Tio2 Market Analysis before 2021

Brief

From January to September of 2020, the comprehensive output of the whole industry reached about 2.4 million tons, and the total output for the year is expected to reach about 3.4 million tons, an increase of 4.0% year-on-year
While the domestic market environment is gradually improving, the export data also maintains a good momentum. From January to August 2020, the cumulative export volume of titanium dioxide was close to 780,000 tons, a significant year-on-year increase of 18.36%. It is expected that the total export volume for the year will exceed 1.2 million tons, setting a new historical record. To be sure, the export to the international market is still a very important factor supporting the prosperity of titanium dioxide in the latter part of this year and in the future.
As the price of titanium ore continues to run at a high level, the current price of titanium ore in Panxi has reached 298 usd/ton (EXW & not VAT), causing the production costs of major domestic titanium dioxide producers to continue to increase, forcing titanium dioxide producers to continuously adjust their Product prices, coupled with the renewed large-scale outbreak of the global new crown virus, has caused overseas shipping prices to continue to skyrocket, which has caused the domestic titanium dioxide CIF prices to continue to rise, further reducing the price gap with international titanium dioxide suppliers. In addition, due to RMB since the second half of this year Continued appreciation, these reasons have had a certain impact on the export of titanium dioxide in early 2021, so we remain cautious about the export situation in early 2021.

The current domestic titanium dioxide market situation:

1. The supply of domestic titanium dioxide manufacturers is still very tight, basically every one has no inventory, and the supply to first-level agents has also been reduced by 20%-30%. Now, the big manufactures are raising funds for purchases.

GDRO (000545.SZ) intends to increase the capital of its subsidiary Nanjing Jinpu Supply Chain

GDRO (000545.SZ) issued an announcement that the company held the fourteenth meeting of the seventh board of directors on November 17, 2020. It reviewed and approved the “Proposal on Capital Increase in Wholly Owned Subsidiaries” and agreed to Jinpu Supply Chain Management Co., Ltd. (referred to as “Nanjing Jinpu Supply Chain”) increased its capital. After the capital increase, the registered capital of the supply chain company increased from RMB 10 million to 550 million.

Lomon Billions (002601.SZ) 2 billion yuan medium-term notes was approved by the China Interbank Market Dealers Association.###

Lomon Billions (002601.SZ) issued an announcement that recently, the company received the “Notice of Acceptance of Registration” issued by the China Interbank Market Dealers Association, and the Association of Dealers agreed to accept the company’s medium-term notes registration.It is clearly stated in the “Notice” that the company’s medium-term notes have a registered amount of 2 billion yuan, and the registration limit is valid for 2 years from the date of signing of the “Notice”, and is jointly underwritten by Zhongyuan Bank Co., Ltd. and China Merchants Bank Co., Ltd.

15 billion locks in vanadium and titanium resources CNNC HUA YUAN Titanium Dioxide Co., Ltd plans to build an industrial ecosystem in Panzhihua

CNNC HUA YUAN Titanium Dioxide Co., Ltd (002145.SZ) announced that it has signed a strategic cooperation framework agreement with the Panzhihua government to build a local vanadium and titanium industry ecosystem and extend the vanadium and titanium industry chain. The total investment is estimated to be about 15 billion yuan. The staff of the company’s securities department told reporters from the Financial Associated Press that the investment is to lock in resources in Panzhihua. With the rising prices of vanadium and titanium, they hope to find companies with vanadium and titanium resources and financial difficulties in the region to build The industrial ecosystem reduces the company’s production cost ratio.The above-mentioned staff told the reporter of the Financial Association: “This investment is to obtain resources of vanadium and titanium through debt restructuring and other means.

On the one hand, it can form a resource guarantee in the raw material company, and on the other hand, it can be extended to the upper reaches of the vanadium and titanium industry chain. R&D and production of high-end products. The project initiated the establishment of an M&A fund in the name of a listed company. The partners have not yet been determined, but the site selection and target company have preliminary intentions. The company and the government will implement the matter as soon as possible. Information disclosure shall prevail.” According to data, Panzhihua is located in the Panxi Plateau and has rich vanadium-titanium magnetite resources. Its vanadium reserves rank third in the world, and its titanium reserves rank first in the world. It has the title of “China’s Vanadium and Titanium Capital”.

This investment is through asset restructuring, debt restructuring, technological upgrading and other methods, taking the debt restructuring provided by Panzhihua government-owned enterprises as the starting point, selecting companies with restructuring feasibility and restructuring value as the investment targets, and building comprehensive utilization and high value-added Vanadium and titanium production capacity, extend the vanadium and titanium industry chain, and improve resource utilization efficiency. The company stated that the strategic cooperation between the company and the Panzhihua Municipal Government is an important measure for the company to initiate investment and integration in Panzhihua. It will help the company rely on the rich vanadium and titanium resources in Panzhihua to optimize and upgrade the company’s industrial structure and effectively enhance the company’s industry The competitive strength of the company lays a solid foundation for the establishment of an industrial layout of “vanadium titanium resources + titanium oxide + metal titanium”.*

2. The market supply of rutile titanium dioxide is very tight, and the supply of anatase titanium dioxide is very sufficient, but the sales of anatase titanium dioxide are not optimistic due to the decrease in terminal applications. The current price of rutile titanium dioxide is between 2290usd/ton and 2450usd/ton. The price of anatase titanium dioxide is 1985usd/ton.

3. The orders for rutile titanium dioxide products received by various domestic titanium dioxide suppliers are basically at the end of December, while the titanium dioxide inventories of titanium dioxide manufacturers are very tight, and the inventory is basically maintained at about one month.

4. The new domestic production capacity will be gradually released in 2021 and 2022, including chlorinated titanium dioxide and sulfuric acid titanium dioxide.