Under the pressure of rising prices of energy and raw materials, titanium dioxide giants have shouted "up" recently.
On February 28, a price increase letter from titanium dioxide giant Kemu chemical showed that from April 1, all specifications of Ti pure titanium dioxide in Greater China will increase by $200 / ton. Just a few days ago, tenor chemical, Connors and fannengtuo also announced price increases from April 1.
Titanium dioxide concept index rose 1.11% today after rising 3.82% yesterday, according to China stock market news choice. Among them, the cumulative increase in Anhui Annada Titanium Industry Co.Ltd(002136) two days was 13.88%, and the increase in Gpro Titanium Industry Co.Ltd(000545) two days was also more than 6%.
"The market sentiment of this wave of price rise is brought up by foreign suppliers. An important factor in its price rise is cost pressure." Tian Xiaoyu, senior analyst of titanium dioxide at Zhuo Chuang information, told the Securities Daily that in March, the main raw materials of titanium dioxide such as titanium concentrate and sulfuric acid are still expected to rise, and the price of titanium dioxide is expected to rise.
conduction cost
price adjustment accurate to USD 5 / ton
In the current round of price increase of titanium dioxide giants, the price increase of Teno chemical is worthy of attention. Unlike KONOS, fannengtuo, Kemu chemical and other companies, which increased by 100 units, Teno chemical made it clear in the price increase letter: since April 1, the price of titanium dioxide will be increased by 150 euros / ton in the European market, and the price in the Middle East, Africa and Eastern Europe will be increased by 175 dollars / ton or 155 euros / ton.
"The differential increase in different markets means that there have been differences in demand growth in different regions of the global market." Tian Xiaoyu believes that "the cost pressure gives birth to the driving force of price rise. Most of them adjust the price in whole hundred units, and the price rise accurate to US $5 or 5 euros is rare. (Teno chemical) seriously transmits the cost pressure."
Recently, energy prices have fluctuated greatly. In terms of crude oil, Brent crude oil futures rose by more than 25% in the first two months of 2022, and American crude oil futures rose by about 27%. In terms of natural gas, on February 24, the European natural gas benchmark price TTF jumped by more than 50% to 132.71 euros / MWh, the highest since 2022.
"As highlighted in the profit statement for the fourth quarter of 2021, we are experiencing cost pressures on energy, chemical and other raw materials and freight, and we expect to continue to face these pressures throughout the second quarter of 2022. Therefore, it is necessary for us to take action to pass on higher costs." Tenor chemical made it clear.
previously adjusted price
Chinese enterprises are mainly on the sidelines
While the international titanium dioxide giants have raised prices one after another, Chinese enterprises are still mainly on the sidelines, and only individual enterprises such as Tianlun chemical announced price increases. On February 28, Tianlun chemical said that from now on, the price of titanium dioxide of TLA anatase and TLR rutile crude product (powder) will be increased by 600 yuan / ton in China and 150 US dollars / ton in foreign trade.
Zhuo Chuang information data show that in February, China's titanium dioxide market achieved an industry wide output of about 285600 tons, a month on month decrease of 8.64% and a year-on-year decrease of 2.70%. In terms of inventory, at present, the inventory level of major mainstream manufacturers is in the range of 10-25 days, and the inventory of manufacturers with a capacity of about 100000 tons / year is mostly concentrated in 5 Faw Jiefang Group Co.Ltd(000800) 0 tons. With the recovery of logistics after the Spring Festival, the delivery rhythm of domestic and foreign trade orders of the seller is accelerated, and the inventory is digested. It is expected that low inventory will provide positive support for the price.
Tian Xiaoyu believes that although affected by the sluggish consumption in terminal real estate and other industries, it has a certain pressure on the price rise. However, the supply side is expected to remain tight in March. Low inventory, multiple orders and strong cost support will still provide bottom support for the market, and short-term prices are easy to rise but difficult to fall. With the price adjustment of foreign suppliers in the second quarter, Chinese sellers had an expectation of rising in early March.
However, many Chinese enterprises have raised prices once after the Spring Festival, which also reduces the probability of continuing to raise prices this time. An executive of a titanium dioxide enterprise in Shandong told the Securities Daily, "we have also adjusted a price recently, in which the Chinese market has increased by 500 yuan / ton and the overseas market has increased by 100 US dollars / ton. After the adjustment, the price is basically the same as the current price of foreign enterprises."
"There is no price adjustment plan yet. In the future, we will pay close attention to the market situation and respond in time." The aforementioned titanium dioxide company said.
