The net profit of Vanadium and Titanium of Panzhihua Iron and Steel Co., Ltd. is increased by 236% in 2021. The price of vanadium products in 2022 will be under pressure.

According to the performance forecast on the evening of January 6th, Vanadium and Titanium of Panzhihua Iron and Steel Co., Ltd. is expected to achieve a net profit of 1.28 billion yuan to 1.38 billion yuan in 2021, an increase of 236.03 percent to 262.29 percent over the previous year (after adjustment); deducting non-net profit of 1.28 billion yuan to 1.38 billion yuan, an increase of 246.40 percent and 273.47 percent over the same period last year.

After previous asset restructuring, Pangang's main business includes vanadium, titanium and electricity, among which vanadium and titanium plate is the strategic focus of the company's business development. the main products include vanadium oxide, vanadium ferroalloy, vanadium nitrogen alloy, titanium dioxide, titanium slag and so on.

The company said that the main reasons for the performance growth are: first, the acquisition of 100% equity in Xichang vanadium products was completed in 2021 and included in the consolidated statement; second, the company made every effort to link up production and marketing, and the price and sales volume of vanadium and titanium products increased significantly compared with the same period last year; third, the company strictly implemented cost reduction and efficiency measures, actively digested the impact of rising purchasing prices of upstream raw and auxiliary materials, and tapped internal potential to enhance profitability. By the end of the reporting period, deferred income tax assets should be written down by about 110 million yuan.

Wang Mengyun said that the vanadium pentoxide market in 2021 relied on a surge in steel production, and prices continued to rise in the first half of the year, rising from about 95000 yuan / ton at the beginning of the year to a high of 135000 yuan / ton in July, with a price increase of 42.1 percent in half a year. Although prices fluctuated in the second half of the year, they remained at 12.4-125000 yuan per ton at the end of the year, an increase of 31.5% compared with the beginning of the year. The annual increases of ferrovanadium and vanadium-nitrogen alloys in 2021 also reached 19.7% and 24.6%, respectively.

It is worth mentioning that at the end of last year and the beginning of this year, titanium dioxide enterprises set off another round of price increases. After Longbai Group, China Nuclear Titanium dioxide and other enterprises announced the price increase of titanium dioxide at the end of December last year, Jinpu Titanium Industry (000545.SZ) also issued a price increase letter on January 5, 2022, saying that its products will increase by 1000 yuan per ton for various domestic customers and 150 US dollars per ton for international customers.

Of course, not only the vanadium and titanium performance of Panzhihua Iron and Steel Co., Ltd. has increased significantly, but the titanium dioxide enterprises that have disclosed the performance forecast have given a bright performance forecast one after another. Among them, Anada expects to achieve a net profit of 169 million yuan to 202 million yuan in 2021, an increase of 160% to 210% over the same period last year. The net profit of China Nuclear Titanium White is 1.188 billion yuan to 1.426 billion yuan, an increase of 150% over the same period last year. Longbai Group's net profit is 4.577 billion yuan to 5.722 billion yuan, up 100% and 150% over the same period last year.