Since the end of the Spring Festival, the price of titanium dioxide has soared. The price of anatase products rose by RMB 1,000/ton at the beginning of February, and rutile followed by a rise of RMB 500-800/ton in mid-February. However, this is only the beginning. In the last few days of February, the major rutile and anatase manufacturers launched a price hike in March, ranging from 500-1000 yuan/ton. In accordance with these trends, the domestic price of domestic sulphuric acid rutile products has exceeded the threshold of 20,000 yuan / ton just around the corner.
The price situation has changed so fast that many people are entangled and confused. I don’t know why? Here's a quick analysis of the reasons for the price increase:
First, the price of raw materials
The main raw materials of titanium dioxide are: titanium ore (high titanium slag), sulfuric acid. Other auxiliary materials: water, electricity, steam, coal, etc.
Since January 2011, the price of titanium ore with a grade of about 47% has risen from 900 yuan/ton (excluding ex-factory price) to 1,100 yuan/ton (excluding ex-factory price) and there is a trend and demand for further increase. This and the cost of calculating a single ton of titanium dioxide ore increased by about 500 yuan.
The price of high-titanium slag products has increased from around 3,700 yuan/ton to about 4,500 yuan/ton. According to this calculation, the use of high-titanium slag for production, the cost per ton of titanium dioxide increased by about 1,000 yuan.
Sulfuric acid has been greatly affected by the international market. Since February, the national sulfuric acid price has been rising all the time. 98 sulfuric acid is based on the price of February 15th. The price in North China is 750 yuan/ton, northeast is 700 yuan/ton, and East China is 650-700. Yuan / ton, 700 yuan in Central China. And there are areas where prices are rising further. This price is the highest price level in 2010.
Second, inflation
The 2010 annual inflation index issued by the National Bureau of Statistics is 4.7, and according to foreign media statistics, this value should be above 10. And the trend of inflation in 2011 was even stronger than in the previous year. What is brought about is the rise in the overall price level of the country.
Third, the monetary tightening:
In 2011, the National Central Bank announced on January 14 and February 18 that the bank deposit reserve ratio was raised by 0.5 percentage points. In order to effectively curb inflation, the central bank requires major banks to recover liquidity and reduce the scale of loans. As a result, corporate loans with poor capital conditions are more difficult, and even loans are not available, making companies need to pay higher financing costs.
Fourth, the supply of slag in titanium dioxide is tight:
According to the scale of China's titanium dioxide factory, the estimated production capacity in 2011 is 2.3 million tons. In 2010, the actual output was 1,474,286 tons, so the production in 2011 is expected to be more than 1.6 million tons according to the 70% operating rate. If you calculate the ratio of 2.5 tons of titanium ore in one ton of titanium dioxide, you need at least 400. Ten thousand tons of titanium concentrate. The production capacity of China's titanium concentrates does not exceed 2.1 million tons, and at least 2 million tons must be imported from abroad. In 2010, the import volume of titanium concentrates was 2,039,500 tons. The main source countries, Vietnam and India, have imposed restrictions on titanium ore exports or stricter quota controls since the end of 2010. The supply of titanium concentrate is certain, and it is impossible to open up more mines in a short time. Compared with the scale of imports in 2010, the operating rate of the factory is only 70%.
As the country pays more and more attention to environmental protection, titanium dioxide, as a “one capital and two high” industry, is suffering from this growing environmental pressure. Titanium dioxide companies are also actively looking for solutions. For some new factories and companies far from the source, relatively more environmentally friendly high-titanium slag is used as the raw material for titanium dioxide. However, China's high-titanium slag industry started relatively late. It is estimated that the domestic production of high-titanium slag will be about 550,000 tons in 2011, and even this amount is only about 350,000 tons for the production of titanium dioxide, and these quantities cannot be used for production. Titanium dioxide. In the major rutile producers near the coast and ports, their high-titanium slag was mainly supported by imports. With the monopoly of major mining giants on mining (such as Rio Tinto, BHP Billiton, etc.) plus the 100-year-old flood that occurred in Australia, the main source of high-titanium slag since 2011, it has seriously affected the supply of high-titanium slag. At the same time as the mineral resources are tight, it is bound to drive the price of imported ore.
Fifth, the international titanium dioxide price rose
Since January 1, 2011, the world's major titanium dioxide giants have raised the price of their titanium dioxide products: DuPont raised 200 US dollars / ton, Huntsman raised 200 US dollars / ton, Germany Connors raised 200 US dollars / Tons, etc., the increase in other factories is similar. Not only that, DuPont announced on February 15 that it will raise the price again by US$300/ton from April 1, 2011.
Such intensive and substantial price adjustments have greatly stimulated foreign buyers, turning them into China, which has become the world's largest producer of titanium dioxide, making China's export business once again hot.
