Daily Review: Anatase and Chloride-Process Titanium Dioxide - Off-Season Inquiries Decrease, Earlier Orders Support Prices to Remain Relatively Stable

Market overview: On July 1, inquiries for rutile titanium dioxide weakened in the off-season, while earlier orders continued to support relatively stable prices. The mainstream market quotation for anatase titanium dioxide was RMB 13,600-14,200/ton, unchanged from the previous working day; the mainstream market quotation for chloride-process titanium dioxide was RMB 16,500-18,200/ton, unchanged from the previous working day.

Market analysis: The titanium dioxide chloride-process market is operating overall steadily, with a subdued trading atmosphere. Mainstream chloride-process titanium dioxide producers are still mainly focused on fulfilling previously accumulated orders and export orders. Short-term sales pressure remains manageable, ex-factory quotes are firm, and overall profitability is significantly better than that of the sulfate-process route. However, affected by high temperatures and low operating rates in downstream industries, domestic demand has entered the traditional off-season. Inquiry activity is quiet, purchases are mainly based on essential demand, and new order volumes are limited. Negotiation focus for some new orders has softened slightly, and actual transactions may still allow for a narrow discount space.

Market outlook: The cost support from the raw material side remains acceptable, while short-term market wait-and-see sentiment is relatively strong. Prices are expected to continue the pattern of overall stability with slight fluctuations. Therefore, tomorrow’s average market price for anatase titanium dioxide is expected to be around RMB 13,600/ton, and the average market price for chloride-process titanium dioxide is expected to be around RMB 16,800/ton. The negotiated price fluctuation range is expected to be around RMB 300-500/ton, and the actual transaction price will mainly depend on order volume and manufacturers’ inventory levels, to be negotiated case by case.