① Following the “return” of the price adjustment letter between Longbai Group and Huiyun Titanium Industry yesterday, CNNC Titanium Dioxide and Anada announced successive increases in the price of titanium dioxide this afternoon. ② An industry insider told the Financial Federation reporter, “Currently, the domestic titanium concentrate market is strong and improving, and the increase in production costs has forced some titanium dioxide manufacturers to follow the price increase. At the same time, demand for paint and paint in some overseas markets has maintained a growing trend, which has also boosted exports of titanium dioxide.”
Financial Services Association, Feb. 21 (Reporter Zhao Zixiang) The Spring Festival holiday has just ended, and the familiar “drama” of the price adjustment for titanium dioxide has once again been staged. Following yesterday's “comeback” letter from Longbai Group (002601.SZ) and Huiyun Titanium (300891.SZ), this afternoon, CNNC Titanium (002145.SZ) and Anada (002136.SZ) issued announcements to officially announce the price increase of titanium dioxide. At this point, it is just over a month since the industry's last round of collective price adjustments.
Huiyun Titanium stated in the price adjustment letter that the price increase is based on factors such as current domestic and international titanium dioxide market conditions and the prices of raw and auxiliary materials. As an investor, the Financial Services Association reporter learned from the China Nuclear Titanium Dioxide Securities Department staff that the decision to raise titanium dioxide products was made today. This price adjustment is mainly due to good domestic and international market conditions.
A CFA reporter noticed that compared to before, this round of titanium dioxide price adjustments also involved international companies such as Venator (Venator) and Kronos (Kronos). As of press release, there are currently 4 domestic listed companies that have clearly adjusted their prices, and sales increases for domestic customers range from 500 to 700 yuan/ton.
According to CNNC's titanium dioxide announcement, the sales price of the company's various types of titanium dioxide will be raised comprehensively from February 21. Among them: the sales price for domestic customers increased by 700 yuan/ton, and the sales price for international customers increased by 100 US dollars/ton.
The company said it will closely track the price trend of titanium dioxide and changes in the supply and demand situation, and adjust the price of titanium dioxide products in a timely manner. The overall increase in sales prices of the company's main products will help further enhance the company's sustainable profitability, improve the company's market position and influence, and is expected to have a positive impact on the company's operating results.
Anada said in the announcement that according to recent domestic and international titanium dioxide market demand and rising raw material prices, the company decided to raise the sales price of its main products starting February 22. The domestic sales base price for rutile titanium dioxide and anatase titanium dioxide will all increase by 700 yuan/ton, and the foreign trade sales base price will increase by 100 US dollars/ton.
“So far, on the basis of the price increase on January 20, the company once again raised the price of its main products. The domestic sales base price of rutile titanium dioxide and anatase titanium dioxide has increased by a total of 1,400 yuan/ton, and the foreign trade sales base price has increased by a total of 200 US dollars/ton.”
Regarding the current changes in downstream market orders, CNNC Titanium White staff said, “Since they belong to different departments, there is generally no direct contact with sales data, and the information obtained later may be lagging behind.”
A CFA reporter noticed that at the beginning of this year, nearly 10 manufacturers, including Longbai Group (002601.SZ), Anada (002136.SZ), and Huiyun Titanium (300891.SZ), raised the price of titanium dioxide simultaneously. Among them, CNNC Titanium announced an official price increase on January 23. However, in the last round of price adjustments, the company raised sales prices by 500 yuan/ton for domestic customers. Compared with the next round of price adjustments, the increase in the new round of increases has increased.
It is worth mentioning that not only domestic companies participated in the new round of titanium dioxide price adjustments. Recently, the world-famous chemical giant Venator (Venator) also issued a price adjustment notice to raise the global sales price of titanium dioxide by 200 US dollars/ton, with the effective date for the Asia-Pacific region on February 15, Europe, the Middle East and Africa on March 1, and for North America and Latin America on April 1; the price of Kronos (Kronos) products in the Middle East, Africa and Asia will increase by 180 euros/ton or 200 US dollars/ton.
Why did the price of titanium dioxide rise again in a short period of time? An industry insider told the Financial Federation reporter, “On the one hand, the domestic titanium concentrate market is currently showing a strong upward trend, and the increase in production costs has forced some titanium dioxide manufacturers to follow the price increase. At the same time, demand for paint and paint in some overseas markets has maintained a growing trend, which has also boosted exports of titanium dioxide.” However, the Financial Services Association reporter noticed that there are also market voices that currently most downstream factories have not fully resumed production, and the market demand situation is unclear. Under such circumstances, price increases may trigger a series of potential risks that need to be treated carefully.