Titanium dioxide companies have increased prices
Recently, many titanium dioxide companies announced price increases ranging from 300 yuan to 500 yuan/ton. According to HC Chemical Network, on September 20, Guangxi Jinmao Titanium Industry issued a price adjustment letter. Since the price of raw and auxiliary materials continues to rise, since September 25, the price of its titanium dioxide has been raised by 500 yuan/ton. On the same day, Panzhihua Tihai Technology issued a price adjustment letter. Due to the substantial increase in production costs, the price of titanium dioxide was increased immediately, domestic trade was increased by 500 yuan/ton, and foreign trade was increased by US$80/ton. Hunan Dayutu Chemical Co., Ltd. also announced that starting from September 20, the company’s titanium dioxide sales price will increase by 300 yuan/ton.
In early September, the titanium dioxide company announced a round of price increases. On September 7, Lomon Baili announced a price adjustment letter. Affected by factors such as tight natural gas supply and environmental protection restrictions, since October 1, various types of titanium dioxide including sulfuric acid titanium dioxide and chloride titanium dioxide On the basis of the original price, the sales price will be increased by RMB 300/ton for various domestic customers and USD 50/ton for international customers. The announcement shows that this product price adjustment will have a positive impact on the company’s overall performance improvement. At the same time, the impact of this price increase on sales volume is still uncertain, and the duration of the new sales price cannot be determined, and there is a risk that product prices will continue to fluctuate.
Baichuan Information Titanium Dioxide Industry Analyst Yan Yu told a reporter from China Securities News that the company’s price increase is mainly due to the recent increase in the price of raw materials. The superposition is currently the traditional price increase cycle for titanium dioxide, which can boost the market. The role of. Other companies belong to follow-up behavior. The specific effect depends on the market response and continued situation. The demand for titanium dioxide is mainly concentrated in real estate and automobiles. As the overall growth rate of these industries slows, the prosperity of the demand side of titanium dioxide is also affected to a certain extent.
Increased concentration of performance differentiation industry
Yan Yu emphasized that due to the relatively high increase in the price of titanium dioxide in 2017, the overall price fluctuation in 2018 was not large, and high prices have been the main focus during the year to maintain stability. At present, the domestic production capacity of titanium dioxide is about 3.56 million tons, and the industry operating rate is about 80%. The increase in the price of raw materials has severely compressed the profit margins of small and medium-sized enterprises; large-scale enterprises have a stable customer base and the entire industry chain, with relatively small impact, which has further increased the concentration of the industry.
Judging from the situation of listed companies that have issued third-quarter performance forecasts, the performance differentiation is more obvious. Affected by rising raw materials, rising prices of natural gas and other energy sources, and rising environmental operating costs, some companies have experienced a significant year-on-year decline in performance. Taking Anada as an example, the company expects to achieve a net profit of 60-80 million yuan from January to September, a year-on-year decrease of 35.85%-51.88%. The company expects that the market demand for titanium dioxide will be stable, the market demand for iron phosphate will be insufficient, the prices of some raw and auxiliary materials will rise, the cost of environmental protection and governance will rise sharply, and the product gross profit margin will decline.
Some companies have relatively stable performance. Lomon Baili expects to achieve a net profit of 1.729 billion yuan to 2.305 billion yuan from January to September, with a year-on-year growth ceiling of 20%. Mainly because the cost and sales price of the leading product titanium dioxide were basically stable, the production and sales volume increased slightly compared with the same period last year.
It is worth noting that Lomon Baili has a clear intention to continue to expand production capacity. In the first half of 2018, after the company terminated the non-public offering of shares to acquire Anning Iron Titanium, it immediately announced that it plans to issue convertible bonds to raise funds not exceeding 1.854 billion yuan, which will be used for the 200,000/ton chlorination titanium dioxide production line project and supplementary working capital . According to the research report of Centaline Securities, at present, the company’s production capacity of 60,000 tons of chlorination titanium dioxide has gradually stabilized, and the second phase of the 200,000 tons of chlorination project has started construction and is expected to be put into operation in 2019.
Yan Yu said that at present, the anatase titanium dioxide is around 14,000 yuan/ton; the mainstream ex-factory price of rutile titanium dioxide is around 17,000 yuan/ton; the chloride method titanium dioxide exceeds 20,000 yuan/ton. Compared with other types of titanium dioxide, the price of chlorinated titanium dioxide is higher, and the gross profit margin is also higher. Through the expansion of the chlorination titanium dioxide production line and the gradual replacement of production capacity, the concentration of the industry will further increase.
