Nearly 70% of Listed Companies' Net Profit Declines
In the first half of this year, affected by adverse factors such as rising raw material prices and weak downstream "volume and price", the net profit of domestic titanium dioxide listed companies generally declined.
According to Oriental Fortune data, in the first half of this year, only 4 of the 12 listed titanium dioxide listed companies achieved double growth in revenue and net profit, and 8 of them experienced a decline in net profit, accounting for 67%.
Among the 12 titanium dioxide listed companies, 8 companies saw a decline in net profit in the first half of the year. Among them, 6 companies such as China Nuclear Titanium Dioxide and Jinpu Titanium Industry increased their incomes but not their profits.
Zhang Xiaorong, president of Deepin Science and Technology Research Institute, said in an interview with a reporter from Securities Daily: "In the first quarter of this year, due to rising raw material prices, titanium dioxide prices rose under the support of costs. In the second quarter, the titanium dioxide market trend weakened, from April to May Affected by the local epidemic in the month, some titanium dioxide manufacturers reduced production and stopped production. In June, the off-season began, the downstream market demand shrank, the price of titanium dioxide continued to decline, and many companies increased revenue without increasing profits."
From the perspective of raw materials, the average price of 46% titanium concentrate in Panxi in the first half of this year was 2,304 yuan/ton, a year-on-year increase of 3.2%; the average price of sulfuric acid was 758 yuan/ton, a year-on-year increase of 91.38%; the average price of petroleum coke was 4,534 yuan/ton. tons, a year-on-year increase of 100.4%.
In addition to the rise in raw materials, the weak downstream "volume and price" is also the main factor behind the decline in the performance of related companies. Longzhong information data shows that since June this year, the domestic price of titanium dioxide has dropped significantly, with a drop of about 5,000 yuan / ton. Entering the traditional peak season of "Golden Nine", the price of titanium dioxide continued to decline. The average price in early September was 16,352 yuan / ton, down 7.38% from the beginning of August.
Zhang Xiaorong also believes: "Due to the downturn in the downstream real estate industry, the demand for titanium dioxide is under great pressure, and it is difficult to strengthen, and the price may continue to fall."
