[SMM Stock Market] Panzhihua Iron and Steel Co., Ltd. Vanadium and Titanium shares soared 45% in 10 days to boost the industry to usher in a warm autumn.

SMM, Sept. 27: September 13 to 27, a short 10 trading days, Panzhihua Iron and Steel Vanadic Titanium shares rose from 2.86 yuan to 4.14 yuan, during which three trading plates, a rise of more than 7%.

Panzhihua Iron and Steel Co., Ltd. Panzhihua Iron and Steel Co., Ltd.

Panzhihua Iron and Steel Co., Ltd., the full name of Panzhihua Iron and Steel Group Vanadium and Titanium Resources Co., Ltd., is developed from Panzhihua Steel Group Plate Co., Ltd., which is owned by Panzhihua Iron and Steel Group. This enterprise is located in Panzhihua City, Sichuan Province, the capital of vanadium and titanium in China. Mainly due to vanadium pentoxide, vanadium trioxide, medium ferrovanadium, high vanadium iron, vanadium nitrogen alloy and titanium concentrate, titanium dioxide, high titanium slag and other products, is the world's largest manufacturer of vanadium products. It is the largest titanium raw material production base and an important titanium dioxide producer in China. However, the company has been ill-fated in recent years.

Between 2014 and 2016, as a result of Karara Mining's performance and continuous losses, Panzhihua Iron and Steel changed its name to * ST Vanadium Titanium.

The company suffered another huge loss in 2016 and was suspended from listing for one year on May 4.

In September 2016, * ST V-Ti spun off its iron ore and sponge titanium business.

April 20, 2017, * ST vanadium and titanium turn around in the first quarter

On May 4, 2017, it was announced that the listing would be suspended.

After being suspended for 16 months, vanadium and titanium at Panzhihua Iron and Steel Co., Ltd. has changed and jumped out of the quagmire of huge losses that year, becoming a bright star with revenue of 6.77 billion yuan in the first half of 2018, up 60 per cent from the same period last year.

Panzhihua Iron and Steel Co., Ltd. believes that the substantial increase in the company's performance is mainly due to the ban on the import of vanadium slag, the ban on "ground bar", the popularization and application of high-strength steel bars, the progress and application of vanadium battery energy storage technology, and so on. Vanadium prices continue to rise. Demand has been released. With the continuous supercharging of environmental protection supervision, the vast majority of stone coal vanadium extraction enterprises have been shut down, the domestic output is difficult to increase significantly. At the same time, the rise in vanadium prices at this stage has promoted the improvement of the operating environment of the vanadium industry.

Vanadium industry of raising vanadium to set sail

Vanadium, known as "industrial monosodium glutamate", adding a few percent of vanadium to the steel can greatly increase the elasticity and strength of the steel, excellent wear and burst resistance, and resistance to both high temperature and extreme cold. Vanadium can be found everywhere in automobile, aviation, railway, electronic technology, national defense industry and other departments. In addition, vanadium oxide has become one of the best catalysts in the chemical industry, known as "chemical bread", mainly used in the manufacture of high-speed cutting steel and other alloy steel and catalyst. By mixing vanadium into steel, vanadium steel can be made into vanadium steel. Vanadium steel has more compact structure, higher toughness, elasticity and mechanical strength than ordinary steel. The armor-piercing bullet made of vanadium steel can penetrate steel plate 40 cm thick.

Vanadium is the largest consumption in the metallurgical industry, from the world point of view, its consumption in the iron and steel industry accounts for 85% of its total production. At the same time, the application of vanadium in chemical industry, vanadium battery, aerospace and other fields is also expanding, and has a good development prospect.

Vanadium is mainly used as alloy additive in iron and steel industry. The development and change of iron and steel industry is very important to predict the demand of vanadium. In other words, the demand trend of iron and steel for vanadium determines the fate of vanadium industry. According to relevant data, China's steel production is about 600m tons, with an average consumption intensity of 10g per ton of vanadium, equivalent to about 11000 tons of vanadium pentoxide.

Forecast of supply and demand structure of Vanadium products (in V2O5) from 2018 to 2020:

Due to the stricter environmental restrictions on production and the restriction on supply-side release caused by the ban on the import of vanadium slag, these two factors reduced the supply of domestic vanadium products (in V2O5 terms) by 12 to 15 million tons in 2017, according to the statistics of Sino-Thai Securities. At the same time, The demand side of the iron and steel industry is basically oriented to support the demand for vanadium products, with the tightening of thread quality inspection standards will bring at least 9300 tons of additional demand in 2018. Zhongtai Securities predicted that the overall supply and demand relationship is expected to maintain a strong trend in the future, tight supply and demand driven vanadium prices to hit new highs, the late vanadium prices are expected to maintain high or even further rise.

Vanadium price and gross profit trend per ton of rebar: