The 2024 annual report recently released by Luban Chemical shows that in 2024, the company achieved operating revenue of 5.7464 billion yuan, up 752.2454 million yuan YoY, an increase of 15.06%. The main increases were sales revenue of titanium dioxide products, which rose by 14.64%, and sales revenue of methane chloride products, which increased by 32.72%. The total profit reached 423.4714 million yuan, up 129.60% YoY. The net profit attributable to shareholders of the publicly listed firm was 260.9771 million yuan, up 157.28% YoY.
The annual report of Luban Chemical shows that in 2024, the company's main businesses were titanium dioxide, methane chloride, fertilizers, raw salt, bromine, and cement. Among them, titanium dioxide accounted for 68.68% of the main business revenue, up 14.64% YoY. Methane chloride products accounted for 18.37% of the main business revenue, up 32.72% YoY. Fertilizers accounted for 5.1% of the main business revenue, up 6.24% YoY. Raw salt accounted for 2.65% of the main business revenue, up 8% YoY. Bromine accounted for 0.78% of the main business revenue, down 15.44% YoY. Cement accounted for 1.03% of the main business revenue, down 24% YoY. Other products accounted for 2.39% of the main business revenue, up 21.81% YoY.
Regarding the titanium dioxide industry, Luban Chemical stated in its annual report that the supply-demand pattern of titanium dioxide is difficult to change in the short term, and companies may face more intense competition. At the same time, the ruling of India's anti-dumping investigation on Chinese titanium dioxide in February 2025 will also have a certain impact on the export of domestic titanium dioxide. However, with the implementation of relaxed real estate policies and the steady increase in urbanization rate stabilizing the basic housing market, the end-use demand in the construction industry is expected to maintain a good recovery and growth momentum, and the overall demand side may show a slow improvement trend. Regarding the development trend of the titanium dioxide industry, Luban Chemical stated: (1) The domestic titanium dioxide market space will further expand, (2) The concentration of the titanium dioxide industry will further increase, (3) The technology will tend towards the chloride method, (4) Environmental protection requirements will continue to rise. (5) The overseas titanium dioxide market has broad space. The reduction in global titanium dioxide capacity has led to a decrease in international titanium dioxide supply, coupled with the price advantage of domestic sulfuric acid method titanium dioxide in the international market, which is more favorable for China's titanium dioxide export market and also helps to improve the oversupply situation in the domestic titanium dioxide market.
Regarding the company's development strategy, Luban Chemical introduced: The company will take the opportunity of replacing old growth drivers with new ones, adhere to the diversified development strategy, utilize the company's own industrial foundation and resource advantages, focus on the development of the titanium industry, steadily promote capacity expansion and upstream and downstream integration, and promote high-end, differentiated, and serialized development, striving to build a large-scale titanium industry demonstration base with extensive influence in China. And around the titanium dioxide industry, methane chloride, basic chemical industry, circular economy, and resource utilization, fully build a refined and high-end chemical industry base, as well as a modern marine industry base.
Regarding the business plan, Luban Chemical stated that the company's management will continue to accelerate the construction progress of the chloride method titanium dioxide project, sulfur-based sulfuric acid and waste heat power generation project, and zirconium-titanium ore beneficiation project, further improving the company's performance.
Reviewing the historical price trend of SMM rutile titanium dioxide, it can be seen that in 2024, with the successive commissioning of new capacities in the titanium dioxide industry, although the downstream demand for titanium dioxide has been relatively robust, the increase in new capacity was greater than the increase in demand, resulting in an oversupply situation in the titanium dioxide market, and the price center of titanium dioxide also showed a downward trend. Reviewing the historical price of rutile titanium dioxide, it can be seen that the average price of rutile titanium dioxide on December 29, 2023 was 15,850 yuan/mt, and the average price on December 31, 2024 was 14,500 yuan/mt, with an average price drop of 8.52% in 2024. The weak downward trend of titanium dioxide prices has also put pressure on the production of many titanium dioxide companies.
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According to the latest SMM quotation, on March 26, the SMM rutile titanium dioxide quotation was 14,200-15,000 yuan/mt, with an average price of 14,600 yuan/mt, which has been flat since February 17. This average price is up 100 yuan/mt compared to the average price of 14,500 yuan/mt on December 31, 2024.
Since entering 2025, the titanium dioxide market has experienced maintenance and production control and pre-holiday stockpiling. Due to the tight supply in the spot market, the supply-demand relationship of titanium dioxide has changed. Previously, many titanium dioxide companies successively issued two waves of price increase letters in late January and late February. Currently, the price of titanium concentrate is high, and the price of sulfuric acid continues to rise, leading to the continuous increase in the raw material cost of titanium dioxide. Coupled with the low inventory of some titanium dioxide companies and tight spot supply, the export demand has been relatively considerable, and the confidence of titanium dioxide producers in the third round of price increases within the year is relatively firm. However, the downstream demand has not shown a significant increase. According to past practices, after titanium dioxide companies successively announce price increases, it still takes some time for the market to react and accept the spot prices. SMM will continue to track the implementation of titanium dioxide price increase letters.
