Titanium Market Analysis of October
Titanium Ores
During the month of October, the Titanium ores prices have been steadily increasing their prices. On average the prices have increased about 300 RMB/ton. There are several reasons that caused the price increase: During the national holidays break at the beginning of the month, Xichang enterprise reduced production for equipment inspection and maintenance. Panxi region road construction have slowed the transportation of raw materials and put strains on logistics. Fengyuanwei warehouses also came under maintenance, lowering supplies. Titanium dioxide prices increase has also lead the increase of the prices. Since we are nearing the end of the year, downstream shall act with caution since many factories have plans for overhauls.
The import markets for Titanium ores have also increased cost due to reasons such as the pandemic. Including Vietnam and Australian ores have all seen 25 USD/Ton increase from this month, some suppliers have unable have stopped quoting due to shortage in materials. Imports of Titanium ores have increased in China, Vietnam ore import have increased. Crude ores imports in the Chinese market have increased but also with higher demand from downstream. Domestic prices increase will cause the prices to be high in the near future.
Acid residue slag prices have also increased in the month of October, Yunnan province products have incrased to 4,700-4,800 RMB/ton, Sichuan products have incrased to 4,950-5,100. Because of the raw materials cost incrased the slag prices increased as well. Part of the slag production have converted to acid residue slag, the price will remain consistent.
Titanium slag prices have remained consistent, Yunnan area prices have increased by 200 RMB, however Jinzhou area Slag have decreased by 50 RMB. The reason for the price decrease is likely due to the pressure from competition. Since the demand have decreased slightly this caused a surplus in upstream stock. Downstream prices remain unprofitable for some. Raw materials have increased and slag prices are seeing pressure as a result. Due to the lowering demand, different enterprises have the desire to increase their prices. Titanium Slag prices will bounce back as a result.
Titanium Tetrachloride prices have also increased as seen in multiple notifications of price increase. Prices from Henan region have increased by around 800 RMB/Ton. Current market prices are around 5,800-5,950RMB/ton. Raw materials prices such as liquid chlorine have kept the prices high.
Titanium dioxide prices have increased twice in the month of October; dozens of enterprises have sent notifications about their price increase. Main reason for increase in price is because of the raw material cost increase. Rutile products are at 14,000-16,000 RMB/Ton whereas Anatase is at 12,000-12,800RMB/ton. Titanium ore prices increased by 350RMB on average caused the increase in prices for Titanium Dioxide. According to TDD data, export quantity for Titanium Dioxide for Q3 have mounted to a total of 150,000 tons. With the price increase the downstream are stocking products. Export market is also severely impacted by the coronavirus and facing uncertainties. However current stocks are able to keep the prices stable.
Lonmon Billions have increased their prices for 2,000 tons/ton. Current market prices face uncertainties and is likely to increase in the near future. The reasons being that Titanium Tetrachloride prices have increased, and the orders from different industries such as aerospace and military have kept the demand very high.
