The photo shows price trend of the titanium dioxide in China. (Source: Baiinfo)
BEIJING, June 21 (Xinhua) -- Titanium dioxide industry in China has performed excellently so far this year with many listed companies in the industry forecasting a sharp rise in their profits in the first half of this year, the Shanghai Securities News reported on Monday.
The average titanium dioxide price increased to 21,100 yuan per metric ton (tonne) in this June compared with the 14,000 yuan/tonne in the same period of last year, representing a jump of 51 percent, according to baiinfo, a commodity information provider in China.
The price of titanium dioxide kept rising almost every month since the third quarter of last year.
The rising costs and the improved supply-demand relations have lent support to the titanium dioxide price hike, said industry insiders, adding that from the perspective of cost, the sharp increase in raw material prices has provided strong support to the rise in titanium dioxide price. On the demand side, with the gradual recovery of the global economy, the demand for titanium dioxide continues to increase, and the industry's boom cycle has improved significantly.
Soochow Securities believed that with the recovery of the global economy, China's exports of titanium dioxide have continued to increase, with a total of 435,100 tonnes exports from January to April this year, a year-on-year increase of 10.9 percent.
Thanks to the boom, many listed companies engaged in the titanium dioxide production have forecast significant increases in their business performances for the first half of the year.
CNNC Hua Yuan Titanium Dioxide (002145.SZ) announced recently that its net profit in the first half of the year is expected to be in a range from 613 million yuan to 735 million yuan, a year-on-year increase of 150 percent to 200 percent.
The Shenzhen-listed company said that during the period, the rutile titanium dioxide market was in a strong business cycle, and demand for the products exceeded supplies, and the sales price increased significantly year-on-year.
Lomon Billions Group (002601.SZ) estimated its net profit in the first half of the year to be from 2.327 billion yuan to 2.974 billion yuan, an increase of 80 percent to 130 percent year-on-year.
Listed companies such as Yibin Tianyuan Group (002386.SZ), GPRO Titanium Industry (000545.SZ) and Shandong Lubei Chemical (600727.SH) also expected a sharp increase in the net profits for the first half of the year. (Edited by Hu Pingchao with Xinhua Silk Road, hupingchao@xinhua.org)
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