October 11, 2024 – As the National Day holiday drew to a close, the titanium dioxide market failed to ignite the anticipated fervor of the “Silver October” peak season, instead perpetuating the sluggish trend observed prior to the break. Major manufacturers’ price strategy adjustments set the tone, prompting a nationwide cascade of price reductions among most producers, with decreases generally ranging from 200 to 400 yuan per ton. This shift seemed to disrupt the market’s established rhythm, as some producers preemptively adjusted prices before the holiday to cater to stockpiling demands, thereby partially preempting post-holiday market demand. Although the new pricing policy stimulated some rigid demand, overall market demand remained far from the level expected during peak seasons, aligning with earlier forecasts by YanTai YunShang.
The reasons behind this price adjustment are multifaceted and complex. Primarily, the decline in raw material costs, specifically titanium ore and sulfuric acid prices, created a cost margin for titanium dioxide price reductions. Secondly, the market grappled with an imbalance between supply and demand, with oversupply issues remaining prominent, and intense industry competition further intensifying downward price pressures. Moreover, the pricing strategies of large manufacturers exerted a notable influence on the market, and while the decreases were limited, they were deemed necessary战术 responses within the broader market context.
Entering October, the titanium dioxide market’s weak performance became evident, with limited peak season stimulation, prompting market participants to adopt a cautious stance toward future prospects. Nevertheless, despite minor fluctuations, titanium ore and sulfuric acid prices remained generally stable, indicating that titanium dioxide prices would not undergo significant drops. It is worth noting that titanium dioxide prices did not experience a continuous decline but fluctuated according to each producer’s pricing adjustments. Additionally, while rumors of low prices circulated widely, not all were credible, necessitating rational judgment from end-users.
On another front, influenced by environmental policies and equipment maintenance, some producers experienced production cuts or shutdowns, leading to a decrease in overall operating rates within the titanium dioxide production sector. This shift could, to some extent, aid in adjusting the market’s supply-demand balance and might serve as a regular means of promoting market stability in the fourth quarter through supply adjustments. Overall, price volatility is a market norm, and amid the current weak trend, market participants must maintain rationality and adopt flexible strategies to navigate the market’s ups and downs.