Anning's first-half performance doubled compared with the same period last year, titanium concentrate is expected to continue to be stable and strong in the short and medium term.

Although most people think that the price trend of titanium dioxide will be under pressure in the second half of the year, the trend of titanium dioxide concentrate in the upper reaches is not always the same as that of titanium dioxide. Under the background of the continuous release of downstream titanium dioxide production capacity, the superimposed supply side can not keep up, and the price of titanium concentrate is even expected to continue to strengthen steadily in the short and medium term.

The stronger price of titanium concentrate is better than 002978.SZ. On July 7, Anning, which ranks third in titanium concentrate production in the industry, announced its results and expected to make a profit of 7.2-780 million yuan in the first half of this year, a sharp increase of 103.62 per cent and 120.59 per cent compared with the same period last year. Due to the rising performance, the company said that the market of titanium concentrate and vanadium titanium iron concentrate is improving, the price of titanium concentrate has risen sharply compared with the same period last year, and the price of vanadium titanium iron concentrate has also increased to a certain extent.

According to the reporter's understanding, Anning's main products are titanium concentrate and vanadium titanium iron concentrate, of which titanium concentrate accounts for more than half of the company's total revenue; the company is expected to produce 500000 to 550000 tons of titanium concentrate in 2021, 537600 tons of titanium concentrate in 2020 and 550500 tons of titanium concentrate, an increase of 12.08 percent over the same period last year.

It is understood that the domestic titanium concentrate is mainly concentrated in the Panzhihua-Xi region, and there is no doubt that the first output is Panzhihua Iron and Steel Co., Ltd., according to public information, the output of Panzhihua titanium concentrate is more than one million tons, while the titanium concentrate (000629.SZ) of Panzhihua Iron and Steel Co., Ltd. is bought out and sold by the company to the controlling shareholder Panzhihua Iron and Steel Group according to proportion; after Panzhihua Iron and Steel Co., Ltd., there is a titanium concentrate production capacity of more than 600000 tons. In addition, there are Chongqing Iron and Steel, Xichang Mining and so on.

Public data show that titanium concentrate is currently quoted at about 2500 yuan / ton, which has already doubled compared with the same period last year. The above analysts told reporters that the cost of Anning titanium concentrate in the past five years is about 300 yuan / ton, and its profit space can be estimated at present. According to Anning's 2020 annual report, the gross profit margin of titanium concentrate is 76.48%.

From the historical price trend of titanium dioxide and titanium concentrate, the trend of titanium concentrate is not always the same as that of titanium dioxide, and even the price of titanium concentrate is much higher than that of titanium dioxide from 2017 to 2019. The problem of insufficient supply of titanium concentrate has also been mentioned many times in the annual report of Anning Stock. The data show that China's total output of titanium dioxide in 2020 is 3.52 million tons, and it is estimated that the shortfall of titanium concentrate in China last year was about 2.75 million tons.