chemical plant

Chemical prices plunged in China market

The price of thermal coal has dropped from its highest price of USD312/mt on October 19 to USD166 /mt in the China market. The price is almost down by 47%, nearly half. The price drop of thermal coal also dragged down the price of coal chemicals. Meanwhile, this dropping trend also inspires the spot market The price of PVC, methanol, styrene, isobutylol, and new glutaradiol has a sharp downward trend, which makes a surprise in the market.


chemical plant

The price of coal chemical products has fallen sharply with the collapse of the coal price

With the Chinese government taking all measures to maintain a steady supply of coal and electricity power, the coal price has dropped accordingly. And this also becomes the key reason for the sudden price dropping in chemicals and other chemical raw materials. Epoxy resin has had a continuous sharp increase in the past months. But its price has lowered recently. The price of solid epoxy resin is USD4200/MT, which is USD300/MT lower than one week ago. With the price dropping, the downstream customers are expecting loa lower price of USD4100 or a lower price of USD3950. And this also makes the market transaction atmosphere weak.

In addition to the epoxy resin, many other chemicals such as epoxy chlorpropamide, phosphate, yellow phosphorus, and butadiene have a price decline after China’s gold nine silver ten sales season. since early November, prices began to decrease. The price has plunged more than USD1300/MT on week from USD5080 to USD3780/mt. This makes the whole chemical industry into winter beforehand. The price of DMC was USD6300/mt, down by USD1000/mt from the previous week, and the price of silicone oil (Polydimethylsiloxane) was USD6500/mt, which is 34% down from the highest point. Also, The PVC futures has fallen five times by the daily limit. With the future price continuing to weaken, it is negative for the spot market. And now the quotation of PVC in the n future market and spot market two weak spot markets was in chaos. In some regions, the price of PVC has dropped to less than 140000/MT. Under the suppression of falling futures prices, traders are selling stocks immediately.

From the current series of actions of restraining unreasonable price increases of bulk commodities, the price increase expectation of chemical raw materials in the next six months is very limited, and most products will gradually return to a reasonable range.

With the impact of the price reduction news, real order is very limited when some enterprises quote at a high price. The less transaction also dragged the market down and the expectation of transactions is weakening. Some Industry experts said that one of the reasons for the price decrease is that the newly expanded production capacity leads to an obvious supply increment. And the buyers have a strong bearish mood on the transaction with the supply and demand imbalance.


Chemical products

40 chemical products have a drop in price with a decrease of more than USD130/MT 

With the continuously increased ease in the recent chemical market, there are many chemicals with sudden price drops. And many of them are the products with hot increase and reach their historic highest point. This rapid change has made buyers unpredictable.

The price of liquid ammonia was USD620/MT, and there is a price drop of USD130/MT 20% less compared to early August. With the impact of enterprise maintenance and shortage of domestic goods, liquid ammonia experienced a soaring market in mid-to-late July.  But the increase didn’t last long, and the price of liquid ammonia continued to decrease. With the poor traffic situation and high inventory caused by the epidemic, together with the high output at high operating, as well as less demand, the price of liquid ammonia dropped again and again.

Previously, the price of trichloromethane had started a speeding process. The price soared to USD546/MT, and even over USD635/MT. There was a single-day increase of 8.7%, which was the highest one-day increase in the past 10 years. But with the high-temperature weather cooling down, the demand from the refrigerant market becomes weak, domestic sales and foreign trade are not as expected, and its raw material liquid chlorine price is low. With all these impacts, trichloromethane prices dropped by 16% from early August.

Since the beginning of 2021, the price of PTA cost-end crude oil and PX has been increasing, and its auxiliary material acetic acid also has had a significant increase. Till the end of July, the PTA price was more than USD800/MT and some large-scale factories even cut orders due to insufficient supply. However, with the operation of new PTA devices, the supply will increase. And now the domestic PTA price has dropped below USD710/MT. Its price has dropped by 13% compared with the beginning of August.

Due to the influence of the Shanxi flood, many urea factories in Jincheng stopped production. With the reduction of the market inventory and other multiple positive factors, the domestic urea spot market had a rise, and the loareaurea prices hit a new high. But with the end of peak agricultural season, and the industrial demand is insufficient, the market trend of urea is depressed. The price even drooped two times in one day. To ensure order volumes, the big factories have offered preferential price policies. Thus, the actual transaction price is much lower than expected, and the price decreased by USD60/MT or 12.37% from the beginning of August.

