Titanium dioxide prices are skyrocketing

"This year, the price of titanium dioxide rose too fast! Recently, titanium dioxide companies are reluctant to sell, waiting for price increases. And then this rise, the downstream companies can not live children!" Recently, a masterbatch manufacturer The person in charge gave CCIN reporters a phone call and poured in a drudgery. Titanium dioxide downstream companies really have such a hard time? Why is the price of titanium dioxide soaring? Is this price increase good or bad for the titanium dioxide industry? CCIN reporter conducted a survey interview on the titanium dioxide industry chain.

Downstream companies: We will stop production soon

It is understood that the scientific name of titanium dioxide, titanium dioxide, is the main raw material for plastic color masterbatch, paint and other industries. Titanium dioxide prices have soared since the end of last year, causing downstream industries to suffer.

"It is undeniable that the main raw material of titanium dioxide titanium concentrate and ** have risen from last year to the present price. ** From last year's 400 yuan per ton to the current about 600 yuan; titanium concentrate from 800 to 1000 per ton The yuan rose to 2,000 yuan.Calculated according to the need for 4 tons of titanium dioxide per ton and 2.5 tons of titanium concentrate, the current cost of titanium dioxide is about 8,000 yuan per ton, but the price of rutile titanium dioxide is from last year's Ton 14,000 yuan rose to the current 24,000 yuan; anatase titanium dioxide also rose from the price of not more than 15,000 yuan per ton last year to the current 20,000 yuan. Titanium dioxide enterprise profits, we die!" Changzhou City Zhou Jiezhong, general manager of Baobao Plastic Metal Co., Ltd., said with a face.

While the price of titanium dioxide soared, the price of masterbatch did not increase. Zhou Jiezhong stated that because the downstream plastic products are sold to the common people, the room for price increases is very small, and prices cannot rise. “Upstream titanium dioxide has been on the rise, but the prices of downstream plastic products have not risen, resulting in a corresponding increase in the price of masterbatch. The masterbatch companies are sandwiched by splints. Each month the company uses a few Ten tons of titanium dioxide, compared with last year, cost a few hundred thousand dollars. And if this continues, we will have to stop production!"

According to Hong Qi, deputy general manager of Ningbo Masterbatch Co., Ltd., titanium dioxide rose so fiercely in a short period of time that it caught the industry by surprise. The higher the output of the masterbatch, the higher the loss. The price increases, downstream plastic products companies can not accept, can only reduce production.

“Now one-third of customers are lost.” Chen Weiguo, general manager of Shandong Luyan Masterbatch Co., Ltd., reluctantly stated that the profits of the downstream plastics manufacturing companies are very low. If we increase prices, they will definitely quit. And it is an annual contract with some customers, people do not care what your current situation. Titanium dioxide is now completely sold to the seller's market. The tone of titanium dioxide companies is very hard: the price is so high, masterbatch companies love to buy it or not. "I have communicated with several masterbatches companies in the south. They all said they could not do it."

Qiao Hui, secretary general of the Masterbatch Specialty Committee of the China Dyestuff Industry Association, said that the price increase of titanium dioxide has brought unprecedented difficulties to most masterbatch companies. It was not so difficult during the 2008 financial crisis.

Titanium dioxide is also a bad day for another important downstream industry coating company. Chen Hengfu, chairman of Dalian Zhenbang Fluor Coatings Co., Ltd., told CCIN that titanium dioxide is the main raw material of the coating. Titanium dioxide price rises, but the coating is difficult to rise. Because the paint market did not show significant growth compared to the previous year, the days of paint companies were very difficult under the circumstances where raw material costs were greatly increased.

CCIN reporter learned that the current downstream customers of titanium dioxide have not paid for advance payment and have to wait in line. Titanium dioxide manufacturers recently reluctantly sold, waiting for a new round of price increases. The company's warehouse is clearly in stock, but it tells the customer that it is out of stock.