Since 15th week, the index started to fall from 3154 to 2944 of now. Is the market turning down?
Yes it is turning down. But very hard to tell how long this could last. Two main driven factors as:
- The strong US Dollar Index. Since the middle of April to now, the US Dollar index reached 20years high at 104. About 4% increasing.
- The lock down in Shanghai leads to the drop of freight. Since 1st April, the lock down in Shanghai hit hard on the global sea transportation. As the biggest sea port on earth, the lockdown shrinks the vessel space booking. And the shipping line has to reduce the cost to get more space as filled as possible.
As you may noticed, this time the price fall has nothing to do with the cost. As to the China local index of tio2, the manufacturing cost has been in high ground for monthes, and with the war impact on the energy and global ilmenite cost. The leading manufactures including LB groups, CNNC HUAYUAN, has to increase their price to cover the daily rasing cost. The rising cost also leads to a lower operation rates.
So without the decreasing cost, we can hardly expect a continue droping of the price.