Small-scale stocking and hoarding may lead to two possibilit-Suzhou whitearrow titanium industry co.,ltd.

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Small-scale stocking and hoarding may lead to two possibilit

2024-12-23

In mid-December, the major players in the titanium dioxide price market maintained price stability. Individual producers adjusted prices flexibly according to their own situations. As a result, the price market was somewhat chaotic this week. Some maintained their prices in a disguised manner by canceling preferential policies, while others saw a slight decline in the settlement prices in the middle of the month, though the ranges of change were very small. On the one hand, the slow-paced destocking through production curtailment and shutdowns had achieved certain effects. On the other hand, supported by costs, there was very limited room for prices to continue to weaken. Pricing in different stages was also carried out by adjusting prices according to their own situations while keeping a watchful eye on the market.

Let's take a look at the demand side. In the most recent week, a small number of distributors and end customers began to take actions. This was mainly because the Spring Festival in 2025 will come relatively early, so they had plans to stock up in advance. On the other hand, combined with their own judgments, their intentions to buy at low prices and stockpile had already been revealed. Of course, these were just individual behaviors and might not be common.

Both producers and distributors saw a slight acceleration in delivery and turnover speeds this week, which was mainly due to the procurement plans of some downstream enterprises. In the price market, the actual orders also showed polarization. On the one hand, the market was highly competitive internally, with inventories piling up at some supply ends, and the order prices were relatively low. On the other hand, due to the impact of previous production curtailment and shutdowns, some producers were short of spot goods, and the actual order prices saw a slight increase. The trading market was filled with two voices of "raising prices" and "cutting prices".

In fact, such stocking and hoarding behaviors have a certain driving and contagious effect. It cannot be ruled out that due to the concentrated increase in orders, there may be a tight supply situation for products, and there is also the possibility of a slight increase in the actual order prices. The market prices may be pushed up in advance, and then have a positive impact on producers. Therefore, supply and demand remain the most crucial factors in the rise and fall of the price market, while other factors are just like members of the "atmosphere group".

This week, the major players in the domestic titanium dioxide price market were operating weakly. Yang Xun, a titanium industry analyst at Yantai Titanium, believes that due to a small wave of stocking/hoarding operations in the trading market, the market's delivery and turnover speeds have accelerated slightly. Therefore, there are two obvious possibilities for the subsequent market.

Firstly, the operations of a small number of players will be beaten back to their original state by the weak demand. The demand market will still be dominated by a wait-and-see attitude and weakness.

Secondly, driven by these operations, the atmosphere for taking goods will gradually heat up. First, the prices of products in short supply will increase slightly, and then the positive impact will gradually expand. The stabilization or even an earlier end to the decline in the price market may come.

Currently, some producers in regions such as the Southwest have already experienced tight spot supplies, and the situation of orders queuing up for delivery is becoming more and more common. In the short term, without significant large-scale goods circulation, the titanium dioxide price market may continue to operate weakly. The actual situation requires close attention to recent inquiries and order-receiving situations, especially those of major large-scale producers. As for the specific actual order prices, they will be negotiated on a case-by-case basis depending on the order, quantity and payment form.