On the evening of April 14, the leading enterprise of zirconium industry Guangdong Orient Zirconic Ind Sci And Tech Co.Ltd(002167) ( Guangdong Orient Zirconic Ind Sci And Tech Co.Ltd(002167) . SZ) disclosed the first quarter financial report, and Q1 Guangdong Orient Zirconic Ind Sci And Tech Co.Ltd(002167) products achieved both volume and price increases. A person from the zirconium industry told the financial associated press that Q2 zirconium materials are expected to remain at a high level, and zirconium products are still in short supply. It is worth noting that some downstream small and medium-sized suppliers told the associated press that it is still difficult to get goods, and the industry may continue to focus on the head.
According to Guangdong Orient Zirconic Ind Sci And Tech Co.Ltd(002167) q1 financial report, the company achieved a revenue of 369 million yuan during the reporting period, with a year-on-year increase of 43.99%; The net profit attributable to the parent company was 60.07 million yuan, a year-on-year increase of 377591%; Deduct non net profit of 56.63 million yuan, with a year-on-year increase of 393257%. For the amazing performance, the company said: the sales unit price and quantity of main products increased, the sales revenue increased, and the gross profit margin increased. At the same time, after purchasing Jiaozuo Weina Technology Co., Ltd., the competitive advantage of the company’s Zirconium industrial chain has been fully reflected, resulting in the increase of economic benefits
Apart from Guangdong Orient Zirconic Ind Sci And Tech Co.Ltd(002167) , other zirconium manufacturers also made a lot of profits. “At present, the market of zirconium products has always been at a high level, and the raw material of zircon sand has increased from about 14000 yuan / ton in the middle of last year to about 20000 yuan / ton at present. The company has been in the state of full production and sales, and the income of Q1 has doubled.”
Since last year, the zirconium industry has entered a large cycle, and the price of zirconium materials has continued to rise. Taking Guangdong Orient Zirconic Ind Sci And Tech Co.Ltd(002167) as an example, despite the continuous downturn of the manufacturing environment, the two price increase letters disclosed by Guangdong Orient Zirconic Ind Sci And Tech Co.Ltd(002167) this year have increased the price of zirconia products by 4500 yuan / ton since the beginning of the year. It is worth mentioning that the price of zirconia products of Guangdong Orient Zirconic Ind Sci And Tech Co.Ltd(002167) in 2021 has experienced more than 10 price increases.
“From the current orders received, the market of Q2 is similar to that of Q1 and should continue to remain high,” the person in charge of the zirconium plant told reporters. With the continuous development of 3D printing, semiconductor, Cecep Solar Energy Co.Ltd(000591) battery and other industries, the demand for zirconium materials from downstream manufacturers continues to rise.
Zirconium industry has been plagued by the scarcity of raw materials, and in the Chinese market, “those who get the ore get the world”. It is gratifying that good news has come recently. Recently, Rio Tinto, the world’s leading mining company, announced that the force majeure of the customer contract of Richards Bay mining company (RBM) in South Africa has ended. Minerals Sinead Kaufman, Rio Tinto’s chief executive, said, “since the cessation of operations last year, this marks an important moment for RBM’s recovery.” Previously, due to the security situation, RBM has stopped operation since June last year, which has greatly exacerbated the resource tension of the zirconium industry.
It is worth noting that the head manufacturers earn “pots full”, while the downstream small enterprises are difficult to survive. A zircon sand middleman told the associated press that “we were a little embarrassed in the first quarter of this year. We could not get the goods from the upstream, and there were no enterprises in the downstream looking for us to sell goods affected by the epidemic”. In this regard, the person in charge of the zirconium plant told reporters that at present, the industry resources are inclined to the head enterprises, and the industry is expected to continue to focus on the head in the future.