The export market of domestic MMA has expanded rapidly, and the monthly export volume has reached new highs. With more MMA export, fewer imports, and less output, the market inventory of MMA in China market has decreased sharply, and the price has exceeded USD2222/MT. But by the end of Oct., the buyers are mostly watching, and the negotiations were deadlocked. And the price is down by USD270/MT from the beginning of August with a drop of around 11%.

Iso octanol prices had soared to USD2950/MT, up by 156% from the same period last year. While due to the weakened raw material price, and the supply increase, its prices also fell slightly. The newest offer is now decreased by USD200/MT with a decrease of 6.9% from early august.

The price of ethylene glycol has rushed to USD950/MT at a new high. But due to the rapid decrease in the downstream polyester end. The market expectation is not optimistic. Along with the supply recovery, the tight market inventory situation has finished. Its current price is down by USD60/MT at around 6% from early August.

It is reported that Wanhua Chemical, BASF, Shanghai Hensmai, and Dow Chemical have all raised the price of MDI products. The supply of MDI is also tightening, and its prices have increased from June 2021, soaring from USD1900/MT to USD4500/MT. This price is almost the highest in nearly three years. But recently the MDI market atmosphere turned weak, and the price can be negotiated. The current market offer has decreased by USD200/MT around 5.64% from early August.

Ethyl acetate prices reached USD1450/MT and are highest in a decade. But the recent transaction price of the main factories has declined, and the trading atmosphere is not positive. The current price is down by USD80/MT and is around 4.91% lower compared with early August. The ethyl acetate in China market may continue to weaken in short term.

In the silicone industry, the price is decreasing continuously since early November. DMC price has dropped to USD4900/MT, which is almost half of the price from the highest point last month. With the DMC price plunging, the price of dimethicone silicone oil and 107 RTV also dropped. The newest silicone oil PDMS price is around USD6900/MT. The sudden price drop makes the procurement stop the purchase and those who bought at higher prices would have a stock loss.

In the titanium dioxide industry, with the winter coming, construction coating consumption is decreasing. And the main market price of Rutile titanium dioxide like Lemon 996 is USD 3,200/MT. Other brands have a price of USD3100 to USD3300. with the demand weakening, the price of titanium dioxide can be negotiated as per the orders.

The organic pigment price also stopped increasing and some item has a slight price drawback. The price of pigment yellow 74 has dropped from USD10.95/kg to USD10.50/kg. Products like Pigment Yellow 12 and Pigment Yellow 13 also stopped for a further increase.

A collection of the price declines of different chemical products

The price of dimethyl carbonate was USD 1370/MT, down by USD 740/MT from the previous week.

The phosphate price was USD2000/MT, down by USD690/MT from the previous week.

The liquid epoxy resin was quoted at USD5000/MT, down by USD630/mt from the previous week.

The price of propylene glycol was USD3450/MT, down by USD330/MT from the previous week.

DMF was quoted at USD2570/MT, down by USD280/MT from the previous week.

Butadiene was quoted at USD1060/MT, down by USD250/MT from the previous week.

MMA was quoted at USD1960/MT, down by USD20/MT from the previous week.

The price of natural anhydride was USD 2400/MT, down by USD 130/MT from the previous week.

Liquid chlorine price was USD200/MT, down by USD110/MT the previous week.

The caustic soda price was USD190/MT, down by USD60/MT from the previous week.

Phenol was quoted at USD1500/MT, down by USD60/MT from the previous week.

The PTA was quoted USD770/MT, down by USD56/mt from the previous week.


From the above data, it is not difficult to see that the recent decline in chemical products mainly focuses on the previous chemical products with a sharp increase, such as hydroxybenzene, ethylene glycol, polymerized MDI, ethyl acetate, etc. This is also in line with the previous market analysis which says that chemical products would not always be on the rising side and would come down after it reaches the peak.

chemical news


Why do the prices of chemical products plunge?

The sudden plunge in tin prices of chemical products, the experts say is related to the recent huge changes in the chemical industry chain. The supply and demand situation between coal and other energy terminals is quietly changing. The downstream demand is lessening, and goods transportation is blocked in some regions due to heavy snow. All the different reasons jointly lead to the diving of chemical product prices.

With the upstream raw material, coal price has halved, and the pressure on the chemical enterprises has been lessened to some degree. But the complex downstream situation still makes chemical enterprises anxious. With the end of the year getting closer and closer, the dual control policy on energy consumption is also becoming stricter. With the power limit, the order of downstream industries such as coating, plastics, clothing and textile, foreign trade processing industry, and other industries are suppressed. So, the transaction atmosphere in the market is not positive.

