echemi logo
Product
  • Product
  • Supplier
  • Inquiry
    Home > Coatings News > Paints and Coatings Market > Titanium dioxide price increases in the paint enterprises are "frost" in titanium dioxide enterprises but for "honey"?

    Titanium dioxide price increases in the paint enterprises are "frost" in titanium dioxide enterprises but for "honey"?

    • Last Update: 2020-08-23
    • Source: Internet
    • Author: User
    Search more information of high quality chemicals, good prices and reliable suppliers, visit www.echemi.com
    In 2017, the price of
    titanium dioxide
    beginning with the word "up", from the beginning of the year began to tighten the nerves of the downstream
    coating
    industry, so that
    coating enterprises
    in whether to carry out the corresponding product price increases between the forward and backward valley, such as in the throat. The unforcedness of the subsequent price changes of titanium dioxide also makes the living environment of coating enterprises more severe. But "A frost, B honey", for paint enterprises is the same as the "bad news" of titanium dioxide continued price increase phenomenon, but it seems to be a lot of titanium dioxide enterprises out of the operating difficulties of a great opportunity.
    on the evening of February 27, titanium dioxide company Anada (002136) disclosed its 2016 annual report, in which financial indicators showed that the company achieved revenue of 819 million yuan in 2016, up 35% YoY; It is understood that the company lost 130 million yuan in the same period in 2015, and benefited from last year's titanium dioxide rally, making it a profit in 2016.
    Also benefiting is one of the industry's leading listed enterprises in the nuclear titanium white, as a "more than state-owned enterprises" military-to-civilian enterprises, nuclear titanium white in recent years several floating - only two years after the listing in 2007, it is facing the risk of the de-listing of ST, after a multi-party game, finally re-emerged in 2012 through asset restructuring, but the performance has been poor. According to the results, its net profit for 2013 was 16.35 million yuan, while its net profit for 2014 was 30.58 million, while its 2015 full-year loss was 126 million yuan. In accordance with the conditions set by the stock exchange as specially treated (i.e., special treatmend: de-listing risk warning) stocks, China Nuclear Taibai has in fact reached the brink again.
    , however, in 2016 the rise of the titanium dioxide industry, so that the nuclear titanium white temporarily out of this situation. Although China Nuclear Titanium has not yet released its full-year 2016 results (the annual report was pre-approved on March 15), its net profit for the first three quarters of 2016 was 46.43 million as of September 30, 2016, surpassing the best full-year 2014 net profit after restructuring, with a cumulative price increase of about 32%. Combined with this time node after the price of titanium dioxide continues to rise trend, it is not difficult to guess that the full-year net profit of China Nuclear Titanium White in 2016 is definitely a beautiful figure to the satisfaction of all parties.
    as far as the titanium dioxide industry is now a veritable boss, although there is no demand for turning a profit, but it is undoubtedly the biggest winner under this wave of price increases. In recent years, The company's performance has been growing, nearly double that of the previous year, with a net profit of $111 million in 2015. Such a large net profit base, in accordance with the general law of market development, it is still a bit difficult for Weli Lenovo to double the growth rate of the same period last year in 2016, and the net profit of only 119 million yuan approved in the first three quarters of 2016 also seems to prove it.
    however, on October 28, 2016, the formal merger of Yuli union (002601) and titanium dioxide giant Sichuan Longyearin increased the likelihood that the company's 2016 results would continue to double. As a result of the merger, the production capacity of the titanium dioxide company, renamed Dragonfly, will be increased from 260,000 tons/year to 560,000 tons/year, ranking first in Asia, fourth in the world, and the annual net profit will not be less than 1 billion yuan.
    And it was not, the 2016 results report released on February 27th showed that operating income during the reporting period was RMB4,197 million, up 57.80 percent YoY, and net profit attributable to the parent company was RMB484 million, up 334.66 percent YoY. It is also understood that the merger of The union, with the help of titanium dioxide next rise, will become the world's largest titanium dioxide production enterprises target impact.
    These are just some of the data publicly disclosed part of the listed titanium dioxide enterprises in the titanium dioxide price trend to benefit, but in the number of enterprises in the titanium dioxide industry, there are many enterprises without public data. Although the specific profit situation is not known due to the lack of disclosure, but I believe that the industry as a whole, driven by price increases, most titanium dioxide companies since 2016 performance will not be too bad.
    from this point of view, after more than four years of downturn, the entire titanium dioxide market product prices finally entered a rising cycle in 2016, and will most likely continue this trend in 2017. However, this does not mean that titanium dioxide enterprises can "rest easy", after all, by market demand regulation caused by the price increase itself is very volatile, at any time may be due to titanium dioxide demand decline, limited capacity, inventory overload and other reasons into the off-season, production and exports fell sharply. Coupled with titanium dioxide is also facing upstream raw material prices or large fluctuations in the pressure, resulting in titanium dioxide rally to stop, and even the possibility of a sharp decline in prices is also there.
    so, titanium dioxide price increases for titanium dioxide enterprises are only "sugar-coated shells", and to effectively avoid the potential risks under the sugar-coated, or rely on a practical development strategy. Therefore, titanium dioxide enterprises need to timely use titanium dioxide product price increase period brought about by the financial advantages, increase research and development investment and independent innovation, improve production equipment, speed up the development and production of special, high-grade titanium dioxide, close to the market, to the field of environmental protection industry transformation, so that they can better withstand the test of the market, become the ultimate winner of the titanium dioxide industry.
    This article is an English version of an article which is originally in the Chinese language on echemi.com and is provided for information purposes only. This website makes no representation or warranty of any kind, either expressed or implied, as to the accuracy, completeness ownership or reliability of the article or any translations thereof. If you have any concerns or complaints relating to the article, please send an email, providing a detailed description of the concern or complaint, to service@echemi.com. A staff member will contact you within 5 working days. Once verified, infringing content will be removed immediately.

    Contact Us

    The source of this page with content of products and services is from Internet, which doesn't represent ECHEMI's opinion. If you have any queries, please write to service@echemi.com. It will be replied within 5 days.

    Moreover, if you find any instances of plagiarism from the page, please send email to service@echemi.com with relevant evidence.