Analysis of China's titanium ore market in the first three quarters of 2021

2021 first three quarters of China's titanium ore prices as a whole is rising, to small and medium-sized manufacturers, for example: three quarters of the market price is falling up, the end of the quarter than the beginning of the quarter prices rose from 2235 to 2428 yuan / ton, the price increase of about 8.68%; the first quarter to three quarters, prices rose from 1940 to 2428 yuan / ton, an increase of 25.15%; 2021 first three quarters than The price rose by 804 yuan in the same period last year, an increase of about 56.66%. From Table I to Table III, it can be seen that the prices of titanium ore in China have increased in various degrees in the first three quarters of 2021.

Table 1: Comparison of quarter-end at the beginning of the third quarter of 2021

Table 2: Average price in September 2021 compared with January

Table 3: Average price of titanium products in January-September 2021 compared with last year

Price Analysis 

In the third quarter of 2021, the overall price of China's titanium ore market is rising trend, the price of titanium ore in large plants stable upward, individual small ore prices were first down and then up; July small ore prices continue last month's weak trend, individual titanium ore prices have 200-280 yuan / ton drop; into August after the small ore prices continue to rise, prices rose to the end of September 2435 yuan / ton, prices rose by about 380 yuan / ton. 

In July, the price of large plant titanium ore stable mainly for the stability of the manufacturer's clientele, market transactions, large plant titanium ore price stability; small plant prices fell mainly for the Guangxi area power restrictions and production restrictions, market demand reduced, some miners have panic, prices have fallen; by the impact of environmental protection inspection, some mining plant production restrictions, coupled with the Panxi plant overhaul, the overall market price of titanium ore upward. August titanium ore market start low, and In September, the environmental protection group stationed in the Panzhihua area, titanium ore production is still low, and the downstream titanium dioxide market is affected by power restrictions in the middle of the month, the market demand shrinks, and the titanium ore market in the Panxi area is weak in both supply and demand. Market prices are firm. After entering the titanium ore market in October, some prices have fallen, mainly by the downstream market demand is weak and iron ore market downturn, the titanium ore market is weak; as the end of the year approaches, some downstream enterprises have the intention to stockpile, titanium ore market inquiries increased, low prices have stopped falling phenomenon, titanium ore market stabilization. 

The first three quarters of 2021 imported titanium ore prices continued to rise, the end of the third quarter prices rose $110-130 / ton compared with the beginning of the year, up 36-50%. To the world's largest titanium ore companies Kenmeyer resources prices, for example, the first quarter prices were upward trend, prices rose from $ 300 to $ 30 / ton, up to $ 330 / ton, or 10%; the second quarter prices continue to move upward, prices rose from $ 330 / ton $ 30 to $ 380 / ton, or 9%; the third quarter prices continue to move upward, prices rose from $ 380 to $ 30 to $ 410 / ton, the price rose 7.9%. Imported ore prices rose mainly because: the international market titanium raw materials tension, tight supply of imported titanium ore; coupled with the South African riot RBM is still not fully recovered, titanium raw materials continue to be tight, and the outbreak of the epidemic in Vietnam, the titanium ore market transportation has an impact on the amount of imported titanium ore has been significantly reduced; and the high price of sea freight and container tension and other issues, the price of imported titanium ore continued to rise. 

Post Market Analysis 

Affected by the double control, titanium enterprises upstream and downstream are restricted, titanium dioxide enterprises, although limited production, but the overall production, titanium ore demand, according to Tuoduo data show that the first three quarters of 2021 titanium dioxide production in 2,819,600 tons, an increase of 303,200 tons over the same period last year; the first three quarters of 2021 total titanium sponge production in 108,500 tons, an increase of 27,800 tons over the same period last year; corresponding to 2021 titanium ore demand has about 800,000 tons of growth. The first three quarters of imported ore compared with the same period last year increased by about 660,000 tons, about 400,000 tons of imported concentrates, domestic ore increased by 400,000 tons. The current downturn in the iron ore market, domestic enterprises inventory pressure, production will decline later, will affect the amount of titanium ore, downstream in the fourth quarter titanium dioxide and then new projects put into production, the fourth quarter titanium ore supply is still in a tight situation.