March titanium market review
Driven by the warming of the downstream market, the price of the domestic climbing flower 10 # mine began to rise slightly at the beginning of March, and most businesses did not include tax quotes at 1,180 yuan/ton. 20 # mineral enterprises without tax quotes are still between 1200 yuan and 1250 yuan per ton, and they have not raised prices at the same time. By mid-March, Panzhihua Titanium Mine had ended its price adjustment and turned to delivery orders. With the end of the government's restrictions on the external transportation of titanium mine, the production situation of the selection plant in Panzhihua area gradually returned to normal; The recovery of iron ore and titanium ore prices has increased the enthusiasm of enterprises and the total output of titanium ore has increased. Overall, the price of Panzhihua Titanium Mine in March was slightly adjusted, and supply and demand were generally stable.
The import titanium market also experienced price increases. Among them, the prices of African mines, some Australian mines, and Vietnamese mines have risen to varying degrees. At present, the supply of high-quality imported titanium ore is still relatively small, and the price is always high and relatively popular. The price difference of high-grade titanium ore in low-grade titanium ore can reach 300 or 400 yuan, and the market is not smooth. How to solve more and more low-grade titanium ore, so that it can be successfully used by downstream enterprises, will become a problem that importers of titanium ore need to consider in the future.
The gold and red stone market was relatively calm in March. Due to the absence of a large number of high-grade rutile procurement activities, its price has been stable between 8,300 yuan and 8,600 yuan/ton. With the increase in the purchase of 90 % to 92 % grade rutile in the market, the sales situation of 90 rutile has improved. Although its price did not increase significantly, inventory on the market is gradually declining. Due to outstanding price performance, the market share of the future 90 % ~ 92 % grade rutile or will replace the 95 % rutile.
At the beginning of March, the domestic bid price for high-titanium slag dropped slightly by 20 yuan/ton, and downstream companies recruited a bid price of 5,800 yuan/ton for 90 high-slag. Although the titanium slag company believes that this price is low, it has no bargaining power and can only be passively accepted. According to Ruidao, due to the poor performance of high-titanium slag, some titanium slag enterprises in the North have gradually transformed into producing acid slag. In March, the acid slag market prices were the same as in February, unchanged. Although downstream product prices have recovered, but the demand for acid residue is still low. According to some acid slag enterprises, due to the fact that the efficiency of its main procurement customers has not significantly improved, the customer even proposed to lower the price of acid slag procurement, after negotiations to maintain the price unchanged.
Some titanium tetrachloride companies slightly increased their selling prices, an increase of about 100 yuan. Due to strong downstream demand and good price tolerance, the price adjustment of titanium tetrachloride did not affect its sales. In the middle and late March, sponge titanium companies collectively increased by 1,000 yuan/ton. The price of sponge Titanium is only one step away from the 70,000 yuan pass. It is understood that driven by the chemical industry and the production of new products of the people's products has gradually increased. At present, the supply and demand of the sponge titanium market is two strong, and enterprises generally have no inventory, and the number of hand orders is sufficient.
At the beginning of March, domestic titanium dioxide companies collectively raised their prices, rising between 500 yuan and 800 yuan per ton. After this campaign, the price of titanium dioxide was consolidated in February and the market has come out of the bottom before the Spring Festival. At present, the inventory of large domestic enterprises is within a reasonable range, and most small and medium-sized enterprises are also within a safe level. Individual enterprises have certain sales pressures, but their prices are also higher than the price in February. It can be said that in March the domestic titanium dioxide market achieved a bottom rebound.
High titanium slag prices affected by the new policy
High titanium slag market in April ushered in a new round of signing period. As a result of the implementation of the new VAT policy since April 1, the VAT tax rate for high-titanium slag companies has also been reduced from the previous 16 % to 13 %. Affected by this, downstream companies also lowered the price of high-titanium slag when launching a new round of procurement tenders, a reduction of 100 yuan per ton. With this round of price reduction, the business difficulties of high-titanium slag enterprises that have been struggling have further intensified.
The central government's original intention was to ease tax pressure on production companies, but before the policy came, many companies encountered requests for lower prices from downstream customers in mid-March. As a result of the lack of understanding of the tax reduction measures, customers often require a reduction of much more than 3 % of the value-added part, which means that the profit space of production companies is compressed and companies have not yet benefited from the tax reduction. But first I felt the embarrassment of selling.
Prior to this, high-titanium slag enterprises have been operating near the profit and loss line. After the purchase price of high titanium slag was further reduced in March, some titanium slag companies chose to stop production due to the increase of etching cost; Other companies have chosen to cut production sharply, supplying only a small amount of products to old customers to maintain relationships. The author believes that the current domestic high titanium slag price has been lower than the industry average cost level. A few enterprises may be able to afford the current price, but it is also difficult to obtain profit space, and the production cost of most companies is already higher than the current price. If this situation lasts longer, it will inevitably lead to the continued closure of some titanium slag companies. If the current cost is only calculated, the production capacity of titanium slag enterprises that can maintain a balanced income and expenditure can not meet the entire domestic demand for titanium slag. That is to say, the current high titanium slag supply and demand balance of the surface is dependent on the production of some loss-making enterprises to support. The author believes that this situation will not be sustained for a long time. The expansion of supply capacity of low-cost enterprises, as well as the recovery of titanium slag prices and the restoration of the balance of payments of titanium slag enterprises that are currently operating at a loss, will become the two directions for the development of the titanium slag market in the future.