In 2021, titanium dioxide profits soared while coating firms faced losses. Explore the market dynamics and future outlook.
According to data, as of today, in the 2021 annual performance report and performance forecast of 12 titanium dioxide related listed enterprises, 10 listed enterprises in 2021 net profit doubled, and most of the enterprises plan to expand production.And the other side of the downstream coating enterprises, in the face of the rise of raw materials, have to raise product prices, according to incomplete statistics, after the year has nearly 100 coating enterprises announced product adjustment.
Twenty months of strong rise, titanium dioxide enterprises basin full bowl full
In 2021, the supply of titanium dioxide is in short supply, the price rises, upstream enterprises continue to expand production, but the huge demand still did not reduce the price, upstream enterprises have always maintained high profits.
According to the data, China's titanium dioxide production in 2021 was 3.813,5 million tons, up 8.58% year on year.The apparent demand for titanium dioxide was 2.740,200 tons, an increase of 274,000 tons from 2020.In addition, titanium dioxide prices are also very strong.Zhuochuang Information data show that the average price of titanium dioxide in 2021 showed an overall upward trend.Sulphuric acid method gold rutile titanium dioxide annual transaction average price of 19,700 yuan / ton, a new high in nearly 5 years, up 20.83%.Pertitanium titanium dioxide average price of 16846 yuan / ton, up 37.32%.
So how much do these titanium dioxide upstream enterprises earn?According to data, in the 2021 annual performance report and performance forecast of 12 titanium dioxide related listed enterprises, 10 listed enterprises in 2021 net profit to achieve double growth.Among them, Annada, Anning Shares, Lubei Chemical have released performance reports, 2021 net profit of 185 million yuan, 1.435 billion yuan, 493 million yuan, year-on-year growth of 184.57%, 104.85%, 113.62% respectively.Tianyuan shares, Panzhihua vanadium titanium, nuclear titanium dioxide, Longbin Group, Jinpu titanium industry, Huiyun titanium industry, Zhenhua shares are expected to double the net profit in 2021.Specific to the stock, Tianyuan shares are expected to net profit of the highest year-on-year growth.The company expects net profit in 2021 year-on-year growth of 447.99% -482.51%; Panzhihua vanadium titanium, nuclear titanium dioxide expected net profit growth of 236.03% -262.29%, 150% -200%, ranked second, third.
In the long run, titanium dioxide market demand continues to be strong, titanium industry continues to expand production, titanium dioxide price is expected to maintain high shock.
Profits continue to squeeze under, coating enterprises have moved up
Relative to the upstream enterprise high profit, downstream enterprise net profit are different degrees of decline, according to the China coating industry association recently released in 2022 China coating industry profit warning, by early March 2022, according to the latest research, rapidly due to the upstream raw material prices, most of the coating industry in China have losses.China Coating Industry Association called on the industry enterprises to pay close attention to profits and other business conditions, according to the upstream raw material market fluctuations and timely adjust the business strategy.
So how much do these paint downstream enterprises lose?According to the data, Nippon China achieved operating profit of 35.9 billion yen (about 2.0994 billion), down 18.3% year on year; estimated net profit of-580 million to-438 million; estimated net profit of-320 million to-470 million.
Under such circumstances, cost reduction and efficiency increase should become the main thinking problem of coating enterprises!
