Titanium dioxide market supply continued to lead to 2017 since the European market prices continued to rise, and is expected to continue to the third quarter, which will lead to paint and other downstream industries profitability problem becomes more obvious.
| PVA 1799 (PVA BF17) |
According to the European market, some procurement and sales information that, due to continued tight supply, the third quarter, titanium dioxide prices are generally expected to rise, the negotiations are very small.
Titanium dioxide prices continue to rise for a variety of reasons, including the European and global titanium dioxide industry, the merger and reorganization, as well as the past few years the manufacturer strict inventory control, as well as Huntsman Finnish titanium dioxide plant earlier in 2017 occurred Fire and so on.
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Is expected in the third quarter, the price of titanium dioxide agreement is likely to rise in the current price of 180 to 350 euros / ton.
Although the price increase in the third quarter contract price, but according to the supply, suppliers and product level differences, the expected price increase is generally about 250 euros / ton, up to 300 euros / ton.
In the third quarter, according to the different product grades, the contract price for standard titanium dioxide products for paint and paint production is about 2500 to 3000 euros / ton (FD, free delivery price).
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Paint and other areas of the downstream buyers said that in view of raw material prices rose sharply, especially titanium dioxide prices rose sharply, and continued to rise for more than 1 year, their profit margins are declining, this is trying to transfer pressure to the downstream areas.
But these users also said that the downstream market competition is very intense.
“The profitability of the firm is quite tough and we can not digest it through sales growth, so the profitability of the firm is under extreme pressure,” a buyer said.
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This relentless upstream cost pressure is causing buyers in areas such as coatings to seriously consider lowering their titanium dioxide usage or seeking other alternative possibilities if possible.
However, these buyers also acknowledged that although the use of other white filler to reduce the consumption of titanium dioxide, but with the same performance requirements of titanium dioxide alternatives is difficult to find.
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Overall, the demand for the European titanium dioxide market is still healthy, there is no obvious signs of slowing consumption, for some downstream buyers to take hoard goods measures, but in some cases artificially created the illusion of demand expansion.
According to some three quarters of the goods have been booked an empty supplier said that the supply of the European market is still tight, delivery time is short 4 to 6 weeks, long 2 to 3 months, depending on the product grade. Another buyer said that every month they are trying to confirm to meet their order quantity.
| POLYVINYL ALCOHOL FIBER |
There is also a trader that some participants in the downstream paint and coatings industry have been forced to cut their production due to the supply of titanium dioxide, but this view is not directly or widely confirmed in the market.
Due to tight supply in the European market, some players are seeking supply from Asia, as supply in Asia has improved, although prices have increased in recent months.
However, this view is not agreed by all, some European dealers said they think from the price point of view or based on the application of process quality differences in the consideration of the Asian titanium dioxide imports to Europe is not attractive.
| POLYVINYL ALCOHOL |
According to the data show that the European second quarter titanium dioxide contract price of about 2.34 ~ 2.55 US dollars / kg.
Titanium Dioxide is a white powder pigment used in the fields of paints, coatings, plastics, paper, ink, fiber, food and cosmetics.
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