In 2023, the overall characteristics of titanium dioxide products are still oversupply: during the year, many factories added new production capacity, and the overall supply scale of the industry increased; but the corresponding end point downstream new investment increment is insufficient, the demand side is limited for supply digestion, and the industry supply pressure is not reduced.

　While the overall price is running at a low level, seasonal changes in supply and demand make prices show the characteristics of ups and downs in stages.

First of all, the domestic titanium dioxide market price trend is roughly divided into four stages: two consecutive ups and downs: bottom rebound upward (January-May) - summer expectations weaken (June-July) - autumn stocking starts (August-October), winter wait-and-see downward (November-December) Overall, the annual price formation logic is still composed of supply and demand, costs and expectations.

　　At the beginning of the year, prices were basically at the low level of the whole year. From January to March, the market had basically digested the long-term weak bearish demand side. The market supply and demand side gradually turned into a tight balance state, superimposed by the impact of seasonal demand increase, the supply and demand game was relatively relaxed, and the upstream raw material prices rose slightly to provide stronger support for titanium dioxide. The market price rose steadily from March to May.

　　With the completion of the release of stage demand, the cooling of market transactions and the accumulation of supply-side inventory in June-July led to a slight correction in prices. However, due to the weakness of prices in June-July, the load reduction of titanium dioxide plants was more obvious. At this stage, the downstream off-season stockpiling was concentrated, and the market supply turned tight after the inventory digestion was rapid. Coupled with the rise in raw material prices, the supply-side price increase conditions were met, and the price rose in August-October.

　　From November to December, the autumn release of the market demand side is completed, and the actual consumption of the downstream in winter is low. The market price may turn into a downward period as demand weakens and the transaction market cools down. It is expected that in 2023, the average price of rutile titanium dioxide from sulfuric acid method will be 15,743 yuan/ton, down 11.99% from the average price in 2022; the average price of anatase titanium dioxide during the year will be 13,673 yuan/ton, down 16.00% from the average price in 2022.

　　At the same time, since the bearish impact of weak long-term demand has been basically digested at the beginning of the year, the price rise and fall during the year is mostly due to the seasonal supply and demand changes caused by changes in the downstream of titanium dioxide, and the overall demand for goods is slightly ahead, that is, most downstream choose to pick up goods at low prices before the peak season (March, August), which also prompts the price increase to be slightly ahead of our traditional peak season division, which is a more prominent new feature of the market this year.

　　In 2024, the new production projects of titanium dioxide products continue to be released, but the end point coating industry has entered the stage of stock development, so the change of the status quo of titanium dioxide products and downstream oversupply still needs time to digest, and the profit of the industrial chain may continue to be transferred upstream. At the same time, the price of raw materials is influenced or enhanced downstream along the industrial chain, and the low-level operation stage of the price may continue.