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Titanium dioxide may depend on export

Nov.05 2019      Source:Net


Affected by the sluggish downstream demand, the market price of titanium dioxide is far lower than that of the same period of previous years, and there is a weak market in the peak season. Except for a few leading enterprises, the performance of most enterprises in the industry is unsatisfactory. Although the domestic market is sluggish, the export of the industry is on the rise. For the future market, some insiders predict that with the support of export, titanium dioxide Market in the fourth quarter is expected to be generally good.

Since this year, the titanium dioxide industry's two giants, Lonmon Billions and CNNC titanium dioxide, have raised their prices for four times, keeping their first three quarters' performance growing. In the first three quarters, Lonmon Billions achieved an operating revenue of 8.271 billion yuan, a year-on-year increase of 3.08%; the net profit attributable to shareholders of the listed company was 2.066 billion yuan, a year-on-year increase of 4.84%. In the first three quarters, CNNC achieved an operating revenue of 2.559 billion yuan, an increase of 9.65% year-on-year, and a net profit of 329 million yuan, an increase of 4.78% year-on-year.

Compared with the two giants, most of the performance of other listed companies in the industry has declined. Among them, Jinpu titanium achieved an operating revenue of 1.454 billion yuan in the first three quarters, an increase of 0.94% year-on-year; the net profit attributable to shareholders of listed companies was 52.4735 million yuan, a decrease of 35.28% year-on-year. Ananda's net profit in the first three quarters was 39.46 million yuan, a year-on-year decrease of 40.87%. The net profit of Panzhihua Iron and Steel Co., Ltd. in the first three quarters decreased by 30%. For the reasons of performance changes, many companies explained that the sales price of products decreased year-on-year, and the gross profit rate decreased.

Some market participants said that although the price of titanium dioxide has increased several times this year, benefiting the leading enterprises with core competitiveness such as technology and cost, the overall market prosperity still needs to be further improved. The source further revealed that after the national day, leading enterprises have strong willingness to hold up prices, and other manufacturers also have the willingness to raise prices, but the dealers' orders are not ideal. "Especially in autumn and winter, the environmental protection supervision is more strict. Many downstream large consumer coating enterprises stop production and limit production. The market demand is reduced in peak season, and the market situation is not prosperous in peak season or even plummeting, so the price increase press the pause key."

Take the rutile titanium dioxide produced by sulfuric acid process, which has a large volume of goods in the domestic market, as an example. According to the data list of business associations, the average price of titanium dioxide in early May this year was 16666.67 yuan / ton, and that in October 26 was 15833.33 yuan / ton, down 833.34 yuan / ton from the beginning of May, a decrease of 5%. Meanwhile, compared with the prices of 16500 yuan / ton in the same period of 2018 and 17000 yuan / ton in 2017, the overall average price of titanium dioxide this year is also at a low level. The industry expects that with the titanium dioxide market gradually entering the off-season, the price trend may not continue.

Although the domestic market shows weakness, the export is on the rise. According to export data, in August this year, China exported 87300 tons of titanium dioxide, an increase of 15.39% year on year. From January to August 2019, the cumulative export was 657600 tons, an increase of 2.95% over the same period last year. In 2019, India was the largest exporter of titanium dioxide, followed by South Korea, Brazil, Vietnam and Indonesia.

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