2021 first half titanium ore market summary

Price Analysis

2021 first half of China's titanium ore market prices overall up trend, into June the market part of the price has weakened, individual prices have 50-200 yuan / ton drop, titanium ore prices than at the beginning of the year still have 400-500 yuan / ton increase.

1 Panxi Fengyuan has reduced the number of small and medium-sized titanium ore suppliers due to the problem of tailing, the lack of start-up in Gaoliangping area plus the recovery of titanium ore by Pansteel.

4 Downstream titanium dioxide production increased, according to Tuoduo statistics, the first half of 2021 titanium dioxide production increased by about 300,000 tons compared with the same period last year, the demand for titanium ore increased. The first half of this year, the two major plants in Panxi increased compared to last year, the overall titanium ore in Panxi to be higher than the same period last year, coupled with a larger increase in imported titanium ore in the first half of the year, titanium ore supply and demand balance is basically balanced.

Into June with the downstream market demand has weakened, titanium dioxide enterprise production decline, coupled with the price decline, small and medium-sized mine panic, prices continue to decline; and by the Panzhihua area environmental protection group strict inspection, coupled with Xichang large enterprises overhaul, the market inventory and no greater pressure, large factory inventory is still tight, prices remain stable operation.

Imported titanium ore prices also continued to rise, the highest increase of about 26% in the middle of the year compared to the beginning of the year, due to tight supplies, some imported ore also temporarily stopped quoting. There are also individual miners into the middle and end of June because of downstream pressure to receive goods, prices have also declined individually. Imported ore prices rose mainly because: First, with the resumption of domestic and foreign downstream production, the demand for imported titanium ore increased. Second, the first half of the domestic titanium ore prices continue to rise and downstream titanium dioxide prices upward, the price of imported titanium ore has some drive. Third, shipping costs continue to soar, the cost of imported titanium ore increased. At the end of June, the world's largest titanium raw material supplier Rio Tinto RBM occurred force majeure factors shutdown, iluka plans to stop Sierra rutile production business in November, titanium raw material supply further tension, coupled with the release of new domestic chlorination capacity, the second half of imported titanium ore will continue to be tight.

Import and export data analysis

According to customs data, the cumulative import volume of titanium ore in China from January to May 2021 was about 1.610 million tons, an increase of 21.48% year-on-year, and an increase of about 286,700 tons compared with the total volume from January to May 2020. With the rise in titanium ore prices, the amount of increase in imported titanium ore has also increased, including a large number of gross ore increase.

2021 January-May total imports of the top three countries for Mozambique, Vietnam, Norway, respectively, accounting for 34% of total imports, 15%, 9%, which increased by countries such as South Africa, Brazil, Sri Lanka, Vietnam and other countries. Among them, South Africa's imports of titanium ore, Vietnam's titanium ore increased mainly by the export quota liberalization, and the second half of the second half with the first half of the enterprise to inventory Vietnam's imports of ore will be reduced. With the normal recovery of international titanium dioxide producers plus titanium chloride raw materials tension, the second half of imported titanium ore back home than the first half of the year is expected to be reduced.

Post Market Forecast

In the first half of 2021, China's domestic titanium ore and imported titanium ore volume than last year have increased significantly, while the downstream titanium dioxide and titanium sponge products have increased significantly over the same period last year, both titanium dioxide and titanium ore in the second half of the year have more new production capacity release, titanium ore demand will also be further enhanced. Mid-year market off-season, part of the price adjustment, with the release of new production capacity in the second half of the year, and limited expansion of titanium ore coupled with high shipping costs, sulfate titanium ore prices are difficult to have a significant decline. As the titanium dioxide market improves, prices will be able to rebound. The second half of the chlorinated titanium raw materials to reduce the chlorinated titanium dioxide and titanium sponge put into production more, the second half of the chlorinated titanium raw materials will also continue to run at a high level of tension.