钛白粉中国月报(钛白粉中国月度报告1711)

In Nov. 2017, China's TiO₂ price showed a downward trend with a gap of USD30.17/t–USD45.25/t (RMB200/t–RMB300/t) between quotations and actual transaction prices. Several reasons led this decrease. China's TiO₂ market entered the traditional slack season, so some dealers adopted sales promotion to ensure smooth capital flow and outstanding financial performances. Furthermore, domestic ilmenite prices slightly declined this month, which was resulted from the wait-and-see attitude of downstream TiO₂ companies. Although the leading manufacturer, Lomon Billions Group Co., Ltd., announced production reduction and suspension,TiO₂ prices were scarcely boosted. When it comes to Dec., China's TiO₂ export volume will significantly drop due to the upcoming New Year. Therefore, producers and exporters will suffer huge stockpiling and be drifted to a brutal price war.

Market dynamics of titanium products in Nov. 

Ilmenite

Falling ilmenite prices and fewer transactions were seen in the Panxi Area (Panzhihua and Xichang cities, Sichuan Province) in Nov. 2017. The price decrease was decelerated by local environmental protection inspections but could not stop due to sluggish downstream demands.

Titanium slag

China's high titanium slag market remained stable in Nov. 2017 and most manufacturers were not positive about future prices. Reasons for this were smaller demands from TiO₂ and titanium tetrachloride industries, as well as lower prices of graphite electrode and ilmenite. On the other hand, Nov. 2017 only witnessed a small amount of transactions in China's acid dissolved slag market and the trading price fell down regardless of manufacturers' efforts to support prices.

Imports and exports

China's TiO₂ import and export volumes decreased MoM in Sept., 2017. Downstream markets of the TiO₂ industry were slack, so importers were very cautious about imports. As for exports, some domestic TiO₂ enterprises faced huge environmental preservation pressure, reducing supplies for overseas markets.

Important market dynamics

On 9 Nov., 2017, Lomon Billions Group Co., Ltd. announced the production suspension of the Deyang Production Base for overhaul and maintenance. Before this, its production base in Jiaozuo City, Henan Province, had planned to limit production for four months.

On 6 Nov., 2017, CNNC Huayuan Titanium Dioxide Co., Ltd. published an investment of USD4.68 million (RMB31 million) to purchase a 33.30% stake in Yixing Huayi Pigment Technology Co., Ltd.

On 1 Nov., 2017, the Ministry of Environmental Protection and the Ministry of Industry and Information Technology issued an announcement requiring some industries to adopt off-peak production in this winter.

The USD/RMB exchange rate in this newsletter is USD1.00=RMB6.6300 on 1 Nov., 2017, sourced from the People's Bank of China. 
All the prices mentioned in this newsletter will include the VAT, unless otherwise specified. 
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