Titanium tetrachloride price increase
Domestic titanium tetrachloride prices have been raised again, which has once again pushed up the cost of titanium sponge.
This morning, a large northern enterprise raised the price of titanium tetrachloride by 200 yuan/ton, and other titanium tetrachloride enterprises followed suit. This will increase the unit cost of sponge titanium by 800-900 yuan / ton, so that the sponge titanium market will once again bear the price pressure.
At present, the domestic mainstream sponge titanium price is 0#67,000 yuan / ton, and has been raised by 4000-5000 yuan / ton in the past month. The rapid rise in prices has led to an increase in market risk, and some domestic titanium processing companies are also considering the possibility of purchasing sponge titanium from abroad. As the rising price of titanium sponge is mainly due to the rising cost of raw materials, the dividends enjoyed by sponge titanium enterprises in the price increase process are limited, and the biggest beneficiaries are titanium tetrachloride and magnesium ingots.
There are three main risks caused by the rising price of titanium sponge. First, the continuous increase in the price of titanium sponge will inevitably push up the price of titanium, which in turn affects the elastic demand in the market, causing some end products to shrink due to excessive prices. Second, excessive price increases may stimulate industry expansion, and some zombie production capacity may be re-awakened. The capacity that has been adjusted in the past few years is in danger of being out of balance again. Third, the excessive domestic price will trigger the import substitution effect. If the market share of domestic sponge titanium is gradually replaced by imported products after the price rises, domestic enterprises will face a new round of market competition, and the phenomenon of low-priced sales may Reproduce.