Titanium concentrate falling for 21 days will push titanium dioxide down 30%
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The price of titanium concentrates rose from the level of around RMB 450/tonne in January 2016 to a high of about RMB 2,000/tonne in mid-April 2017, an increase of nearly 350%. However, this trend has been curbed since mid-April. The average price of titanium concentrate has dropped to about 1700 yuan / ton, and some small mines also do not sell this price. In just three weeks, titanium concentrates have fallen by 15%.
However, the decline in titanium concentrates appears. Titanium dioxide is used as a downstream enterprise of titanium concentrates. This round of high prices of titanium concentrates has dropped. Is it possible to cause titanium dioxide prices to fall?
Titanium dioxide demand is clearly declining
In the second quarter, the market of titanium dioxide and the paint market gradually showed a weak state. The monitoring of the paint industry was increasingly strengthened by the supervision of the environmental protection industry, resulting in the suspension of production of most small and medium-sized enterprises, which led to the obvious demand for the titanium dioxide market. decline. Since this year's domestic real estate regulatory policies have been frequently overweight, the market's demand for titanium dioxide has shown a downward trend.
Downstream companies are well stocked
As the price of titanium dioxide has risen for more than a year, downstream companies have been preparing goods. Large terminals have been stocked for 3 months, and small terminals have been available for more than half a year. The demand for titanium dioxide has further weakened.
Large companies begin to sell in disguise
It is reported that large companies have recently started selling in disguised forms through rebates and other means. If the big manufacturers officially open the mode of price reduction and shipping, the market may show retaliatory decline.
to sum up
Titanium concentrate market will continue to be in weak demand, prices continue to fall at high levels, while the demand for titanium dioxide is declining, the downstream stocking is sufficient, and large companies will disguise the price and other factors in shipments, which will continue to increase the trend of titanium dioxide powder, titanium dioxide or There was a 30% drop, which fell to 15,000 yuan/ton.
