Rising costs Many titanium dioxide companies raised prices to reduce pressure

On November 14, titanium dioxide supplier Zhongnuo Titanium Dioxide issued a price adjustment announcement for its main products, saying that the sales price
of various models of titanium dioxide of the company will be fully increased from now on.
Among them: the sales price of domestic customers was increased by 800 yuan / ton, and the sales price of international customers was increased by 100 US dollars / ton
.

In fact, recently, many titanium dioxide suppliers such as Gimpo Titanium have issued price adjustment announcements, and the price increase is basically consistent
.
Several companies have said that they will closely track the price trend and supply and demand changes in the international and domestic markets of titanium dioxide, and timely do a good job in adjusting the price of titanium dioxide products
.

A number of analysts interviewed by the "Securities Daily" reporter said that the recent collective increase of titanium dioxide suppliers is closely related to the high cost, and whether the future company can achieve better profit performance depends on the growth of
downstream market demand.

For the recent collective price increase of titanium dioxide manufacturers, Ye Yindan, a researcher at the Bank of China Research Institute, believes that it is mainly related
to the recent high cost and recovery of demand.

Ye Yindan said that from the cost side, the price of titanium concentrate and sulfuric acid, the main raw materials in the upstream, led to a decline in the gross profit margin of titanium dioxide products, which in turn affected the profitability of enterprises, which is the direct reason
for promoting the collective price adjustment of titanium dioxide suppliers.

According to data from business agencies, the reference price of industrial grade sulfuric acid on November 14 was 346 yuan / ton, up 51.
75% from the lowest point of 228 yuan / ton on September 14; The reference price of titanium concentrate on November 14 was 2100 yuan / ton, up 4.
22%
from the lowest point of the year in 2015 yuan / ton on October 11.

"In addition, with the market demand expectation has risen, titanium dioxide suppliers have played a certain role in promoting product prices
.
" Ye Yindan said
.

It is worth noting that a number of titanium dioxide companies that announced price adjustments mentioned in the announcement that the adjustment of product prices will have a positive impact
on the company's overall performance improvement.

Driven by the news of the price increase, the valuation of the A-share titanium dioxide sector also ushered in a slight increase
.
Choice data shows that as of the close of November 14, the A-share market titanium dioxide (classified by Shenwan industry) sector index reported 800.
10 points, up 2.
97% on the day; Extending the timeline, the above index has fallen by 8.
25%
since the second half of the year.

Looking at the price of titanium dioxide during the year, it can be seen that the high downward trend is very obvious
.
Data show that in the first half of this year, the price of titanium dioxide has always remained at a historical high of 20450 yuan / ton to 21100 yuan / ton, and fell rapidly in the second half of the year, and as of November 14, it has fallen to the historical middle and lower level
.

Sun Wenjing, an analyst at Zhuochuang Information, told the "Securities Daily" reporter that the price of titanium dioxide has continued to fall since the summer, which is closely related
to the supply and demand pattern of oversupply.
Since the second half of the year, the sentiment of weak downstream demand for titanium dioxide has been transmitted upward, and the shipment pressure of high inventory manufacturers has increased, and the frequent transaction of low-price bidding orders has also made it difficult for market prices to maintain a high level
.

So, what kind of trajectory will the price of titanium dioxide show in the future? Qin Liang, a senior investment consultant at East High-tech, told the "Securities Daily" reporter that at present, whether the price of titanium dioxide can stabilize and rebound depends on the demand side
.

Sun Wenjing believes that in the short term, after the collective price increase of titanium dioxide enterprises, the market price will rise, but subject to weak demand, the market is still dominated by price stability
.
In the long run, the support of market demand needs to be tested, the industry supply still has new production capacity to land, and the price expectation may remain weak
.

"Of course, we should also see change
.
Since the beginning of this year, the policy of stabilizing real estate has been frequent, which is beneficial to the coating industry, and the demand for titanium dioxide will increase
.
However, to change the current and future supply and demand pattern of titanium dioxide, greater changes in supply and demand are still needed to achieve
.
Sun Wenjing said
.