TiO2 material shortage has no sign of easing

“Several price increases during the year 　 the prosperity of titanium dioxide continues to improve” –ECONOMIC INFORMATION DAILY,Li Ben, Beijing. 年内多次提价　钛白粉景气度持续提升
“Titanium dioxide welcomes the “price boom” again, short-term demand still exceeds supply.” –Sina Financial, ZhangJia Yun, Beijing钛白粉再迎“涨价潮” 短期仍供不应求
The industry has entered the traditional peak season, titanium dioxide staged a new round of price increase cycleYicai.com行业已进入传统旺季，钛白粉上演新一轮涨价周期
Titanium dioxide business quickly into the fifth round of the year prices surge.163.com钛白粉企业迅速投入年内第五轮涨价潮
“These price increasing letter showing the unstoppable trends of price increases.

The current domestic titanium dioxide market situation:

Now, the domestic price is around 20400CNY/MT, and FOB 3150-3350USD/MT. And in a very tight supply.

“Before Sep. 2021, there could be 2-3 rounds of price increases” by analysts form LMB.
“The strong revocery of China domestic ecomony makes the domestic demand surges and the ilmenite supplier reserves a positive expection of the market showing no intends to lower the price”. by PM of Tinox.

Is there any grades which is less tighter supply?

“Of course, now, LMB R108 sales not as expected, and in recent days, can be purchased domestically. Traditionally, this season is a off-season for tio2, but this year, only those neighbor markets of China shows the sign of off-season.”Pangang Titanium industry

Titanium dioxide welcomes the “price boom” again, short-term demand still exceeds supply. Sina Financial, ZhangJia Yun, Beijing, _Translated by Qiaomai Lang

At noon on May 6, CNNC Hua Yuan Titanium Dioxide Company Ltd. (002145.SZ) issued a letter for the fifth increase in the price of titanium dioxide in the year.

In fact, entering May, listed companies such as Jinpu Titanium (000545.SZ) and Anada (002136.SZ) have also begun to raise the sales price of titanium dioxide, and the price increase in this round remains the same. Recently, the share prices of listed titanium dioxide companies have shown an upward trend. Benefiting from the continued rise in the price of titanium dioxide, the first quarter performance of the leading listed companies in the industry hit a new high during the same period.

An executive of Lomon Baili said in an interview with a reporter from “China Business News” that generally price increases are determined by cost and demand. This year’s consecutive price increases are mainly due to rising raw material costs and strong market demand; especially foreign market demand Further strengthening has made the first quarter performance of domestic titanium dioxide listed companies soar.

Start a new wave of price increases?

In the midday of May 6, CNNC Hua Yuan Titanium Dioxide Company Ltd. issued an announcement stating that the company’s price committee decided that from now on, on the basis of the current sales price of titanium dioxide, the company’s sales prices for various types of titanium dioxide will be raised. Among them, the sales price for domestic customers is raised by RMB 1,000/ton, and the export price for international customers is raised by USD150/ton.

The reporter noticed that since the beginning of this year, CNNC Hua Yuan Titanium Dioxide Company Ltd. has issued monthly announcements on raising the sales price of titanium dioxide. Looking at the leopard, as the industry’s leading company, the continuous price increase of CNNC Hua Yuan Titanium Dioxide Company Ltd. also represents the titanium dioxide industry.

In fact, in addition to CNNC Hua Yuan Titanium Dioxide Company Ltd., the two listed companies of Jinpu Titanium Industry and Anada also raised the sales price of titanium dioxide, and the price increase of the three companies remained the same, which also indicates that titanium dioxide is expected to start a new round of price increases. tide.

Regarding the reasons for the price increase, CNNC Hua Yuan Titanium Dioxide Company Ltd. said that it decided to increase the price “according to the recent market conditions of titanium dioxide and the increase in raw material prices.” Ananda also stated that the company decided to increase prices based on recent domestic and international market demand for titanium dioxide and rising prices of raw materials.

Earlier, Fu Yijiang, deputy secretary-general of the Titanium Dioxide Branch of the China Coatings Industry Association, said in an interview that after the global new crown pneumonia epidemic, the market is optimistic and demand is the main reason for the strong titanium dioxide market. The coatings, automotive paint and other markets have improved recently. Driven the increase in market demand for titanium dioxide, exports will continue to increase.

