What price do titanium processing enterprises hope for sponge titanium?

Recently, the reporter visited a number of titanium material processing enterprises in response to the successive diving of titanium sponge prices, and visited more than 10 titanium material processing enterprises in Baoji China Titanium Valley alone. The public enterprises are puzzled about the diving price reduction of sponge titanium. On April 9, the price quoted from 81,000 yuan / ton hit 73,000 yuan / ton, a decrease of nearly 10%. On April 13, another 66,000 yuan / ton appeared. Quotation, a decline of nearly 10%. The actual transaction price may be even lower at around 60,000 yuan / ton. Such a magical price trend is playing with heartbeat.

Such a cliff-shaped quotation has disturbed the price trend of the sponge titanium enterprise itself, as well as the price trend downstream of the titanium processing market, causing customers to worry about "how to sign a contract with unstable prices and uncontrollable costs." The reporters interviewed in Baoji are basically titanium processing enterprises with good business performance. They are worried that sponge titanium enterprises will continue to hit prices with each other, and will also cause downstream customers to worry about continued price hits. It is generally believed that, rather than holding a group and meeting the price, why not reduce each other's production in moderation? Holding prices in a group is contrary to market rules, and it is the supply and demand of the market that only moderately reduces production.

In an interview with Baoji, the reporter received a call from a middle-level staff responsible for the sales of a sponge titanium enterprise to consult the price trend of sponge titanium since 2000, especially the output and prices from 2000 to 2004, and asked what was the reason for this sharp price reduction. ?

When interviewing the chairman of a certain company in Baoji, the sales staff knocked on the door and reported that a certain titanium company was selling at a bargain price, and asked the chairman whether the price reduction was also promoted? The chairman said that our company's products are of good quality, don't fight the price war with others, and adhere to the company's principle of always doing high-quality products over quality.

The last sentence points out the theme, what is the price of titanium titanium for titanium processing enterprises? In fact, just one word: stable! With stable prices, the market will not be disordered and the industrial chain will develop in an orderly manner. Once the price chaos is bound to kill each other, everyone stays in the mind of increasing prices in 2019 to implement increments and relying on the non-binding "Hanging the Price" agreement has no substantive meaning.

Interview notes:

The epidemic situation will definitely change the economic structure. The epidemic situation will have a short-term impact on the economy, but the epidemic situation will inevitably adjust the development order. In the face of the epidemic, do not be pessimistic, but objectively analyze the reasons for the price drop of sponge titanium diving.

1. Is there any sponge titanium stock in the upstream and downstream in 2019?

2. Is there a phenomenon of excessive production increase in early 2020?

3. Does it take time for the downstream production increase due to the epidemic?

The sudden outbreak is not a basket, don't put any problems in it! Immunity is needed in front of the epidemic, and "immunity" is also needed for enterprise development! Don't be too pessimistic about the impact of the epidemic. The titanium market is still there. At present, the short-term impact may have an accelerated adjustment and recovery in the later period. Because, after every plague, disaster and even the wounds of war, society will move forward in readjustment. By analogy, in the financial crisis of 2008, titanium prices continued to fall, but the demand for titanium market grew slowly. The 2020 epidemic appears to be the beginning of the decline in titanium prices, and may soon open another door to the titanium market for promotion and application (please pay attention to the reporter ’s interview with Wang Wensheng, chairman of Baotai Group, on the "two things" in the development of civilian products).

Closing a door must open a window. This is true for the epidemic, as is the market. In the future, the strong "immunity" enterprises will definitely promote the healthier and sustainable development of China's titanium industry in the reshuffle.