In 2022, the overall price of titanium dioxide showed a trend of rising first and then falling. The average price was 20,733.33 yuan/ton at the beginning of the year, and fell to 15,933.33 yuan/ton at the end of the year, with an annual decline of 23.15%.
Price trend overview
In 2022, the market price of titanium dioxide experienced significant fluctuations, falling 23.15% throughout the year, from 20,733.33 yuan/ton at the beginning of the year to 15,933.33 yuan/ton at the end of the year. This trend can be divided into three stages:
Rise in the first quarter: Affected by good export orders, rising prices of raw material sulfuric acid and corporate price increases, the price rose by 1.77% in total, with rutile titanium dioxide quoted at 20,000-22,000 yuan/ton and anatase at 18,000-19,500 yuan/ton.
Sharp decline from the second to the third quarter: Due to logistics control, weak demand and the decline in the prices of raw materials titanium ore and sulfuric acid, the cumulative decline from April to September reached 22.93%, and the price of rutile type fell to 15,500-17,000 yuan/ton.
Stabilization in the fourth quarter: In November, leading companies collectively announced price increases to stop the decline, but affected by the off-season, prices still fell slightly by 2.55%. At the end of the year, the rutile type was quoted at 15,000-17,500 yuan/ton.
Key influencing factors
Cost side: Fluctuations in the prices of titanium concentrate and sulfuric acid directly affect the cost support of titanium dioxide. For example, the price increase of sulfuric acid in the first quarter pushed up the price of titanium dioxide, while the sharp drop in sulfuric acid prices in the third quarter exacerbated the market downturn.
Demand side: The sluggish real estate market led to a decrease in demand for coatings, coupled with the logistics restrictions of the epidemic, and the market was sluggish.
International linkage: Chemours, Tronox and other international giants announced price increases (US$300-400/ton) in early 2022, but weak domestic market demand weakened the follow-up effect.
Corporate price adjustment dynamics
Collective price increase at the beginning of the year: Domestic companies such as Longbai Group and China National Nuclear Titanium Dioxide raised prices by 1,000 yuan/ton for domestic customers and US$150/ton for international customers from January 1.
Mid-year price reduction pressure: From July to September, the guidance price of Longqi was reduced by 2,700 yuan/ton in total, and power restrictions in the southwest region further exacerbated corporate production cuts.