The domestic sales price is increased by 1,000 yuan per ton, a price increase of approximately 6%.
After a month, domestic titanium dioxide companies once again announced an increase in the selling prices of their products.
On February 28, Longbai Group (002601.SZ), CNNC Titanium Dioxide (002145.SZ), and Huiyun Titanium Industry (300891.SZ) collectively announced that starting from March 1, the prices of various types of titanium dioxide will be increased across the board. . Among them, the sales price for domestic customers is increased by 1,000 yuan/ton, and the sales price for foreign trade is increased by US$150/ton, with a price increase of approximately 6%.
The above-mentioned companies all stated that the price adjustment of the company’s products is mainly based on the international and domestic titanium dioxide market and recent raw material costs. This price adjustment will have a positive impact on the improvement of the company’s overall performance.
According to data from Shanghai Nonferrous Metals Network, as of March 1, the average domestic price of rutile titanium dioxide was 15,500 yuan/ton. Rutile titanium dioxide is one of the main types of titanium dioxide.
From the end of January to the beginning of February this year, titanium dioxide companies such as Longbai Group and CNNC Titanium Dioxide started price increases for the first time in the year, with the same price increase as this time.
The successive price increases have also boosted the performance of titanium dioxide in the stock market. As of the close of trading on March 1, the titanium dioxide sector overall rose by 1.52%. Among them, Huiyun Titanium’s share price rose 5%, and China National Nuclear Titanium Dioxide’s share price rose 2.18%.
Titanium dioxide is an important inorganic chemical pigment, mainly used in coatings, automotive paint and other fields. At present, nearly 60% of the titanium dioxide market is mainly concentrated in the coating field. The downstream coatings include construction, protection, industry and other sub-sectors.
According to Shanghai Nonferrous Metals Network, as the real estate market is expected to gradually bottom out this year, the linkage will affect the growth of titanium dioxide in the coatings market. For the first time this year, the price increase of titanium dioxide was successfully implemented. After entering February, the transaction volume of the titanium dioxide market improved significantly compared with the previous month, the number of downstream inquiries increased by more than 30% month-on-month, and some supply-side companies were in a situation of arranging production orders.
Kaiyuan Securities Research reported that although the current prosperity of the domestic titanium dioxide industry is at a low ebb, in the future, with the steady advancement of real estate support policies and the gradual recovery of the macro economy, the downstream demand for titanium dioxide may usher in improvement.
Longbai Group also said in a recent survey by institutional investors that this year, downstream companies are expected to improve, demand for stockpiling has increased, and new orders have been sufficient. In addition, various favorable economic policies have been continuously introduced and implemented, and downstream market demand has accelerated to recover. After the price increase of the company’s products, the profits of the titanium dioxide sector improved, but small and medium-sized manufacturers are expected to still be in the red.
Last year, due to the high cost and weak demand caused by the mismatch between supply and demand, the titanium dioxide industry’s prosperity declined, and the average market price was maintained near the cost line. Most titanium dioxide manufacturers suffered losses or declined in performance.
Gimpo Titanium’s net loss last year was 140 million-166 million yuan, a year-on-year decrease of 255%-230%. Huiyun Titanium’s profit last year was 10 million-15 million yuan, a year-on-year decrease of 92.38%-94.92%.
According to data from Shanghai Nonferrous Metals Network, at the beginning of last year, the average price of domestic rutile titanium dioxide was 20,700 yuan/ton, and at the end of the year, the average price was 15,900 yuan/ton, a decrease of 23% during the year.