In late December, as 2024 draws to a close, the mainstream market price for titanium dioxide has remained stable, with little change in trading activity compared to last week. This stability is primarily due to the fulfillment of terminal market orders from the previous week and the signing of new orders by other users.

Titanium Hai made a surprise increase of 500 yuan/ton. Although it doesn't have the same influence as the major producers and it's hard to claim it as the absolute lowest point, the current price level is already relatively low. A price increase against the trend always faces numerous challenges, and the actual increase will depend on individual order situations. This price increase notice feels more like a wish fulfilled! The new order situation this week is similar to last week, mainly due to some users' routine year-end stockpiling and bottom-fishing based on their own market judgments. The supply side's price market is slightly chaotic, with some observing and stabilizing operations, others indirectly raising prices by canceling preferential policies, and others experiencing a slight decline in mid-month settlement prices. Overall, the changes are very minor, ranging between 100-300 yuan/ton. It is precisely because of these recent market changes on both the supply and demand sides that shipments and turnover have slightly accelerated, showing signs of a potential price increase. Currently, the price market remains weak, with producers facing significant pressure and the need for adjustments, mainly due to the low price levels and the firm support of production costs. This "double pressure" of cost and price has led to a strong desire among some producers to halt production for maintenance. Some have already started, and others are on their way, resulting in backlogged shipments for producers in regions such as East China and Southwest China. Additionally, the favorable market for the by-product ferrous sulfate encourages producers to maintain high operation rates. Even if titanium dioxide is unprofitable, at least ferrous sulfate remains profitable.

Every producer calculates costs differently, and whether they profit or lose can be a matter of perspective. Producers are reluctant to continue lowering prices, given their difficult situation, but ultimately, it depends on the terminal market conditions and whether producers can reach a consensus to maintain the current price levels. Each can operate under stagnation, but if there is a widespread drop, it could lead to a low-level standoff, forcing major producers to weaken. Therefore, except for them, price adjustments by other producers are merely for "atmosphere," with limited impact on the overall price level.

This week, the domestic titanium dioxide price market has been weak. Yan Tai industry analyst Yang Xun believes: The trading market has seen a wave of stockpiling/hoarding operations lasting about two weeks, causing some producers on the supply side to experience tight spot supplies. There are also instances of order fulfillment, mainly among producers in regions such as Southwest and East China. The main reasons for this situation stem from channels and downstream users' own rigid demand and market forecasts, in addition to the influence and drive among peers, greatly increasing the possibility of a halt or even a rebound. Facing such a market, besides maintaining calm, it is still necessary to observe the overall market situation. Short-term and small-scale disturbances should not be interpreted as a complete recovery in demand; there is still a large area of demand in a wait-and-see or "exhausted" state, and of course, there is the consequence of preempting future market demand. At this stage, the price market still maintains a general direction of weakness, with the supply side focusing on shipments. The bullish driving force of the "atmosphere group" is limited, more at the level of psychological expectation, reflecting the supply side's urgent hope for a price increase. In reality, it still depends on the latest price policies of the major large-scale producers.

In the short term, the trading market will still be dominated by low prices, mixed with a few producers holding firm within a range of 100-300 yuan/ton. It is still important to pay attention to the order acceptance and inventory situations of the major large-scale producers, as well as their plans for the cross-year market. The titanium dioxide market still requires "patience and external promotion," with specific transaction prices depending on individual orders, volume, and payment methods.