China's
biggest Manufacturer of Titanium Dioxide (TiO2), Henan Billions, announced the
raise of its TiO2 prices for the second time during the last two month, according
to CCM analysts. As TiO2 is one of the most important materials
for the plastic production, with 26% of global demand in 2016, the impact will come
out soon.
Henan
Billions Co., Ltd. unveiled the raise on 2 Nov. 2016 with an increase of
$147.64/t for its domestic clients and $150/t for international buyers. CCM's
researchers affirm, on 14 Sep 2016, Henan Billions had lifted the prices earlier
for its Chinese and overseas clients at an amount of $73.82/t and $50/t
respectively.
Source: Baidu
Although
Henan Billion is the only TiO2 producing company in China, which has raised the
prices recently, other companies are likely to follow. This is due to the fact
that Henan Billions has a market share of 24% in China and is the fourth
biggest TiO2 manufacturer worldwide after Chemours, Huntsman, and Christal
Kronos, since the successful acquisition of Sichuan Lomon Titanium CO., Ltd.
The
price of TiO2 will probably rise even more in the next months, according to
CCM's analysts. The main purpose for this are the increasing prices of the upstream
materials for TiO2, ilmenite and titanium slag. To tell some numbers, the price
of 46% titanium concentration ore in Sichuan province showed a range from
$126.97 to $129.92/t. Furthermore, the cost of 90% high titanium slag in North
China reached $597.93 to $605.31/t. The increasing costs of this raw materials
in China will likely lead to further price adaptions of TiO2 from the main
Chinese TiO2 producers, like CNNC Hua Yuan Titanium Dioxide, Jilin GPRO
Titanium Industry, and Anhui Annada Titanium Insuarty.
What's
more, the continuous depreciation of the Chinese RMB also obtains its share in
the increasing TiO2 prices. For the chemical industry, this has the significance,
that the export business of TiO2 in China has a great performance in these
times. Precisely, the year in year change of TiO2 is 49.07%, so an analyst of
CCM. Finally, the third reason for elevating prices conduct in the low amounts
of inventories in Chinese companies compared to the huge export of TiO2. The
demand is still increasing, while the supply loses reserves, which naturally
will lead to higher prices.
International
manufacturers of plastic goods should be aware of this price trend, since
Chinese companies are one of the biggest suppliers of the world's TiO2 amount. In
fact, in Sept. 2016 China exported 68,531 tonnes of TiO2 with the average
export price increased by 2.27% month on month. This is an increase of 49.07%
in a year on year change. According to CCM' analysts, the main importing nation
for Chinese TiO2 is the USA, followed by South Korea, Brazil, and India.
Source: CCM & China Customs
The figure shows, that the import volume of TiO2 in China on the one hands has some ups and downs, but in average the amount doesn't change much compared to last year. The export volume on the other hand shows some significant increase and this trend is predicted to continue.
TiO2 plays an important role in the plastic industry, because it is used largely for the white pigments that have a better aesthetic look than the colorless commodities. Further areas of use are painting, coating and fabrics. In Conclusion, manufacturers of plastics, paintings, coating, and fabrics will be affected the most of the price increase of Chinese's exports in the following months.
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Tags: TiO2 Henan Billions