At the beginning of the new China Drying News, market participants stated that the titanium dioxide industry is greatly affected by the global macroeconomic situation. If the Chinese economy continues to slow down, the US economic uncertainty continues, and the euro zone is still in debt crisis, then 2013 Demand for titanium dioxide will further decrease in the first half of the year, and prices are likely to further decline.
In 2012, the global titanium dioxide price staged a “roller coaster†market: In the first half of the year, due to tight supply prices, prices have risen repeatedly; after July, due to abundant supply and weakened demand, titanium dioxide prices have entered a downward cycle; by the end of the year, global titanium dioxide The supply of the market has already been surplus and the price has fallen by more than 20% from the beginning of the year.
In the second half of 2012, the Asian titanium dioxide market was extremely lightly traded. The oversupply of the market further weighed on buying sentiment and led to a sharp drop in prices in the fourth quarter. According to data from ICIS, in early December 2012, the price of titanium dioxide in Asia had dropped to the lowest point in 2012 from US$3,000 to US$3,500 per ton (CFR, Asia), a decrease of approximately 21% from the beginning of 2012.
In the new year, people have yet to see the hope of getting out of the bear market. Manufacturers may have the urge to curb price increases, at least in the first half of the year, as current market demand continues to slump. A market participant in South Asia said: “Manufacturers’ price hikes will affect the market’s buying popularity, especially in bear markets.†A Middle East trader and a Southeast Asian buyer said that the current market for titanium dioxide is in excess supply. If 2013 continues to be surplus, prices will fall further.
It is predicted that due to the continued weakness in demand, titanium dioxide producers may not increase prices in 2013, at least in the first half to maintain price stability or further decline.
Due to the significant decline in sales of titanium dioxide in the world in 2012, the profits of major producers have dropped significantly. Tronox, headquartered in the United States, reported in the third quarter of 2012 that sales of titanium dioxide business were only 277.8 million US dollars, a decrease of 30% from the previous year, mainly due to the sharp decline in sales, especially in Asia. Kronos, another US-based producer, reported in the third quarter of 2012 that its net income in the third quarter was US$35.2 million, a 59% decrease from the same period in 2011, due to a decrease in sales and an increase in operating costs. .
Despite this, some producers are still optimistic about the higher earnings in 2013. A titanium dioxide manufacturer in Asia said: "As inventory is gradually depleting, although demand cannot be substantially increased in 2013, prices should be able to maintain a steady increase, because Asia's supply will tend to be tight." Teno CEO Tom Kay Tom Casey also expressed confidence in the recovery of demand for titanium dioxide in 2013. Kathy said: "Despite the current low demand for pigment products, we believe that the fundamentals of demand have already begun to strengthen, and sales revenue in 2013 will begin to increase."
Some titanium dioxide producers also stated that they can complete destocking activities by the end of January 2013, which will stabilize the supply and demand balance in the market. Huntsman Corporation of the United States stated that the company's destocking activity had ended at the end of the fourth quarter of 2012.
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