1、 Price trend

Taking sulfuric acid based rutile type titanium dioxide, which has a large volume of sales in the domestic market, as an example, according to data monitoring from Business Society, the domestic titanium dioxide market declined in December. On December 1st, the average price of titanium dioxide was 16650 yuan/ton/ton, and on December 26th, the average price of titanium dioxide was 16483.33 yuan/ton, with a 1% decrease in price.

2、 Market analysis

The titanium dioxide market in December was average. Overall, the international foreign trade order situation is still good, and the export market remains good. Longqi sent a letter stating that the foreign trade price of titanium dioxide has increased by $100 per ton since January 1, 2024. The domestic terminal market is relatively quiet, with strong downstream wait-and-see sentiment and cautious order acceptance. Manufacturers often deliver early orders, and new orders have limited transactions. The upstream raw material market is at a high level, and titanium dioxide manufacturers are under great pressure. As of now, most domestic quotations for rutile type titanium dioxide are between 16000-17600 yuan/ton; The quotation for rutile titanium dioxide is around 14500-15000 yuan/ton.

According to customs data, the import volume of titanium dioxide in China in November 2023 was 9262.96 tons, a month on month increase of 18.72% and a year-on-year increase of 63.18%; From January to November 2023, the cumulative import of titanium dioxide from China was about 73300 tons, a decrease of 36.90% compared to the same period last year, and the import volume decreased by about 42900 tons.

In November 2023, China’s titanium dioxide exports reached 124900 tons, a month on month increase of 5.10% and a year-on-year increase of 16.54%; From January to November 2023, the cumulative export of titanium dioxide was about 1.4983 million tons, a year-on-year increase of 17.14%, and the export volume increased by about 219200 tons.

In terms of titanium concentrate, the market price of titanium concentrate in the Panxi region fluctuated slightly in December. With the decrease in raw ore supply and the shutdown of large factories. Titanium ore spot prices are slightly tight, and there is no pressure on enterprise inventory. Downstream procurement is still acceptable, and prices at the low-end of the market have slightly increased. As of now, the tax-free quotation for 38-42 grade titanium concentrate is around 1480-1500 yuan/ton, the tax-free quotation for 46 grade 10 titanium concentrate is around 2150-2200 yuan/ton, and the quotation for 47 grade 20 titanium concentrate is around 2350-2480 yuan/ton. In the short term, the market price of titanium concentrate is mainly strong, and the actual transaction price is negotiable.

According to customs data, in November 2023, China imported 370400 tons of titanium ore, an increase of 12.86% year-on-year and 57.82% month on month, with a monthly average price of 287.93 US dollars per ton; From January to November 2023, the cumulative import of titanium ore was 3.9079 million tons, a year-on-year increase of 22.77%, and the import volume increased by about 724700 tons.

In terms of sulfuric acid, the domestic sulfuric acid market prices fell in December. According to monitoring data from Business Society, the average price of sulfuric acid in China was 302 yuan/ton on December 1st, and 278 yuan/ton on November 26th. The price fell by 7.95% during the month. The upstream sulfur market has started to decline slightly, with insufficient cost support. The downstream ammonium phosphate market has slightly declined, and downstream customers have weakened their enthusiasm for purchasing sulfuric acid. The product trend is declining under the contradiction of supply and demand. Business Society sulfuric acid analysts believe that in the short term, the domestic sulfuric acid market is mainly affected by supply and demand, raw materials, and other factors, and the price of sulfuric acid may fluctuate slightly and fall.

3、 Future Market Forecast

The titanium dioxide analyst from Business Society believes that the price of titanium concentrate in Panxi region has fluctuated slightly this month, while the price of sulfuric acid market has fallen. The cost support for titanium dioxide is average. Longqi sent a letter stating that the foreign trade price of titanium dioxide has increased, while Shandong Lubei, Hunan Yutu, and Panzhihua City’s titanium sea have sent letters raising prices, which has to some extent boosted market confidence. It is expected that in the short term, the trend of titanium dioxide will remain stable and mainly focus on consolidation and operation, depending on downstream market demand. The actual transaction price is negotiable.