coating operating rate is expected to bottom out, the demand for titanium dioxide will gradually increase.
In 2023, affected by multiple factors such as the release of new titanium dioxide production capacity and relatively tight titanium resources, the price of titanium dioxide will run at a high level. One of the main reasons for the price increase of titanium dioxide is that the output of mainstream titanium import source countries has dropped sharply this year. For example, Vietnamese titanium mines are affected by policies, and Ukrainian titanium mines are affected by the Ukrainian crisis, resulting in a sharp decrease in titanium dioxide imports. At the same time, more new production capacity of titanium dioxide has been released, and the supply of imported titanium ore is relatively tight. The price of domestic titanium concentrate rose in February compared with January, and the price of imported titanium ore remained firm; the market price of sulfuric acid mostly rose, and the acid price in Shandong, Sichuan, Yunnan, and Guangxi, the main producing areas of titanium dioxide, rose slightly. Under the influence of these two factors, the price of titanium ore this year will continue to run at a high level, thus supporting the upward trend of titanium dioxide prices.
From the perspective of demand, since February, downstream enterprises have started to work one after another, and the price hike at the beginning of the month has stimulated the enthusiasm of downstream companies to enter the market, the order volume has increased, and manufacturers' export orders are relatively good. The overall recovery of the economy can bring about a surge in demand from downstream customers for the titanium dioxide industry, and combined with price increases, it may bring about a recovery in business performance. The main downstream of titanium dioxide includes coatings, plastics, ink, paper and other industries. With the continuous introduction of various favorable policies and the recovery of the real estate market, the demand in the downstream market will accelerate recovery, which in turn will drive the demand for titanium dioxide and drive the price of titanium dioxide to continue to rise. At present, the mentality of titanium dioxide practitioners is positive. After entering the traditional peak season of demand in March, it is expected that the titanium dioxide market may continue its upward trend.