With the accumulation of inventory, the price has a trend of moving downward. With the temperature drop in the fourth quarter, the production and sales of many industries have entered into the off-season, and they have resistance to the high cost of upstream raw materials. At the same time, with the mentality of buying at the use and not buying at decreasing, the purchase is very limited and a shrinkage in the transaction is very obvious. With downstream customers continuing to negotiate for discount prices, the market transaction is at a dead block. With the transaction pressure and pessimistic views on the market, some chemical enterprises have prices continuously.

Some chemical enterprises said that for the last two months of 2021, the focus is no longer on securing more orders but to maintain a stable capital chain. With the uncertain industry situation, chemical enterprises choose to stabilize the old customers. For the new customers, they will only receive cash orders. They may also limit production and sales to avoid risks and maintain a stable capital chain to the greatest extent. Prices are no longer the key at the present. How to ensure to pass the winter safely and continue to spend in 2022 is the key.

titanium dioxide for paint 1

Why price of TiO2 is highest in last 10 years?

What is function of Titanium Dioxide in paint, ink and plastics?

Titanium dioxide is mainly used raw material in formulation of coatings, ink and plastics. 60% of the application of titanium dioxide is in coating globally , especially rutile titanium dioxide. The paint with titanium dioxide as raw material has high hiding power, bright colors, high tinting power, and low dosage.,etc. It can protect the stability of paint, enhance the adhesion and mechanical strength of paint film. It can also prevent ultraviolet rays, the cracks and moisture penetration, which can extend the life of the paint film.


What is latest situation of titanium dioxide production in China?

As per statistics, there are 41 full-process producers of titanium dioxide can maintain normal production across China and their output can reach 3.18 million tons, with a year-on-year increase of 7.69%.


Till 2019, in the total capacity of 3,180,000 tons titanium dioxide, Rutile titanium dioxide has an output of 2,545,000 tons,which accounts for 80.01%; Anatase titanium dioxide has an output of 518,000 tons, which accounts for 16.28%; Non pigment grade and other grades have an output of 118,000 tons, which account for 3.71%


From the area of production output, the area mainly focuses in Sichuan, Anhui, and Shandong. They are the top three in China’s titanium dioxide production capacity. From the statistics of China’s titanium dioxide production areas, from January to November 2019, Sichuan, Shandong, and Anhui ranked the top three in titanium dioxide production, accounting for 22%, 17%, and 12% of the total domestic production, respectively.



With the quality improvement of China’s titanium dioxide and shortage in capacity of foreign titanium dioxide, the export of China titanium dioxide have continued to increase in recent years. In 2018, export volume has reached 907,200 tons. The countries exported to include the United States, India and Brazil. In terms of imports, China’s annual import of titanium dioxide was around 209,200 tons. The main countries imported from are Mexico, Australia, the United Kingdom, etc. The titanium dioxide imported are mainly medium and high-end grades. Following is the change of import and export volume from year 2010 to 2019.


How is the sharp increase of TIO2 price since Year 2020?

In 2020, the annual production capacity of titanium dioxide in China has reached 4,17 0,000tons. The largest producer in China Titanium Dioxide industry is Lomon Billion in terms of production capacity. In recent years, Lomon Billions has started the acquisition of small and medium-sized titanium dioxide companies with a total capacity over 1,000,000 tons and has occupied 24.22% of the total market share in China by 2020. The market share of CNNC ranks second in China, with a total output of 340,000tons, which accounts for 8.39% of the total market share.

From the end of March to mid-April 2021, the price of titanium dioxide in China has new increases . The top companies both in China and Abroad have announced new price increase together, and many titanium dioxide producers have issued price increase notice to customers, such as Lomon Billion Titanium Dioxide, Huiyun Titanium Dioxide, CNNC Titanium Dioxide, and Jinpu Titanium Dioxide.,etc. In general, from July 2020,the price of titanium dioxide has risen for 10 months continuously. And the price has reached a new high since 2018, which is close to the level in year 2010.

Since July 2020, with the price increase of titanium ore, and the recovery of domestic and foreign demand, the price of titanium dioxide has gradually risen from the early stumble. Till Q1 of 2021, the TIO2 price gets three consecutive increases. The top company has issued price increase announcements for 7 consecutive times. This drives the price increase the the whole titanium dioxide industry. It also shows there is a steady boom in the titanium dioxide industry.


As per China Media, the EXW price of main suppliers of Rutile TiO2 in China is around RMB18200-19800 per ton in March, price of anatase titnaium dioxide is around RMB15000-16500 per ton, and price of Chloride grade Titanium Dioxide is RMB 19000-20700 per ton.



