On March 9, the leader of titanium dioxide industry Lb Group Co.Ltd(002601) ( Lb Group Co.Ltd(002601) . SH) issued a price increase letter. The price increase letter showed that since March 9, the company’s various types of titanium dioxide have increased by 1000 yuan / ton for Chinese customers and 150 dollars / ton for international customers. On the evening of the 9th, Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) ( Cnnc Hua Yuan Titanium Dioxide Co.Ltd(002145) . SZ) also announced to follow the rise, which was consistent with Lb Group Co.Ltd(002601) .
According to the price monitoring data of business agency, on March 9, the external quotation of Lb Group Co.Ltd(002601) titanium dioxide was 22000 yuan / ton, slightly higher than the average market price.
Tian Xiaoyu, an analyst of Zhuo Chuang information industry, told the financial associated press that unlike in the past, Lb Group Co.Ltd(002601) is the first to announce the price increase before other enterprises have announced the price increase, and implement it immediately, which is equivalent to raising the price one month ahead of the overseas machine giant that announced the price increase in the second quarter. In a sense, Lb Group Co.Ltd(002601) ‘s price increase letter can stabilize the current price of titanium dioxide.
After Lb Group Co.Ltd(002601) issued the price increase letter, the reporter of the financial Associated Press contacted a number of titanium dioxide enterprises for the first time. Relevant enterprises told the financial associated press that in the past, after Lb Group Co.Ltd(002601) issued the price increase letter, downstream enterprises would add some product orders to titanium dioxide enterprises at the first time to ensure the relative low price of raw materials. On the 9th, after Lb Group Co.Ltd(002601) issued the price increase letter, titanium dioxide enterprises almost did not receive additional orders as in the past. This has a certain impact on titanium dioxide enterprises. Most enterprises should decide whether to follow up in combination with downstream demand and their own inventory.
At present, the average price of titanium dioxide in China is 1950020000 yuan. In this price, the product sales of titanium dioxide enterprises in East China are still relatively optimistic Anhui Annada Titanium Industry Co.Ltd(002136) relevant people told the financial associated press that at present, the shipment situation of the enterprise is good. At present, the enterprise is full of production and sales, and there is no inventory. However, at present, enterprises are also worried that the price increase of titanium dioxide will inhibit the downstream demand. Moreover, the person told the financial associated press that although Lb Group Co.Ltd(002601) announced the price increase, it still needs a single discussion on the specific sales. The implementation of the price increase also depends on the sales situation. The increase of 1000 yuan / ton may not be implemented in the short term.
The financial Associated Press reporter noted that the downstream coating industry of titanium dioxide has issued a loss warning. On March 7, China Coating Industry Association issued the “profit warning of China’s coating industry in 2022”. The article mentioned that since the third quarter of last year, the profit of China’s coating industry has dropped sharply, entered negative growth in the fourth quarter, and the overall profit of the whole year has negative growth. Since 2022, due to the rapid rise in the price of upstream raw materials, China paint association has issued this profit warning. Relevant enterprises are requested to adjust their business strategies according to their own conditions.
In this regard, Tian Xiaoyu told the financial associated press that in March of previous years, it was the time to replenish the inventory of raw materials downstream of titanium dioxide, and there should be a significant increase in domestic demand, but so far this year, downstream enterprises still have no replenishment action; China’s downstream demand continues to be weak, which will inhibit the price rise of titanium dioxide.
It is also worth mentioning that titanium dioxide raw materials have continued to rise since the beginning of the year 2022, putting titanium dioxide enterprises under great cost pressure.
According to the monitoring data of titanium concentrate and sulfuric acid price of business society, since February 2022, the tax free quotation of 46% titanium ore of titanium concentrate has been about 24 Guangzhou Echom Sci.&Tech.Co.Ltd(002420) yuan / ton, and the delivery price (including freight) in East China has risen to 3100 yuan / ton. After the Spring Festival, the price of sulfuric acid has been raised for three consecutive times, the highest price in Shandong is 1020 yuan / ton, and the average price in East China is 670 yuan / ton, At least 210 yuan / ton higher than before the Spring Festival. For titanium dioxide enterprises, the cost of producing a ton of titanium dioxide will increase by more than 2000 yuan. In the future, enterprises can only absorb the rising production cost by raising the price, which will play a supporting role in the price rise of titanium dioxide.
