Why titanium dioxide price continues to rise in China?

Near the end of 2016, titanium dioxide price is surging in China, bringing heavy operating pressure to the downstream coating industry. Just like us as a professional water based pigment paste manufacturer, what we can do is just increasing the price of white pigment paste to resist cost pressure.

Google searches "titanium dioxide price",  you can see the rising information mostly.

Why does titanium dioxide price rise so rapid?  Maybe we can analyze the reasons for it like this:  

The main raw materials of titanium dioxide:  titanium (high titanium slag) and sulfuric acid.  Other auxiliary materials: water, electricity, steam, coal and so on.

According to data monitoring, the domestic market price of sulfuric acid within a narrow range of the main shock in November 2016, the price fell 14.81% compared with the same period last year, sulfuric acid market is weak. So we can know that effect of titanium ore (high titanium slag) cost is the main reason of rising of titanium dioxide price.

In early December, securities analysts have a topics: Henan Billions Chemicals Co Ltd. which is a listed companyChina's titanium dioxide industry: Titanium concentrate ore price is rising and discontinued because of environmental rectification, is expected to continue to boost titanium dioxide prices. An announcement from Henan Billions Chemicals Co Ltd.on December 6, the prices of all models titanium dioxide (including sulfuric acid kind titanium dioxide, chlorinated kind titanium dioxide) would be increased by CNY1,000/ton based on the original prices to domestic customers based on the original prices, and increased by USD150.0/ton to international customers.

Analysts believe that improvement of industry supply and demand pattern, environmental protection pressures and the export business growth, is the main reason for the price rising of titanium dioxide before. November so far, the price of titanium concentrate ore rose again by more than 38%, and the implementation of new transport regulations to bring the increase in freight costs, having led directly to  price rising of domestic titanium dioxide many times.

Discontinued and remediation of Panzhihua vanadium-titanium High-Tech.Area enterprises is also continuing to promote titanium dioxide prices.

Purchasing Manager of Shanghai Caison believes that many of the above reasons causes the domestic titanium dioxide supply tensions. So water based white pigment paste price increasing is a last resort.