Since july, titanium powder has been “swinging up”. In the last month of 2020, titanium powder is rising again. From 1 to 3 december, a number of titanium powder companies, such as the pyramids, shandong, chinese titanium, and mountain hosts, announced an increase in the price of their products。
“the factors affecting the price of titanium powder are mainly cost and supply and demand. The price of titanium powder is expected to rise after the round has gone up.”
Multi-company price adjustment
“it appears from the current letters of price increases issued by various enterprises that domestic sales prices have increased at $500 per ton-800 per ton.” xiaoyu tan told journalists。
On 1 december, pyramid burry announced that, as of that date, the company's sales prices for titanium powder of various types would be increased by $500 per ton to various domestic customers and $100 per ton to various international customers. The steel climbing group, chengdu resource development limited, announced an increase of $700 per ton in domestic and international prices for titanium powder containing tax base prices, effective 1 december。
Subsequently, a number of enterprises, such as dongja shan, the chinese nuclear titanium and the mountain host, issued successive price increases. Dongja shan announced an increase of $800 per ton in the domestic sales price and $100 per ton in foreign sales from 2 december 2020 for the company titanium powder series。
As of 3 december, china's titanium announcement states that the prices for the company's various types of titanium powder will be fully increased on the basis of existing titanium powder sales prices. Of these, the domestic customer sales price was increased by $600 per ton and the international customer export price by $100 per ton。
It is worth noting that the price increase for chinese titanium is the sixth increase in product prices in the second half of the year. The company raised the price of titanium powder in its main production on 14 july, 7 august, 8 september, 10 october and 29 october。
The chinese nuclear titanium indicates: “the company will follow closely the trend in titanium powder prices and changes in supply and demand at a later stage and will do the price adjustment for titanium powder products in a timely manner. This across-the-board increase in the price of the main product contributes to the further enhancement of the company's sustainability and is expected to have a positive impact on the outcome of the operation.”
Increased prices of raw materials plus better supply and demand
As a result of multiple rounds of increase, the mainstream price in the titanium powder market has risen from $12,500 per ton at the end of june to around $16,000 per ton. According to the business agency, the latest price of titanium powder was $1666. 67 per ton on 2 december, rising by 4. 17 per cent over the last five days, by 5. 26 per cent over 10 days and by 16. 28 per cent over 60 days。
As to the reasons for the continuing increase in the price of titanium powder, xiao rain said: “the two main factors are driven by the continued increase in the price of the raw titanium mine and the increasing pressure on the cost of the enterprise; and the recovery of the demand side and the continuing strain on the supply of spot goods.”
According to the business society, the offer for titanium concentrates was 1970 yuan/tonne on 11 november, up nearly 25 per cent from $1625/tonne on 13 october and 40 per cent from $1,400/tonne in september. On 2 december, the price of titanium concentrate was $2075 per ton, an increase of 55. 43 per cent over the same period. “in addition to the reduction in the overall production of titanium concentrates as a result of the reduction in the supply of titanium and the stress on the spot resulting from successive overhauls at the titanium mining plant, the price of titanium concentrates on a continuous rise. The increase in the price of titanium concentrates directly raises the production costs of titanium powder companies, with many firms raising the prices of their products。
“in the short term, the real price of titanium concentrates remains high or high”
According to statistics provided by the general customs administration, our exports of titanium powder amounted to 110,236. 39 tons in october 2020, a decrease of 1. 43 per cent in the ring, an increase of 38. 84 per cent over the same period. The cumulative volume of titanium powder exports in january-october 2020 was 999776. 4 tons, an increase of 21. 81 per cent over the same period. According to industry sources, total exports of titanium powder in the first three quarters were almost at the level of the whole of 2019. In the context of the global epidemic, the export of titanium powder has again reached a new high, with a projected total of 1. 2 million tons by 2020。
In addition, the tight supply of titanium powder is one of the important reasons for its continued price increase. “in december, the planned cut-off of some businesses will further exacerbate tensions in the domestic spot market.” shifu believes。
In a situation of supply constraints, most enterprises have sufficient orders. In response to investors' questions on the interactive platform, china's titanium is: “the company is now placing sufficient orders at hand to maximize benefits with a view to balancing production and sales.” in response to an investor's question, anada stated: “the company is now fully overstretched, holding more orders, and is expected to complete its annual plan with some increase over the previous year”
The question is whether the price of titanium powder will rise after that. Xiaoyu tan said to journalists: “there is still room for further increases in titanium powder prices in the light of current upward price trends and supply and demand for raw materials”