What are the main reasons for the price rising of Titanium Dioxide from China since 2020?

In general, there are mainly two supporting aspects in this round of price recovery in the titanium dioxide industry. The first reason is the fast increase of oversea demand. Coating and paint market is the major market for titanium dioxide. For example, in the United States, the number of newly built private residential houses have hit a record high in 2020. Meanwhile, the overseas capacity supply and the operation rate of titanium dioxide is limited due to Covid 19. These have formed a strong pull on the export of China’s titanium dioxide. The second reason is that there is a downturn in the titanium dioxide industry during the past few years , and the global and China titanium dioxide giants have accelerated acquisitions and mergers, which leads to a high industry concentration in titanium dioxide..

From the global TiO2 capacity perspective, the market share of global giant leaders has decreased and China TIO2 suppliers have speed up their seizing of overseas markets. Affected by the Covid 19, both sales and production of major global titanium dioxide manufacturers has declined. The sales growth rates of Tronox,Chemours, Venator and Kronos in the first year of 2020 were: -12%,+5%, -11% and -14% respectively. Chinese companies accelerated seizing of global market share of titanium dioxide. The supply of global TIO2 leaders will be still limited, and there is very less new titanium dioxide supply volume from China.

But with the gradual recovery of main global economies, the demand for TIO2 is going up. Also, both real estate in China and US are on the increasing side. So, it is expected that the total global demand on titanium dioxide will be higher than in 2020 by 7-8%. The intensity and sustainability of 2021 titanium dioxide boom is very optimistic.

From January to March 2021, the output of China titanium dioxide was 943,000 tons, and the year-on-year increase is 41.5%; and export quantity was 201,000 tons, and the year-on-year increase is 15.5%; The import volume of titanium ore from January to February was 631,000 tons, and the year-on-year increase is 14.8%. The global titanium dioxide manufacturers are not stable in output due to raw material problems, but downstream demand is increasing globally. Coupled with price increase of Titnaium ore and slag, the titanium dioxide price is about to break through the historical highs.Now It is just-needed stocking season from end-users, and the orders from major paint manufacturers in Q2 are signed at high prices. It is expected that the titanium dioxide industry will maintain a high boom Q1 and Q2 of 2021.


Till currently, the price of titanium dioxide is around USD3100-3200 from different factories, and the production plan is till May and June. The price still remains high. The local demand from China and overseas demand keeps stable, most China suppliers of titanium dioxide are still positive with the price trend in Q3 and Q4 of 2021. Meanwhile, the environmental control in Shandong and Anhui province will make the supply still be short, and there is still price increase space in the coming months.

In addition to the factors of foreign demand and raw material increase, China’s production capacity upgrade is another major driving factor that has led to such a fierce price increase cycle for titanium dioxide.

According to datas, China has the largest production capacity of titanium dioxide in the Asia-Pacific region. In 2019,  the production capacity of China’s titanium dioxide has accounted for 45.3% of the global total production capacity. But from the perspective of capacity of a single company, there are still many small companies with an annual capacity less than 100,000 tons.

According to the statistics, by the end of 2020, China has 42 full-process titanium dioxide production companies. Among them, 12 titanium dioxide enterprises have an output over 100,000 tons in 2020, and 30 of them have production capacity less than 100,000 tons. The total production capacity of titanium dioxide from those who produce more than 100,000 tons is around 2.5722 million tons. It accounts for 73.24% of the total output in China titanium dioxide industry in 2020.



As per industry expert, the titanium dioxide companies in China are in the stage of prodcution line upgrade and capacity expansion at present. Now the production process of titanium dioxide  is still dominated by the sulfuric acid method, and around 42.5% of the global titanium dioxide are produced by the chloride process. But in China, there are 84% of the production capacity by sulfuric acid method which has high pollution. With China’s environmental protection policies becoming stricter, many small production lines have been shut down, and the construction speed of new production capacity has also been restricted. Thus, the total production capacity by sulfuric acid method has declined in recent years.

In addition, from 2021 to 2023,there is almost no new global titanium dioxide capacity in other countries. Along with production line upgrade and supply reduction, the Matthew effect will be intensified globally.

What would be the price trend of China Titanium Dioxide for the Q2,Q3,Q4 of 2021?

From current supply and demand situation in China and abroad, the price would still be remaining on higher side. As the supply situation out of China is still in tight, with Covid-19 situation becomes more serious in some countries. And there would be new demand comes up after economy recovery from those countries with better control and vaccine taking. Let’s expect a more virtuous supply and demand circle in titanium dioxide industry and chemical industry.