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Oriental Titanium output in September hit a new record high Titanium dioxide prices rose to the year's high What is the status of the market?
SMM October 17 news: vanadium and titanium shares official micro October 17 news, in September, the Oriental titanium industry production organisation is safe, stable and orderly, production capacity continues to break through, titanium dioxide production increased by 1.13% year-on-year, hitting a new record high. And according to SMM data, China's titanium dioxide production in September 2023 was 300,000 tonnes, the month's output decreased by 9.2% from the previous month, an increase of 6.0% year-on-year, the cumulative output of 2.83 million tonnes, a cumulative year-on-year decline of 2.3%. In September, the national production decline, year-on-year increase in the background, vanadium and titanium shares of the Oriental titanium industry titanium dioxide production growth is also to be congratulated.
Although vanadium and titanium shares have not yet announced the third quarterly report, but from its 2023 semi-annual report can also be seen in the first half of its production and performance changes: in the first half of the year, the company has completed a total of 24,240 tons of vanadium products (V2O5), an increase of 3.23% year-on-year; 131,700 tonnes of titanium dioxide (including 7,190 tonnes of chlorinated titanium dioxide), an increase of 1.03% year-on-year; titanium slag 106,390 million tonnes, a year-on-year decrease of 7.39%. In addition, vanadium and titanium shares in the half-yearly report also explained the reasons for the changes in the first half of the performance: in the first half of the year, the company achieved operating income of 7.627 billion yuan, compared with the same period of the previous year, a decrease of 621 million yuan, a decrease of 7.53%, mainly due to the decline in the price of vanadium and titanium products compared with the same period of the previous year; operating costs of 6.524 billion yuan, compared with the same period of the previous year, a decrease of 100 million yuan, a decrease of 1.51%. Net profit attributable to shareholders of listed companies 603 million yuan, 470 million yuan less than the same period last year, a year-on-year decline of 43.81%, mainly due to vanadium, titanium product prices than the same period last year. Not only vanadium and titanium shares in the first half of the performance of titanium prices, performance decline, a number of titanium dioxide companies are affected by titanium prices fell year-on-year, and other factors, the performance has declined. Into the third quarter titanium dioxide ushered in three declared up, many listed companies also said in its price increase announcement, titanium dioxide product price adjustment, is expected to enhance the overall performance of the company will have a positive impact.
The price fluctuation of titanium dioxide is closely related to the production and operation of titanium dioxide enterprises. According to the SMM quotation, on October 17, the price of rutile titanium dioxide was reported at RMB 16,500-17500 per tonne, with an average price of RMB 17,000 per tonne, which was reached after the rutile titanium dioxide rose by RMB 250 per tonne on October 9, and the average price of RMB 17,000 per tonne was also the high point of the year. According to SMM research, after the price of titanium dioxide rose to the year's high, manufacturers more than the implementation of the previous order, the recent new orders have been scaled down. With the sixth wave of price increases in late September ushered in the year, supply and demand sides into a stalemate, the downstream market for the current price of titanium dioxide acceptance of the lower willingness to titanium dioxide, titanium dioxide companies will also focus on the delivery of pre-orders, the volume of new orders is limited, part of the titanium dioxide enterprise pessimistic view of the market. There are also industry insiders said, considering the high cost of titanium raw materials, titanium dioxide market spot shortage, some titanium dioxide enterprises order to November, titanium prices short-term downward space is limited.
[Source - Shanghai non-ferrous network].