Titanium dioxide industry continues: Jinpu titanium industry price increase letter Anada expects high performance growth last year

Following the January price increase letter issued by a number of titanium dioxide enterprises at the end of 2021, Jinpu Titanium Industry (000545.SZ) followed by the price increase letter on the evening of January 4, saying that its products will be increased by 1000 yuan / ton to various domestic customers and $150 / ton to international customers from January 5, 2022.

Meanwhile, 002136.SZ issued a forecast for 2021 that it expects to make a net profit of 169 million yuan to 202 million yuan in 2021, up 160% from a year earlier.

In this regard, some people in the industry told the Financial Associated Press that large titanium dioxide enterprises in 2021 are basically in a state of full production and sales, and the increase in performance is not surprising. But at this time, the price increase letter of Jinpu titanium industry can guarantee that the price of titanium dioxide will not be reduced at least in the first quarter, which is good for the industry.

The annual report of the industry is expected to rise.

In response to the sharp increase in performance, Anada related sources told the Financial Associated Press that the company's titanium dioxide products are in full production and full sales throughout the year. In terms of production, the company's total output of titanium dioxide in 2021 increased by more than 20% over last year. In addition, the growth of the company's fourth-quarter performance is driven by the 50, 000-ton battery-grade iron phosphate expansion project of its subsidiary Tongling Nayuan Technology. After the project was put into production in August, after a trial run, it reached full production in the fourth quarter, with an additional output of more than 12000 tons of iron phosphate, and almost all of them were sold, and the direct sales revenue increased by more than 200 million yuan.

In addition to Anada, before New Year's Day's holiday, China Nuclear Titanium dioxide (002145.SZ) issued a performance forecast showing that the company's net profit in 2021 is expected to be 1.188 billion yuan to 1.426 billion yuan, an increase of 150% over the same period last year.

In this regard, titanium dioxide enterprises told the Financial Associated Press that, like Anada and medium Nuclear Titanium dioxide, the annual performance of titanium dioxide listed companies last year will show a sharp rise in an all-round way.

The reason for the sharp rise in performance is that the price of titanium dioxide has soared. According to statistics, the average price of titanium dioxide in 2021 shows an overall upward trend. The average transaction price of rutile titanium dioxide by sulfuric acid method was 19700 yuan per ton, a five-year high, with an increase of 20.83%. The average transaction price of anatase titanium dioxide during the year was 16846 yuan / ton, an increase of 37.32%.

In addition, in the second half of 2021, there was a substantial correction in the raw material price of titanium dioxide, which improved the profit margin of titanium dioxide. Among them, 46% titanium concentrate, the main raw material of titanium dioxide, has been reduced since August, with the lowest price less than 2100 yuan / ton, and has since stabilized at less than 2300 yuan / ton, which is 200 yuan cheaper than in the first half of the year. The price of sulfuric acid also fell sharply in the fourth quarter, from 900 yuan / ton at its peak to less than 550 / ton, reducing the cost pressure on titanium dioxide enterprises and promoting the profits of titanium dioxide enterprises to rise.

The price increase may continue.

In fact, before the Jinpu titanium industry announced the price increase, at the end of December 2021, 002601.SH Group and China Nuclear Titanium dioxide and other enterprises successively issued price increase letters, announcing that domestic product sales increased by 1000 yuan / ton, and the international market increased by 150 US dollars / ton.

Industry insiders told the Financial Associated Press that although it is rare for the titanium dioxide industry to pile up and raise prices at the end of the year, as soon as the price increase letter from Jinpu titanium industry is issued, it can guarantee the first quarter of 2022 or even the first half of the year. Product prices will not fall.

A reporter from the Financial Associated Press learned from a number of titanium dioxide enterprises that at present, titanium dioxide enterprises have good sales orders, and some production enterprises have arranged orders to February this year. An enterprise personage told the Financial Associated Press that at present, the company has few long orders with downstream customers, large and high-quality customers adopt the monthly settlement mode, the production enterprises do not press the inventory, the downstream enterprises also pay back relatively quickly, and the overall operation of the industry is in a virtuous circle, so the price increase will continue.