China Titanium Dioxide Industry Usher into Fresh Gains, Prices to Remain High Even in Q3 2021
- 25-Jun-2021 3:00 PM
- Journalist: Harold Finch
China’s Titanium Dioxide (TiO2) industry is maintaining bullishness across the globe with manufacturers optimistic about strong demand from the downstream coatings producers and high export potential.
For the sixth time in this year, China’s largest Titanium Dioxide producer, Lomon Billions has announced another increment in Titanium Dioxide pricing with the new increment effective from July 1, 2021. The company announced price revision for almost all types of its Titanium Dioxide products. According to ChemAnalyst pricing data, FOB Qingdao price of Rutile grade Titanium Dioxide has shown a spike from $2350/mt in January to $2960/mt in mid-June. As per market players, increasing price of Titanium concentrate and Sulphuric Acid has maintained the upward pressure in the overall price trend. Although prices have started showing some stability in June, they are still at their record highs.
As per market experts, continuous increase in the prices of Titanium Dioxide is buoyed by strong demand from the real estate and automobile sectors. Acute tightness in supplies from the overseas manufacturers has increased China’s exports and pressurized the inventory levels of several Chinese producers. Raw materials, Sulphuric Acid and Titanium concentrate are resolutely high which has prompted foreign giants to further raise their prices even in July.
Increasing price for Titanium Dioxide has caused an increase in the input cost of downstream coatings, paints, paper and plastic industries. To beat abrupt inflation in the input costs, leading paints and coating companies such as Nippon and Asian Paints have increased their offers for the month of June. Currently, downstream players are operating at high rates but cost inflation has reduced the profit margins of several coating companies. Paint companies have no choice but to pass on the increases to the end consumers. It is estimated that China’s TiO2 exports are likely to further boost in the third quarter and prices for Rutile-TiO2 are likely to rise above $2980/mt in June.