Titanium white powder entered a stalemate consolidation phase

China Paint Network
: According to data show that in early June, the overall average price of
titanium dioxide
stabilized at a low level, to the domestic market shipment of large volume of gold-redstone titanium dioxide powder, for example, the price stabilized at 13354 yuan / ton. Industry experts also believe that the current price of titanium dioxide is rising, the actual increase is not so large, mainly to stabilize. It is expected that in the next two months, against the background of weak domestic trade demand and declining export volume, domestic supply pressure will increase, and the price of titanium dioxide powder may remain low.
Since mid-May, the titanium dioxide market is slightly weak, downstream customers only purchase to solve the just need, and increase the bargaining space or account period, coupled with Sichuan Longyu did not lead the market, so that the June market added some unknown feeling. June is the end of the second quarter, but also the first half of 2015 a key month, there is a rise in May Lido cumulative, do not exclude manufacturers and distributors in order to strive for the first half of the volume of business to increase promotional rebates.
titanium dioxide analysts believe that the market in June stabilized the opening, real deal or increase the negotiation space and accounting period, since May, the situation has slightly shrunk, but rush business, punch performance operations or frequency.
analysts believe that from June to August, the terminal real estate industry brought benefits will not be obvious for the time being. As summer approaches, titanium dioxide is a threat in the traditional off-season. The market in many good conditions, titanium dioxide prices tend to be reasonable is inevitable.
(002601, stock bar) on the evening of June 5, the company disclosed the latest revision of the non-public offering plan, the company will raise 757 million yuan to raise 10.26 billion yuan, the acquisition of 100% of the long-term titanium industry. The acquisition of Sichuan Longyu by Yulilian will further promote the development of the entire titanium dioxide industry.
Longyu titanium industry in 2014 production capacity of 300,000 tons, ranking first in Asia and the world's sixth, and the company's own production capacity of 260,000 tons, after integration of the company's total production capacity will reach 560,000 tons, in the domestic position, and will be ranked the world's fourth largest titanium dioxide enterprises, the competitive strength significantly improved. The merger will increase the industrial concentration of titanium dioxide in China. On the one hand, it can expand its market influence and consolidate its leading position in the titanium dioxide industry; On the other hand, you can fully grasp the entire titanium dioxide market price rights. For Yulilian, operating costs will also be reduced, because Sichuan Longyu has its own titanium ore mine, but also with the help of Sichuan Longyu export channels to speed up the international layout.
and titanium dioxide enterprises hope that this round of acquisitions can add a fire to the titanium dioxide market, but the industry mergers and acquisitions in the short term can only stabilize prices. Analysts believe that the capital market action will not have an impact on the price of titanium dioxide, the real single is still a single look, look at the amount, look at the payment form of a single discussion.
exports of titanium dioxide in April showed a sharp decline, some enterprises therefore lowered their prices, the later decline in exports is expected to slow down. Customs export data show that in April, the export volume of titanium dioxide was 43,589 tons, down 7.03% month-on-month, down 17.01% year-on-year; The average export price in April was $US1,855.77 a tonne, down 0.72 per cent month-on-month and 8.61 per cent year-on-year.
And since April last year, the number of titanium dioxide exports has increased significantly, and for four consecutive months as high as 50,000 tons, some industry insiders also hope that this year can still repeat last year's trend, thereby supporting the price of titanium dioxide continues to rise. However, it turns out that history is often difficult to repeat, April exports rarely month-on-month and year-on-year at the same time fell, can be said to have encountered the export of Waterloo, for the domestic titanium dioxide market, but also caused a clear negative atmosphere, the late price trend is therefore overshadowed.
the top pillar of domestic titanium dioxide exports, Longyu, Yulilian, Shandong Dongjia in April exports fell sharply across the board. It is understood that in the past two months, some exports did show some resistance, mainly due to Europe, North and South America and parts of Southeast Asia due to the abundant supply of titanium dioxide. As a result of lower overseas prices, the cost-effectiveness of domestic exports weakened, resulting in a decrease in the volume of exports. External demand environment is not good, and in April China's titanium dioxide prices, the lack of cost-effective advantage, resulting in a sharp drop in export volumes.
After Waterloo in April, some companies in May have adjusted their export prices by $50 to $100 a tonne, so China's titanium dioxide may regain its price advantage and boost overseas competitiveness. It is expected that from June to July, the downward trend in titanium dioxide exports may gradually slow down, the monthly export volume will remain at about 45,000 tons, but it is still very difficult to reach the high level of the same period last year.
Overall, the industry forecast, due to june-July domestic trade demand is expected to be weak, at this time to reduce export volume will undoubtedly increase domestic sales pressure, so June-July titanium dioxide prices are very difficult, or will fall into a longer period of stalemate consolidation stage.