According to Huizheng Information, in the first half of 2024, the domestic titanium dioxide price trend showed a fluctuating upward trend followed by a downward trend, and the profit of titanium dioxide manufacturers, facing the situation of export restrictions in many countries, became even more strained.
According to the statistics of Buychemicals Research Institute, in January-June 2024, the average domestic price of rutile-type titanium dioxide was 16,029 yuan/ton, with the first half average price 3.47% higher than the same period last year. In the first half of the year, China’s titanium dioxide production capacity increased by 390,000 tons/year, and with the capacity increase, production also increased significantly, with a cumulative titanium dioxide production of 2.07 million tons in January-June 2024, a year-on-year increase of 15.64%. Although domestic demand was weak, the company’s export orders were still good. According to customs data, China’s titanium dioxide exports in the first 5 months of 2024 were 796,200 tons, a year-on-year increase of 12.05%.
In the first half of 2024, China’s apparent titanium dioxide consumption was around 1.2 million tons, an increase of 3.16% year-on-year. In the first half of the year, enterprises had an active export willingness, and the export volume of titanium dioxide enterprises increased significantly. From the perspective of raw material costs, the price of titanium ore was about 7% higher than last year, and the price of sulfuric acid was about 35% higher than last year. The high prices of titanium ore and sulfuric acid led to higher costs of titanium dioxide than the same period last year, and the industry’s profits were lower than the same period last year.
Comprehensively considering factors such as titanium dioxide prices, costs, exports, and supply and demand, the domestic titanium dioxide industry data in the first half of 2024 was good, showing an overall increase in both volume and price, but a decline in corporate profits.
According to the performance forecast recently disclosed by Jinpu Titanium Industry, it is estimated that in the first half of 2024, the net profit attributable to the parent company will be a loss of 19.6025 million yuan to 27.4434 million yuan, compared to a loss of 78.4098 million yuan in the same period last year; the net profit after deducting non-recurring items will be a loss of 21.9232 million yuan to 30.6925 million yuan, compared to a loss of 87.6927 million yuan in the same period last year.
According to the performance forecast released by Vanadium Titanium, it is estimated that in the first half of 2024, the net profit attributable to shareholders of the listed company will be 130 million yuan to 160 million yuan, a decrease of 73.47% to 78.44% year-on-year.
Looking ahead to the second half of the year, under the ongoing weak domestic demand, the supply side still faces factors such as the release of new production capacity and the potential obstruction of exports, while the domestic real estate industry still faces a slowdown in development investment growth, leading to insufficient operation in the downstream coatings industry, exacerbating the domestic supply-demand imbalance. But more seriously, there is an “export crisis”. Currently, China is the largest trade partner of the European Union. Facing the sanctions from the EU, Chinese companies should actively develop the markets of the “Belt and Road” cooperation countries, rather than “price wars” at home.
