Titanium dioxide price rise concept stocks revival

The once depressed titanium dioxide market finally ushered in a slight rebound. Recently, nearly 20 domestic titanium dioxide producers have increased their prices by 500 yuan to 1,000 yuan per ton. Under the news stimulus, the titanium dioxide concept stocks opened their markets yesterday, stimulating the new shares of vitamins, which are also subject to price increases, and Zhejiang pharmaceuticals to fluctuate.

Nearly 20 manufacturers raise prices In late May, after the sudden increase in price of 500 yuan per ton for titanium dioxide giant Longyan Sichuan, nearly 20 producers followed up on June 1. It is reported that currently on the market mainstream rutile titanium dioxide quoted 18,000 yuan -19,500 yuan per ton, Southwest and Shandong manufacturers offer more than 20,000 yuan, anatase titanium dioxide quoted 15,000 yuan -16,500 yuan.

The Titanium Dioxide (Shanghai) Co., Ltd. commodity index showed that the previous day's daily report was 91.48 points, which was 8.52% lower than the highest point in the cycle of 100.00 (September 4, 2011), but compared with November 20, 2011. The lowest point of 80.22 points rose 14.04%.

The mainstream view of the titanium dioxide industry believes that the rebound may be the beginning of the market, but it depends on the actual situation of downstream demand. Shangpu Consulting stated that the current coating is in the peak season of sales. With the discontinued production of many companies and the market's digestion of inventories, the future trend of titanium dioxide will slowly return to normal level, and prices will slowly rise.

In fact, the rise in the price of international titanium dioxide is the key reason for catalyzing the domestic market for titanium dioxide. DuPont, the global giant in the titanium dioxide industry, has raised prices several times since 2011. Since April of this year, the price of titanium dioxide in North America has been raised to 20 cents per pound (up by 1.05%), and Japan’s Ishihara has also raised prices since April 1st. Titanium dioxide in Asia is priced at US$400 per ton. Affected by the price increase of overseas international manufacturers, the price of rutile titanium dioxide in the southwestern region of China has increased.

Subjects of price hikes stimulated the rise in price of vitamin stocks. Titanium dioxide concept shareholders China Technology, Western Materials, and Infineon were active yesterday. The two titanium “Hutchers” of Annada and Silicon Valley were even higher. Once soared, it stimulated new vitamins stocks that had the same price increase as the subject, and Zhejiang Pharmaceuticals fluctuate higher.

“The global supply of titanium dioxide is in the hands of the top five foreign suppliers. Even if the raw material prices increase, the strong bargaining power of the top five manufacturers can transfer the cost to the downstream. For the downstream, titanium dioxide accounts for a small proportion of its cost, so the titanium dioxide company With the ability to over-allocate even higher costs, environmental protection policies and new applications of titanium dioxide are powerful catalysts for future stock prices, said Cheng Lei, an Everbright Securities analyst.

GF Securities expects that, from the raw material point of view, the initial price of titanium concentrate, the main raw material of titanium dioxide, will rise sharply. With the high price of titanium concentrate, domestic and international titanium concentrate production capacity will be gradually released, and the production capacity of titanium dioxide industry will increase in an orderly manner. With steady growth, the business climate is expected to maintain a high level. Ananda's production capacity has been fully utilized, and production capacity has become a bottleneck restricting the company's performance. In the first half of this year, the company's newly raised 40,000 tons of dense coated rutile titanium dioxide is expected to be put into operation by the end of 2012 and will begin to contribute in 2013. By then, the company's capacity bottleneck will be eased to some extent.