Asia's largest titanium dioxide manufacture is trapped in an environmental vortex: Lomon Billions has been accused of sewage for many years

Source: China Business News

  Original title: Asia’s largest titanium dioxide company is trapped in an environmental vortex: Lomon Billion (31.600, -0.05, -0.16%) has been accused of “sewage” for many yearshttps://finance.sina.com.cn/stock/relnews/cn/2020-12-19/doc-iiznezxs7758225.shtml

The upcoming large-scale routine maintenance may increase the tight supply situation

Just a week after the last wave of the price increase which mostly driven by ilmenite cost, there is no any sign that the peak is coming.
But something worse, the upcoming large-scale routine maintenance will start soon.

The coming new year holidays of the western world are expected to given factories a nap time after busy productions in the post-pandemic era.

Demand resumes and supply is tight, and many companies successively increase the price of titanium dioxide products

Am AI translation version of Original article: 需求恢复现货供应紧张 中核钛白等多公司上调钛白粉产品价格 dated: 2020/12/04 08:48am UCT+8

Up and up. Since July, Titanium dioxide keeps rising. In the last month of 2020, Titanium dioxide again ushered in the tide of price increases. 1-3 December,LomonBillions(31.650), -0.72, -2.22%), Shandong Dongjia, CHTI, Shandong Dawn and other titanium dioxide enterprises announced price increases.

Tronox and Kronos announced price increase 10.26.2020

With the trend shows no sign of turning down, the international titanium dioxide supply giants announced the price increase again in the same day.

KRONOS INTERNATIONAL, INC. announced a 150USD/MT increase of the price to all grades, meanwhile, tronox announced 120USD/MT of the price to all with official increase letter.

Supply of titanium is expected to remain tight for the next two years

This paper is an AI translation part of
Understanding the current round of titanium dioxide market from the price increase of titanium raw materials–Titanium dioxide industry research & tracking frame serial 4, by DONGXING SECURITIES.

DONGXING SECURITIES
_Click to view the Original paper.

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.

2020 Titanium Slag Market Analysis

China Import sistuation

In 2019, the mine in Shapic, Australia ceased production. Australian titanium concentrate rarely flows into China again.
Kenya’s output began to decrease in 2019. Further reduction in 2020.
It can be seen that in recent years, foreign high-quality titanium slag has entered the Chinese market with a decreasing trend year by year. At the same time, Kenya Base Resources expects that for the 21st fiscal year, the output from July to June 2020 will be only 270,000 tons.
It will further reduce the entry of foreign high-quality titanium slag into the Chinese market, especially the high-titanium slag materials suitable for the chloride process will further reduce the entry into the Chinese market.

China tio2 slag imports and tio2 exports analysis in the first half of 2020

  1. According to customs statistics, China imported about 200,000 tons of titanium slag in June, a year-on-year increase of 22.41% and a month-on-month decrease of 37.94%. The top three countries in terms of imports are: Australia, 70,481 tons, Mozambique, 62,141 tons, and Vietnam, 27,301 tons, respectively. At 36%, 32%, 14%.

June-2020-titanium-slag-import

Summary of tio2 exported by China from Jan.to May. 2020.

From Jan.2020 to May 2020, the China exported 482327 metric tons of titanium dioxide to 128 countries/regions. The largest importer is India, imported 48736MT of tio2 from China. In the end of the rank, it is Trinidad and Tobago, imported 2MT of tio2 from China.
titanium dioxide imported from China Jan.-May 2020 top20.
During the first three months of 2020, in the pandemic of COVID-19 in China, the importers rush to make stock. And you can see that the volume in this period was not jumped down heavily. But when it came to the April and May, with the spreading of COVID-19 globally, the major economy had shut down, and volume was just less than half of its in March and hit the historically low point.
titanium dioxide imported from China Jan. to Mar. 2020
“Now with the reopening of the economy in major economy, we have very good reason to believe that the needs will gradually back to normal.”, as to the expert estimated.
With the historically shrinking of needs in tio2 industry, the price hit a new low in the early of June 2020, and then kept stable for a month. But in the end of this month, the market seems to smell the opportunity for price increases, and some of the daredevils are giving it a try to intrease it.

Analysis of China's titanium dioxide and titanium ore market in April 2020 and market forecast for May

After the outbreak of COVID-19 in China, the entire industry market has undergone strong changes. The domestic construction industry is basically still in the unopened state, which directly and indirectly causes the demand for coatings and titanium dioxide to be greatly reduced, and domestic sales are basically very difficult.
Due to the outbreak of foreign epidemics, basically all countries have adopted measures to close the country to prevent the epidemic from further out of control. Therefore, overseas sales of titanium dioxide are basically at a standstill. As a result, the domestic sales of titanium dioxide in April were not very optimistic, especially the price of titanium dioxide in the first-tier domestic manufacturers fell sharply in April, and the market price was in chaos. At the same time, the latest price is already close to its cost price. Will stay for a long time. But on the other hand, many domestic factories have begun to fully restore their production capacity. It is expected that the actual output of titanium dioxide factories will reach a higher level in May. At the same time, it is expected that the price of titanium dioxide will steadily decrease partly, not as large as in April. Adjust the price by a margin. In addition, due to the gradual control of the domestic epidemic situation, the resumption of production and production in various industries will continue to improve, and the sales of titanium dioxide will gradually rebound.
2020 Chinese TiO2 Price

In 2020, the titanium ore market rose directly from 1400 yuan at the beginning of the year to 1550-1600 yuan. The main reason is that the purchase volume of titanium ore has increased significantly. Due to the very tight purchase of ore, the supply of raw materials for medium ore is very tight, which has pushed up the price of medium ore. Titanium suppliers’ reluctance to sell gradually increased from January 2020 to the end of February to 1550-1600 yuan, and then the willingness of titanium dioxide factories to purchase titanium ore was gradually lowered due to the impact of the epidemic, resulting in the gradual price of titanium ore in Panzhihua region. Down, the 10 mines in the Panzhihua area as of April 27, 2020 have fallen to around 1,350 yuan.
It is expected that the titanium ore market in May will stabilize with the changes in the titanium dioxide market, and prices will not be adjusted significantly, and the balance of supply and demand for titanium ore will be further stabilized. At the same time, imported titanium ore, especially high-grade titanium ore, will maintain the current price. Due to various reasons, imported high-grade titanium ore will not undergo major price changes due to the epidemic situation. The supply of imported titanium ore is relatively comparative tension.
2020 Chinese ilmenite price

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