Foreign titanium dioxide giants frequently issued price increase notices, which improved the prosperity of the industry again, and the titanium dioxide sector in the secondary market also continued to strengthen recently.
On March 1, the A-share titanium dioxide sector closed at 145236 points, up 0.54%, with a total turnover of 2.74 billion yuan and a turnover rate of 1.51%. The titanium dioxide sector rebounded, with an increase of 16.85%, after reaching the low point of 124289 for nearly half a year on January 28.
four overseas giants raise prices
A major incentive to promote the upward movement of titanium dioxide sector lies in the intensive price rise of giants. On February 28, Komo announced that from April 1, 2022, all specifications of Ti puretm titanium dioxide purchased in Greater China will be increased by US $200 / ton according to the contract or law.
From February 23 to 24, fannengtuo and tenor successively issued price increase notices. Fannengtuo said that from April 1, 2022, the company will adjust the price of all titanium dioxide products suitable for coatings, inks, paper and other applications sold in EMEA, with a maximum increase of $400 / ton.
Tenor adjusted the price of all TiO2 and tikontm titanium dioxide products sold in Europe to 150 euros / ton and 175 dollars / ton or 155 euros / ton in the Middle East, Africa and Eastern Europe. Tenor said that it will operate its assets efficiently to meet the strong demand of the market, and the company has also made a lot of investment to ensure the long-term sustainability of its business.
On February 15, KONOS also announced a price increase. Since April 1, its titanium dioxide products have increased by up to $200 / ton.
Chinese enterprises piled up to raise prices last December. Lb Group Co.Ltd(002601) launched the first shot of price increase in 2022, the largest titanium dioxide enterprise in Asia. According to its announcement on December 13, 2021, from January 1, 2022, the sales price of various models of titanium dioxide of the company will be increased by 1000 yuan / ton for Chinese customers and 150 dollars / ton for international customers on the basis of the original price Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) , Guangdong Huiyun Titanium Industry Co.Ltd(300891) followed, and announced the price increase on December 14.
The price of titanium dioxide increased significantly in February this year. According to Zhuo Chuang information monitoring data, as of the end of last week, the average price of Chinese titanium dioxide in February had reached 19767 yuan / ton, a year-on-year increase of more than 10%.
In an interview with the reporter of the international finance news, a number of relevant people of Chinese titanium dioxide enterprises said that they had not received the notice of price increase for the time being, but they did not rule out the price increase affected by cost pressure.
Anhui Annada Titanium Industry Co.Ltd(002136) the person from the board secretary office told the reporter of the international finance news, “whether the price rises or not depends on the market. The titanium dioxide industry adjusted the price 10 times last year, and the price of sulfuric acid is still rising recently. If the subsequent prices of main raw materials are still pushed upward and the cost pressure of the company is too great, the price rise may be considered.”
cost and demand push up prices
Why does titanium dioxide rise in price? On the one hand, it is to transmit cost pressure; On the other hand, it is driven by downstream demand Lb Group Co.Ltd(002601) the person from the board secretary office told the reporter of the international finance news, “with the improvement of the overseas epidemic situation, the market demand has increased, and the titanium dioxide price has not fallen after a wave of rise, which has a support for the titanium dioxide price.”
At present, the company is experiencing an unprecedented increase in raw material and freight costs, especially the energy costs of European manufacturing plants, according to fannengtuo. In view of the volatility and unpredictability of these costs, the company will adjust the pricing on a monthly basis as needed. Tenor previously pointed out in the fourth quarter financial report that the cost pressure of energy, processed chemicals and other raw materials and freight will continue until the second quarter of 2022, so it is necessary for the company to take action to pass on the rising costs.
Connors said that the price increase is to respond to the continuous strong market demand and help the company reduce the rising costs in all business areas.
Lb Group Co.Ltd(002601) the person in the office of the board secretary told the reporter of the international finance news, “The price of titanium dioxide has been at a relatively high historical level and has been running at a high level for some time. Although there is no downward trend in the price of raw materials, including titanium ore, it is possible that Chinese manufacturers still have a high degree of acceptance of the price. Our company implemented the new price on January 1 this year, which does not rule out the follow-up action of Chinese manufacturers.” After the price rise, downstream orders are basically the same as before, without much impact. “
Titanium dioxide analysts of business society believe that the spot market of titanium ore continues to be tight, the price rises, the price of sulfuric acid also continues to rise, and the cost support performance is strong. At the same time, export orders performed well. International titanium dioxide enterprises sent a letter to increase the price of titanium dioxide, which was superimposed by positive factors. It is expected that the titanium dioxide market will run steadily and well in the short term, and the actual transaction price will be mainly discussed.
made a good profit last year
Titanium dioxide prices are high, and titanium dioxide enterprises make a lot of profits. On the evening of February 25, Anhui Annada Titanium Industry Co.Ltd(002136) disclosed the performance express. In 2021, the company achieved a revenue of 2.047 billion yuan, a year-on-year increase of 82.49%, and a net profit attributable to the parent company of 185 million yuan, a year-on-year increase of 184.57% Anhui Annada Titanium Industry Co.Ltd(002136) said that during the reporting period, the titanium dioxide market, the company’s main product, was in a business cycle. The company seized the market opportunity, actively responded to the adverse effects such as the rise in the price of raw and auxiliary materials, increased the device load, widened marketing channels and optimized the marketing structure. The production and sales of titanium dioxide increased by 20.42% and 17.99% respectively compared with the previous year.
According to Anhui Annada Titanium Industry Co.Ltd(002136) official wechat, as of February 28, the company produced 9669 tons of rutile titanium dioxide in February, an increase of 9.5% over the same period last year, another new monthly production record after 9242 tons in May last year. The first-class product rate of the product is 98.2%, of which the qualified rate of high mixing dispersion is 84.5%, creating the best level in history.
Lb Group Co.Ltd(002601) performance forecast shows that the net profit attributable to the parent company in 2021 is expected to be 4.577 billion yuan to 5.722 billion yuan, with a year-on-year increase of 100% to 150%. He said that during the reporting period, the market of titanium dioxide, the company’s main product, was in a boom cycle, and the sales price increased significantly year-on-year. The utilization rate of the existing titanium dioxide capacity was improved, especially the effective release of the company’s chlorination capacity. Although the sharp rise in the price of raw and auxiliary materials and transportation costs had a certain adverse impact on the operating performance, However, the competitive advantage of the whole industrial chain of the company’s vertical integration has fully emerged, which has promoted the company’s net profit to increase significantly year-on-year.
As the largest customer of titanium dioxide, coating enterprises account for about 60% of the consumption, and the price rise puts pressure on their performance.
Paint leaders Skshu Paint Co.Ltd(603737) , Asia Cuanon Technology (Shanghai) Co.Ltd(603378) 2021 may fall into the situation of turning profit into loss. According to the performance forecast, Skshu Paint Co.Ltd(603737) expects a loss of 320 million yuan to 470 million yuan in 2021, and Asia Cuanon Technology (Shanghai) Co.Ltd(603378) expects a loss of 438 million yuan to 580 million yuan Skshu Paint Co.Ltd(603737) said that the operating revenue of the company in 2021 is expected to increase by about 40% compared with the same period of the previous year. However, due to the sharp rise in the price of raw materials, the production cost of the company has increased accordingly, the price rise of the company’s products lags behind, and the profitability has been affected.
