Looking at the recent market performance, the current situation is different. The mainstream in the market is divided into two major categories.
For the current large-scale first-line companies, their supply order is mainly exports - direct supply - dealers. In other words, the first source of goods produced every month guarantees exports. The export volume of mainstream enterprises can account for 30-40% of their total output. Some enterprises can account for about half, followed by direct supply terminal customers, accounting for about 30-40% of the total share, and will finally do it to dealers. Sales. The advantage of this model is that domestic titanium dioxide companies are not so much under pressure in domestic sales. The products produced each month are basically exported or given to downstream factories. Sometimes, it is difficult for major distributors to get their contract amount each month, and they can only wait. Therefore, for domestic titanium dioxide enterprises, the sales pressure of domestic first-line brand enterprises is relatively weak, and their steady prices are mostly wait-and-see.
For some second- and third-tier brands of SMEs, their sales pressure will be even greater. First of all, it is very difficult for them to export. Basically, domestic sales are the main factor, coupled with the lack of differentiated advantages, the company's shipments are difficult to have obvious competitiveness. In the current situation of a decrease in the overall new unit volume, sales pressures for small and medium sized titanium dioxide companies have continued to increase. Although ostensibly following the mainstream companies’ strategy of maintaining stable prices, they actually adopt a single strategy in the overall transaction, according to Zhuo. The research found that a small number of companies have already experienced some degree of loosening in the actual transaction process.
For domestic import agents, the current overall market is relatively optimistic; due to the limited supply of foreign companies to the domestic market, foreign products are relatively tight in the high-end market. In this case, foreign companies have upward adjustment plans in the later period. Huntsman raised US$250/tonne in domestic plans and Tenovan plans to increase US$200/tonne, and the Section’s increase is expected to be above US$250/ton.
Based on the above, for the current titanium dioxide market can be described as a few happy, but the market is running to the present, the terminal downstream of the resistance to titanium dioxide has emerged, whether it is tight imported goods or domestic mainstream companies inventory is low, late Titanium dioxide business sales pressure gradually increased, the surface of the short-term market is calm, but in fact surging flows, do not rule out late-stage market deposits callback risk, suggest that operators cautious operation, concerned about the company out of storage and inventory recovery.
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