Break the sky! The price of titanium dioxide inspected by overseas rigid demand superimposed by environmental protection may have an impact on the historical record.

Titanium dioxide, which has repeatedly set new highs in recent years, is still skyrocketing on the road of price increases. After today's trading, Anada, which specializes in titanium dioxide, announced that the domestic sales prices of rutile titanium dioxide and anatase titanium dioxide will be increased by 1000 yuan / ton, and the export price will be increased by US $150 / ton. Subsequently, another manufacturer, Jinpu Titanium Industry, announced that it would raise the price of titanium dioxide products by the same level.

Since July 2020, after titanium dioxide broke through the epidemic and hindered the opening of overseas markets, prices have rebounded from lows and increased by nearly 30% by the end of the year. Before the May Day holiday, the price of titanium dioxide had exceeded 20000 yuan, and in the last week before the festival, the price of rutile (R2) titanium dioxide stood steady at 20600 yuan / ton. As the leader of titanium dioxide, the quotation of Dragon Python is often ahead of the new round of price rise of titanium dioxide.

Under the background of unstable start-up of foreign titanium dioxide manufacturers due to raw material problems, and rising demand at home and abroad, coupled with the cost support given by the high price of titanium concentrate, the titanium dioxide industry has ushered in four rounds of price increases, which is about to break through the all-time high.

At present, the overall demand for titanium dioxide in China does not fluctuate much, overseas is affected by the epidemic situation, the progress of manufacturers to resume work is poor, the spot is less, the demand in foreign market is large, there are many orders to be delivered, and the inventory level of enterprises is very low. On the supply side, due to the wide coverage of environmental protection itinerant inspection, production in various regions is restricted to varying degrees, among which the operating rate in Yunnan, Sichuan, Shandong, Guangxi and other areas has declined greatly, and manufacturers have stopped production and reduced production, resulting in a good supply side.

For this environmental inspection, Western Securities Yang Hui said that the high price of titanium concentrate makes titanium dioxide upstream manufacturers face huge cost pressure, the device is basically running at full load for a long time, with a large degree of loss. Recently, environmental protection inspection, on the one hand, has a policy on the treatment of the production environment and waste discharge, on the other hand, manufacturers also want to carry out device inspection at this opportunity. it is understood that some enterprises that have stopped production or reduced production in the near future have reduced output in a short period of time, but as long as production is resumed, the supply efficiency will be stable and efficient.

Yang Hui said that long-term high costs, weakening terminal acceptability, poor supply of raw materials and other factors are the motivation for enterprises to adjust their pricing plans and production plans after the holiday.

In 2020, affected by the epidemic in the first half of the year, the annual performance of the main core concept stocks of titanium dioxide was relatively flat compared with the same period last year. However, the latest quarterly data show that titanium dioxide concept stocks have achieved more than 15% year-on-year increase in net profit. What's more, Jinpu titanium industry, while reversing losses in the first quarter of 2020, achieved substantial growth compared with the same period last year.

In addition, the gross profit margins of titanium dioxide leaders are also rising steadily. Longbaili, which has a market capitalization of nearly 80 billion, has achieved an increase in sales gross profit margin this quarter. The quarterly gross profit margin of titanium dioxide core concepts such as titanium dioxide, Panzhihua Iron and Steel Co., Ltd., and Huiyun titanium industry also increased by 1% to 7%. The general increase in gross profit margin of individual stocks often represents the current prosperity of the industry.

In terms of the layout of individual stocks, Guotai Junan Duan Haifeng said that in the medium to long term, the new global supply of titanium dioxide depends on China's chlorination process, and China's chlorination method looks at Dragon Python. Continue to recommend titanium dioxide leader Dragon Python Bailey. Yang Hui of Western Securities also said that Longyanbai's own mine has a cost advantage, and there are still a number of capacity projects waiting for construction. It is estimated that after the expansion of production capacity is fully realized, the production capacity of titanium dioxide will reach more than 1.4 million tons / year. It will surpass Komu (1.25 million tons / year production capacity) to become the world's largest titanium dioxide enterprise.