According to Fu Yijiang’s analysis, the upstream raw material of titanium dioxide is titanium concentrate, and its downstream applications are extensive, including coatings, automotive paint, medicine, food and other industries. The price of upstream titanium concentrate rose by 53% from June 2020 to February 2021. Downstream coatings, automotive paints and other fields are the application areas of titanium dioxide. In 2020, the national commercial housing sales area was 1.761 billion square meters, an increase of 2.6% year-on-year; the recent price increase in the coating industry has been soaring, and the price of titanium concentrate has continued to rise.

According to statistics from Zhuo Chuang Information, as of the end of April, the price of 46% titanium concentrate has been raised by RMB 150/ton from the previous month, with an average price of RMB 2,450/ton; on April 29, Panxi’s mainstream mining companies will guide their new orders for titanium concentrate prices in May. Raise 80 yuan/ton; as of the end of April, the market price of sulfuric acid in Shandong increased by 140 yuan/ton to 570 yuan/ton, and the price in the East China market rose by 60 yuan/ton to 565 yuan/ton. At the beginning of last July, the titanium concentrate was only 1175 yuan per ton.

The price of ilmenite concentrate has risen, and the price of sulfuric acid in the upstream is superimposed. These two major cost pressures have brought greater impetus to the price of the upstream market of titanium dioxide.

The Titanium Concentrate Analyst of Business Club believes that the actual price of titanium concentrate in Panxi is relatively strong, and the spot of titanium concentrate continues to be tight, and some miners are reluctant to sell it. The new price of titanium concentrate may rise steadily, and it is actually single. Discussion.

According to data from Baichuan, on April 23, the mainstream price of sulfuric acid rutile titanium dioxide market was 20000 to 21000 yuan/ton, the mainstream price of anatase titanium dioxide market was 17300~18000 yuan/ton, and the mainstream price of chloride titanium dioxide market was It is 22000 to 24000 yuan/ton.

Fu Yijiang told reporters that with the gradual improvement of the global epidemic, the climax of global resumption of production and work, coupled with the implementation of a new round of stimulus of 1.9 trillion USD by the Biden administration, has hindered the US industrial chain caused by the epidemic. In the context of a rapid rebound in U.S. demand driven by scale stimulus, U.S. imports from China have surged. From January to February this year, Chinese exports soared by 60.6% in U.S. dollars, of which exports to the United States increased by 87.3%. In December 2020, the United States passed a 900 billion USD stimulus package to promote a 10.8% year-on-year growth in US retail sales in January 2021, the highest increase in history since March 1994. It is expected that the 1.9 trillion USD stimulus will further drive the high increase in US imports from China, especially the demand for consumer goods and real estate-related commodities.

At the same time, he said that the U.S., Europe and the “Belt and Road” markets are gradually recovering, and the domestic and international dual cycles are oriented towards mutual promotion, which has become the new strategic direction of the Chinese economy after the epidemic. The demand for domestic and foreign consumer goods and real estate-related commodities will greatly stimulate China’s production output is increasing, and titanium dioxide is a rigid demand product in many fields. From the current global market, titanium dioxide will still be in a situation of “supply exceeds demand” in the short term.

According to the analysis of Zhuo Chuang Information, after the holiday, as expected, the logic of the market price increase in May will be clearer, including direct support from the cost-side raw material price increase and continued tight spot supply support. At present, downstream users on the demand side have also begun. In the face of continuous consumption of inventory, regular purchase plans need to be put on the agenda at the same time. Under high prices, the market outlook may show rigidity, so that in the process of price increases, the game advantages of buyers and sellers will still be biased towards the sellers, and ultimately promote the upward market price. .

CNNC Hua Yuan Titanium Dioxide Company Ltd. also stated that the company will closely follow the price trend of titanium dioxide and changes in supply and demand, and do a good job in adjusting the price of titanium dioxide products in a timely manner. The overall increase in the sales price of the company’s main products will help further enhance the company’s continued profitability, and will help improve the company’s market position and influence. It is expected to have a positive impact on the company’s operating results.

Corporate performance rises

Benefiting from the improvement of the industry’s prosperity, leading titanium dioxide companies performed well in the first quarter.

The reporter sorted out the financial report and noticed that recently, the first quarter of 2021 financial reports released by leading companies such as Jinpu Titanium Industry, CNNC Hua Yuan Titanium Dioxide Company Ltd., Anada, Lubei Chemical and other listed companies in the titanium dioxide industry showed that their performance has achieved substantial growth.

The financial report shows that on May 6, Jinpu Titanium released its first quarter report of 2021. During the reporting period, the company achieved operating income of 574 million yuan, a year-on-year increase of 46.98%; net profit attributable to shareholders of listed companies was 35 million yuan, a year-on-year increase of 1308.05 %. On April 30, Lubei Chemical (600727.SH) released the report for the first quarter of 2021. The company achieved total operating income of 928 million yuan, an increase of 38.73% year-on-year; net profit attributable to the parent company was 107 million yuan, an increase of 136.8% year-on-year.

In addition, on April 26, CNNC Hua Yuan Titanium Dioxide Company Ltd. released its report for the first quarter of 2021. The company’s revenue was 1.236 billion yuan, a year-on-year increase of 49.53%; net profit was about 287 million yuan, a year-on-year increase of 77.29%. Huiyun Titanium Industry (300891.SZ) released its first quarterly report for 2021. In the first quarter of 2021, the company achieved operating income of 319 million yuan, a year-on-year increase of 51.99%. The net profit attributable to shareholders of listed companies was 45 million yuan, a year-on-year increase of 81.25%. . On April 24, Anadar issued a report for the first quarter of 2021. During the reporting period, the company achieved operating income of 406 million yuan, a year-on-year increase of 58.50%; net profit attributable to shareholders of listed companies was 31 million yuan, a year-on-year increase of 28.54%.

Regarding the substantial increase in performance, Jinpu Titanium Industry stated that during the reporting period, the increase in operating income and profit was mainly due to the increase in sales volume, sales price and increase in the sales price of titanium dioxide, the main product during the reporting period, and the increase in gross profit.

Economist Song Qinghui analyzed to reporters that the sharp rise in profits of listed companies is also a manifestation of the industry’s further elimination of backward production capacity in the market in recent years, the continuous increase of industry concentration, and the manifestation of intensive benefits.

It can be seen that in recent years, leading titanium dioxide companies have expanded their layout and occupied market share.

At the end of February 2020, CNNC Hua Yuan Titanium Dioxide Company Ltd. released a 1.6 billion yuan fixed increase plan, and plans to raise funds for the 200,000 tons/year titanium dioxide post-processing project. Subsequently, on April 23, Lomon Baili issued an announcement stating that the number of non-public offerings would not exceed 368 million shares, and the total amount of raised funds would not exceed 4.387 billion yuan for use in titanium chloride slag and chlorinated titanium dioxide. Production and construction and supplementary working capital.

At the same time, in 2020, after Lubei Chemical acquired Jinhai Titanium Industry and Xianghai Titanium Industry, the titanium dioxide business became the company’s largest business. Lubei Chemical currently has an annual production capacity of over 100,000 tons of sulfuric acid titanium dioxide, and is proceeding in an orderly manner with the construction of a production line of 100,000 tons of sulfuric acid titanium dioxide and a production line of 60,000 tons of chloride titanium dioxide. After the project is completed, its titanium dioxide production capacity will reach 26 Million tons.

Qin Chong, a researcher at China Research and Puhua, told reporters that in 2019, the top 5 companies in the world’s titanium dioxide production capacity accounted for 90% of the industry’s production capacity, while the top ten concentration of my country’s titanium dioxide industry was about 68%, referring to the global situation It can be seen that there will still be acquisitions in the titanium dioxide industry in my country in the future to cater to the development trend of the industry. At the same time, with the help of listed companies, funding channels have been increased, and risk resistance has been increased for the development of enterprises. In addition, due to the implementation of environmental protection policies, the policy-oriented chlorination process will become the mainstream, and the new production capacity will basically be chlorination, which is also a manifestation of the company’s catering to the market. # tio2 market analysis, titanium dioxide market