Titanium dioxide production company's four major leading prices in the third quarter is expected to double

Long Buili announced on September 7 that due to the recent increase in the price of raw materials such as titanium ore, according to the market conditions, the company’s price committee has decided that the company’s sales price for sulfuric acid-based rutile titanium dioxide products will be based on the original price. Increased RMB 500/ton for domestic customers and increased USD 50/ton for international customers.

This is the first price increase since Long Puli experienced two price cuts in August, or is expected to open the domestic titanium dioxide market prices. "The market has rising conditions, but the rate of increase should not be optimistic."

Titanium dioxide industry rose to welcome the collective rise

It is understood that with the continuous deepening of supply-side reforms, industry access thresholds have been raised, small-scale titanium dioxide production companies continue to be eliminated, and the concentration of titanium dioxide industry has further increased. Domestic titanium dioxide production enterprises have been reduced from 46 in 2015 to 39 in 2016. Since 2016, titanium dioxide prices have ushered in a rising cycle. Titanium dioxide prices have risen to the highest level in the year since 2017, after which prices began to fall. In September, titanium dioxide prices ushered in a new round of rising prices.

For this time, the price of titanium dioxide rose, the market had expected. According to the analysis report of China Merchants Securities, the impact of environmental protection on the titanium dioxide industry is the entire industry chain, and the operating rate has been affected by titanium ore-titanium dioxide-coatings. The fourth batch of environmental protection inspectors began in August and the production of titanium dioxide in Sichuan and Shandong was significantly affected. After the environmental inspection team entered Sichuan, the production of titanium in the Panzhihua area in Sichuan was suspended almost completely. At the end of June 2017, the operating rate of the titanium dioxide industry was 63%. The overall operating rate was not high. In July, the overall industry utilization rate gradually decreased and maintained at 54%. Nearby, August is still less than 60%. According to the data, it is expected that the supply of Shandong and Sichuan will decrease by about 90,000 tons during the environmental verification period, which is equivalent to affecting about 40% of the monthly output in the country.

In this context, starting from late August, some companies in the market began to increase their quotations, but their adjustments have a relatively limited impact on the market. This time, the signal significance of the signal was very clear after Dragonlung, the leading company, announced the price increase. According to the report, in addition to Longxi Li, titanium dioxide manufacturers, including China Nuclear Titanium Dioxide, also raised the prices of their products.

At present, domestic titanium dioxide stocks are mostly concentrated in the upper reaches of the titanium dioxide enterprises, downstream and trading companies are generally low inventory or near zero inventory, while the domestic mainstream titanium dioxide enterprise inventory is also below the reasonable inventory level, so the company is also adjusted Among them, but in the context of the overall demand is not significantly improved, whether the company's upswing can ignite downstream and distributors of the stocking passion, and whether the increase in the implementation of the company in place is worth discussing.

Leading companies expect significant increase in performance

The increase in product prices will help the company's future performance to a certain extent.

Long Yaoli announced in an announcement on September 7, the company will closely follow the trend of titanium dioxide prices and changes in supply and demand conditions, and timely adjustment of titanium dioxide products. The adjustment of the price of this product will have a positive impact on the overall performance of the company. At the same time, the board of directors of the company reminds investors that the impact of this price increase on sales volume is still uncertain, and the duration of the new sales price cannot be determined, and there is a risk that product prices will continue to fluctuate.

However, listed companies such as Longxu Li have already earned a lot of pounds due to price increase of titanium dioxide. In the 2017 semi-annual report, Longnili stated that during the reporting period, titanium dioxide continued its 2016 boom cycle, the company's inventory was low, and product orders were sufficient. Under the tight supply and demand market conditions, the company focused on the industry. Pulse, the price of titanium dioxide was raised 5 times, which further provided guarantee for the growth of the company's operating performance. The company announced the first three quarters of 2017 performance forecast shows that from January to September this year, the net profit attributable to shareholders of listed companies was estimated to be 1.8 billion to 1.9 billion yuan, an increase of 1406.49% to 1490.18%.

The 2017 third quarterly earnings forecast released by CNI Titanium revealed that the net profit attributable to shareholders of listed companies from January to September is expected to be 290 million to 340 million yuan, an increase of 524.57% year-on-year to 632.26%. "The sales volume of titanium dioxide, the company's main product, has increased compared with the same period of last year. At the same time, sales prices have increased and the gross profit margin has increased."

According to Annette’s performance announcement for the third quarter of this year, it is expected that the net profit attributable to the shareholders of listed companies in the first three quarters will be approximately 120 million to 127 million yuan, an increase of 701.09% to 747.82%. Jinpu Titanium said that it expects to achieve a cumulative net profit of 1.1613 billion yuan to 135 million yuan in the first three quarters of this year, an increase of 140% to 180%.

From prototype to production, our Sheet Metal Stamping is one of the very best Cina has to offer. We make all kinds of types and shapes of covers, brackets, and flanges using presses from 10 up to 350 tons by a skilled yet low-cost labor force.

No matter how many different parts you need Custom Metal Stamp, whether it be in stainless steel or CRS, we provide progressive stamping and fabrication. Before we send anything off, every part is inspected to uphold the same quality and assurance QL Sheet Metal has operated by for nearly 10 years.

We`ve worked with high-profile clients that are leaders in their respective markets-and we`d love to add you to the list.

  • OEM/ODM service
  • QC inspection
  • ISO9001 certified
  • 10 years of experience

Sheet Metal Stamping

Sheet Metal Stamping,Custom Metal Stamp,Custom Steel Stamp,Stainless Sheet Metal

QL Sheet Metals Co.,Ltd , http://www.ql-metals.com