Resource efficient comprehensive utilization of titanium dioxide enterprises scramble to layout lithium battery industry chain

With the peak consumption season approaching, more than 20 titanium dioxide production enterprises, such as Longbai Group, China Nuclear Titanium dioxide and Jinpu Titanium Industry, have recently sent a letter to announce a price increase. Since the beginning of this year, the price of titanium dioxide has continued to rise, and the rise in volume and price has become the main reason to boost the performance of listed companies. At the same time, titanium dioxide enterprises take advantage of their own advantages to compete for the layout of iron phosphate, lithium batteries and other new energy industry chain to increase profit growth points.

The performance is gratifying.

Benefiting from the growth in demand, the price of titanium dioxide continues to rise, and a number of titanium dioxide listed companies have reported gratifying results on a half-yearly basis.

On the evening of August 23, Vanadium and Titanium of Panzhihua Iron and Steel Co. In the first half of 2021, the company achieved operating income of 7.133 billion yuan, an increase of 42.62% over the same period last year; net profit of 507 million yuan, an increase of 492.86% over the same period last year; and basic earnings per share of 0.06 yuan. During the reporting period, the sales volume and prices of vanadium and titanium products increased compared with the same period last year.

In the first half of the year, Anada achieved a net profit of 86.0615 million yuan belonging to the owner of the parent company, an increase of 132.99% over the same period last year; operating income of 910 million yuan, an increase of 88.11%; and basic earnings per share of 0.4002 yuan, an increase of 132.95% over the same period last year. The company said that during the reporting period, the market demand for titanium dioxide continued to improve, and product prices rose significantly compared with the same period last year; at the same time, the iron phosphate market continued to boom and the products were in short supply.

Jinpu Titanium Industry disclosed its semi-annual report on the evening of August 10. In the first half of 2021, the company achieved operating income of 1.238 billion yuan, an increase of 55.56% over the same period last year; net profit belonging to shareholders of listed companies was 112 million yuan, an increase of 1404.26% over the same period last year; and basic earnings per share was 0.1139 yuan. The change in performance is mainly due to the increase in the price and sales volume of titanium dioxide, the main product.

Since August, more than 20 titanium dioxide enterprises, such as Longbai Group, Jinpu Titanium Industry and Anada, have concentrated on raising product prices, with a single increase of up to 1500 yuan / ton.

China Nuclear Titanium dioxide announcement said that from August 11, on the basis of the existing sales prices of titanium dioxide, the company's sales prices of various models of titanium dioxide will be raised in an all-round way. Among them, the sales price of domestic customers increased by 1000 yuan / ton, and the export price increased by 200 US dollars / ton. It is worth mentioning that the price of medium nuclear titanium dioxide has been raised six times this year. Among them, domestic sales prices have increased by 5500 yuan / ton, and foreign sales prices have increased by 930 US dollars / ton.

The rise in the price of raw materials has become the main reason to promote the price increase of titanium dioxide products in this round.

Extend the industrial chain

Since the beginning of this year, a number of titanium dioxide enterprises have made use of their own advantages to compete for the layout of iron phosphate, lithium batteries and other new energy industry chains.

Anada pointed out that the iron phosphate market continued to boom in the first half of the year, and the supply of products fell short of demand. The company has actively planned the industrial layout and increased investment in the new energy industry. The first phase of the 50,000 t / an iron phosphate expansion project has been completed and put into production, and the output, sales, operating income and profits of iron phosphate have all increased significantly compared with the same period last year. During the reporting period, the company's main business income came from the sales of titanium dioxide and ferric phosphate. Among them, the sales income of rutile titanium dioxide accounts for 84.33% of the main business income, the sales income of anatase titanium dioxide accounts for 1.54% of the main business income, and the sales income of iron phosphate accounts for 14.13% of the main business income.

Anada previously announced that in view of the future development prospects of lithium iron phosphate market and the comprehensive comparative advantages of Tongling Nayuan, a holding subsidiary, in terms of technology and cost, in order to further enhance economies of scale and profitability, Tongling Nayuan expanded the existing iron phosphate production plant to 50,000 tons / year battery-grade nano-iron phosphate production plant in two phases.

On the evening of August 12, Longbai Group issued four announcements in succession, three of which were related to the lithium battery industry chain. Specifically, Longbai Group plans to invest 2 billion yuan to build an industrialization project with an annual output of 200000 tons of lithium battery materials; to invest 1.2 billion yuan to build an annual production capacity of 200000 tons of battery material grade ferric phosphate; and to invest 1.5 billion yuan to build an annual production capacity of 100000 tons of artificial graphite anode materials for lithium batteries.

At the beginning of this year, China Nuclear Titanium dioxide announced that it intends to invest 12.108 billion yuan to build a lithium iron phosphate project with an annual output of 500000 tons in three phases, mainly to build a lithium iron phosphate production line and supporting facilities. In August, China Nuclear Titanium dioxide said that the company's lithium iron phosphate project is carrying out environmental assessment publicity and land use rights processing, and will choose the opportunity to start construction according to the project design plan after the formalities are complete.

Titanium dioxide enterprises have natural advantages in the production of lithium iron phosphate, which will produce waste acid, ferrous sulfate and other wastes in the production process, which can be made into lithium iron phosphate after further processing. Analysts point out that the construction of lithium iron phosphate production line can realize the efficient value-added utilization of waste acid wastewater from titanium dioxide enterprises, effectively reduce the manufacturing cost of titanium dioxide, extend the industrial chain of circular economy, and realize the green circular economy of comprehensive utilization of resources.

Lithium iron phosphate is one of the common cathode materials in the market, which is mainly used in new energy vehicles, energy storage and other fields. The Huaan Securities Research report predicts that the demand for lithium iron phosphate will usher in a big year of growth in 2021, and the demand for the whole year is expected to grow by 80% year on year.