In the first three quarters of 2019, the titanium dioxide market experienced three stages of ups and downs. Although the price has been rising steadily in the near future, the market price is still about 1500 yuan / ton lower than that of last year, while the price of titanium ore has continued to rise in the near future. Among them, the price of Panzhihua ore is basically the same as that of last year, the price of imported titanium ore has a significant increase compared with that of last year, and the high price of high-quality titanium ore is higher than that of last year. The price is as high as 70 US dollars per ton, with a rise of about 47% this year.
The pressure of titanium dioxide cost is large, the price of sulfuric acid has declined this year, which slightly eases the production cost of titanium dioxide. However, the weather in the North has gradually turned cold, and the market in the North has gradually entered the off-season. The price of titanium ore continues to rise.
Why the price of raw material titanium ore keeps rising?
From the supply side:
Imported titanium ore:
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According to Tu Duoduo’s data, in the first half of 2019, China imported about 1.11 million tons of titanium ore, a decrease of 32% compared with the same period last year. From January to August, China imported 1676900 tons of titanium ore, a decrease of about 520000 tons compared with the same period last year, a decrease of 23.61% compared with the same period last year.
The decrease of titanium ore import is mainly due to the exhaustion of titanium ore resources and the state’s control of radioactive elements. In this year, the resources in the raw ore area of Kenya are exhausted, Sibelco Australia is shut down at the end of 2019, and the project of melinor gudekang is shut down; there is still no quota for the export of titanium ore in Vietnam, and the export of private mining enterprises in India is still limited. In addition, China’s control on radioactive elements, titanium mines in Australia, South Africa, Vietnam and other places are all prohibited from import in varying degrees. This year, titanium is imported. There was a significant reduction in the number of mines.
Domestic titanium ore:
The output of domestic titanium ore has increased significantly compared with last year, so the price has not increased significantly compared with last year.
According to the statistics of Panxi mine, in the first half of this year, the amount of titanium minerals of small and medium-sized factories in Panzhihua area doubled compared with that of last year. In the first half of last year, the output of small and medium-sized factories around Panzhihua area was about 200000 tons, and this year it was more than 400000 tons.
In Panzhihua area, the increase of titanium production mainly includes the following aspects:
1. The price of iron ore rose, and many small and medium-sized concentrators returned to work.
2. The intensity of environmental protection is weakened, and the market operation is increased.
3. Compared with last year, Panzhihua Iron and Steel Co., Ltd. has increased the demand for outsourcing ore this year, and the output of titanium ore has increased year on year.
The output of titanium ore in Xinjiang is 145000 tons in the first half of this year and 180000 tons in the whole year of last year. However, due to the high phosphorus content of titanium ore in Xinjiang, the downstream can only be used in combination, which has little impact on the market as a whole.
It is difficult to make up for the shortage of some imported titanium ores with the increase of domestic titanium ore production. And the content of perovskite and magnesium in China is high, so the raw material of low perovskite and titanium is needed in domestic chlorination process. In recent days, the price of Panxi titanium ore rose again, mainly due to tight supply.
Demand side:
Titanium ore is mainly produced by titanium dioxide. Taking titanium dioxide production as an example, according to the statistics of Tuduo, the cumulative production from January to September 2019 is 2316000 tons, an increase of about 100000 tons compared with the same period last year, an increase of 4.72% year on year. It is estimated that there will be an increase of over 100000 tons this year.
Titanium market is good, sponge titanium market price is in short supply, and the demand for raw materials is also increasing.
Demand growth, supply reduction, so this year’s titanium ore prices also continued to rise.
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Why is titanium still optimistic?
Imported titanium ore:
The main production methods of titanium tetrachloride are shaft furnace chlorination, boiling chlorination and molten salt chlorination. The shaft furnace chlorination process with long process, small capacity and large labor volume has been basically eliminated. The production capacity of boiling chlorination is easy to expand, the three wastes are easy to be treated and other characteristics are more advanced than molten salt method. The domestic production of chlorination is mainly based on boiling chlorination. However, the requirements of boiling chlorination for raw materials are relatively strict, requiring low perovskite.
This year, new capacity of domestic chlorination process has been released, while titanium concentrate in Mozambique and Senegal is internationally recognized as the best raw material of chlorination process, with high grade and low content of calcium and magnesium (Cao, MgO < 0.01%), which has been in short supply.
This year, the capacity of new domestic chlorination process was released, which greatly increased the quality of titanium raw materials. Take longmang Bailian for example. Last year, 60000 tons of titanium dioxide from chlorination process were produced by enterprises. This year, 300000 tons of titanium dioxide were produced in Jiaozuo area. In addition, 60000 tons of titanium dioxide from chlorination process were produced in Yunnan Province, which doubled the demand for titanium raw materials from high-quality chlorination process. This year, the chlorination process of Tianyuan in Yibin was put into production, and the chlorination process capacity of Xiangsheng in Xinjiang and other enterprises was put into production. Release, sponge titanium market demand, demand for raw materials is also increasing. However, there are still a large number of capacity under construction in the market, and the mining of new mines will face various problems. The price of titanium raw materials for high-quality chlorination continues to be optimistic.
Panxi titanium ore:
1. As the price of imported titanium ore continues to rise, the downstream titanium dioxide plants are also adjusting the proportion of ore consumption and increasing the demand for Panzhihua ore.
2. Since September, Panzhihua steel titanium industry requires that the outsourced processing enterprises of iron and titanium products must return the titanium concentrate in full amount as agreed in the contract, resulting in the suspension of the export quantity of the outsourced enterprises that return insufficient amount to Panzhihua Steel in the early stage. At present, the supply quantity of titanium concentrate in Panzhihua area is in short supply. It also causes the recent price increase.
4. The price of raw ore is high and the cost of medium-sized ore is high. If the factory price is 850 yuan / ton of medium-sized ore at present, the market price is 1300 yuan / ton and there is basically no profit;
5. After the national day, the operating rate of titanium dioxide increased and the demand for titanium ore increased.
Although the titanium dioxide market has gradually entered the off-season, the supply of titanium ore is tight, and the price will still run at a high level, which also supports the price of titanium dioxide.
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