Titanium dioxide price bottoms out and reverses the upstream layout of longmang power

China's long-term dependence on imports of high-quality titanium chloride slag will be broken by longmangbaili (002601) On February 26, longmangbaili announced that it planned to invest 2 billion yuan to form an annual production capacity of 300000 tons of titanium chloride slag The reporter of securities times · e company learned that after the completion of the above project, the raw materials of titanium dioxide and titanium slag from the chlorination process of longmangbaili will be self-sufficient As the leader of titanium dioxide industry, the upstream layout of longmang power is based on the background that the price of titanium dioxide has reached the bottom and is to be increased According to industry analysis, the cost of sulfuric acid titanium dioxide in China has increased to 14000-15000 yuan / ton, and the market price is close to the cost line, so there is room to go up in the future In the afternoon of February 26, longmang Baili announced that the company signed the investment agreement for the 500000 ton titanium concentrate upgrading and transformation titanium chloride slag innovation project with the people's Government of Yanbian County on the same day, and planned to invest 2 billion yuan to form an annual production capacity of 300000 tons of titanium chloride slag for the production of titanium dioxide and sponge titanium by chlorination process According to the company, the project aims to substantially improve the utilization value of titanium concentrate in Panxi area, obtain high-quality titanium chloride slag products that meet the requirements of titanium dioxide production by chlorination process, break the adverse situation that China's long-term high-quality titanium chloride slag relies on imports, and realize the company's development strategic layout "These 300000 tons of titanium chloride slag are high-purity and high-quality products It is expected that titanium dioxide produced by chlorination process can be formed in the amount of 1:1 That is to say, after the completion of the above titanium chloride slag, it will meet the annual demand of 300000 tons of titanium dioxide produced by longmangbaili." In an interview with reporters, the relevant person in charge of longmangbaili said that the titanium slag used in the production of titanium dioxide by chlorination process was mainly imported, which had the problems of high cost and unstable supply After realizing the independent supply of raw materials, not only can the cost be reduced, the raw material end be controlled to achieve stable production, but also environmental protection production can be realized, further enhancing the enterprise in the industry The right to speak At present, longmangbaili has arranged an annual production capacity of about 800000 tons of upstream titanium ore, which can meet more than 70% of the raw material supply of the enterprise Since then, the company will continue to make efforts to upstream layout, through further acquisition of domestic and foreign high-quality titanium ore targets, to achieve full integration of the industrial chain Although the price of titanium dioxide in China has fluctuated slightly since last year, longmangbaili still keeps the upward trend of performance In the first three quarters of 2018, the company achieved a net profit of 1.97 billion yuan, up 2.59% year on year The company expects to achieve a net profit of RMB 2.252 billion to RMB 3 billion in 2018, with a year-on-year growth of 10% to 20% The price of titanium dioxide has reached the bottom just after the Spring Festival of 2019, and the domestic titanium dioxide ushered in the price increase mode On February 13, longmangbaili announced that the company decided to increase the sales price of various types of sulfuric acid titanium dioxide by 500 yuan / ton for domestic customers and 100 dollars / ton for international customers on the basis of the original price from December 12 Influenced by the leading price increase, more than 20 manufacturers in China, including CNNC titanium white and Jinpu titanium industry, have successively landed and announced the increase, with the range of 500-800 yuan / ton The industry's favorable atmosphere has been established Yang Xun, an analyst in titanium industry, said that at present, the comprehensive costs of main raw and auxiliary materials, environmental protection, labor and other aspects of most conventional producers are getting higher and higher The comprehensive costs of rutile titanium dioxide produced by sulfuric acid process have reached 14000-15000 yuan / ton, and there is a growing trend According to the current price level, even a further 500 yuan / ton is reasonable In this regard, the relevant director of longmang Baili also said that in terms of demand, the demand for overseas titanium dioxide has continued to grow Although China is facing real estate regulation and control, public rental housing and other policies for the benefit of the people still make the demand of the coating industry unchanged In terms of supply, in recent years, the titanium dioxide industry in China has not increased production capacity On the contrary, due to the supervision of environmental protection and production restriction, some substandard enterprises have been closed down, which further improves the industry concentration At present, the supply and demand environment of domestic titanium dioxide market is different from that of a few years ago In addition, with the cost moving up, the market price can not return to the previous level of less than 10000 yuan per ton.