Titanium dioxide prices have been high fever for eight months this year, and the sustained high fever for more than eight months has caused the performance of related titanium dioxide listed companies to increase significantly and the stock price has risen madly. However, several companies were happy and the companies in the downstream applications of titanium dioxide, such as coatings and papermaking, shouted “can't afford injuries†because of falling profits due to rising prices of raw materials. Ice Fire Two Heavens In the A-share market, listed companies producing coatings mainly include Jinlitai, Yusanxia A, Lotto, and Northwestern Chemical. Greeting cards with led lights Flashing Music Greeting Card, Music Valentine's Day Card, Greeting Card Flashing Led Module AST Industry Co.,LTD , http://www.astsoundchip.com
This year's chemical market is in full swing, and the prices of various chemicals have skyrocketed the shares of related listed companies. Among them, titanium dioxide can be described as the leading product in this round of rising prices of chemicals. Since the first quarter of this year, the price of titanium concentrates as a raw material for titanium dioxide has been continuously rising. At the same time, downstream demand for coatings, papermaking and other products has increased substantially, making the price of titanium dioxide in the doldrums suddenly rise sharply. Business statistics show that the price of titanium dioxide in early January this year was 16,500 yuan / ton, and as of this weekend (August 26th), the price of titanium dioxide was 21,300 yuan / ton, only half a year time up to 29.09%, compared to In the same period last year, it rose sharply by 41.90%.
Zheshang Securities believes that the current increase in titanium dioxide is due to the economic recovery in developed countries led to a return to normal levels of demand, foreign titanium dioxide production capacity generally takes 3 to 5 years time, it is difficult to meet demand in the short term. At the same time, domestic environmental protection and financial pressures have also limited the expansion rate of the production of titanium dioxide by the sulfuric acid process, while the chlorination process has been subject to slower technological capacity growth. Therefore, insufficient supply of titanium ore has aggravated the rise of titanium dioxide.
At the same time, along with the skyrocketing prices of titanium dioxide, the shares of the related listed companies, such as Anna, and ST Ti, have also skyrocketed. The newly-announced Titanium Dioxide Ferro Molitor, which has just been listed, was also stunned. On the first day of listing, it stood on the ranks of one hundred shares.
However, the increase in the price of titanium dioxide "fat" the titanium dioxide production enterprises, but let the titanium dioxide downstream companies difficult days. According to the data, titanium dioxide is considered to be the best white pigment in the world. It is widely used in coatings, plastics, papermaking, printing inks, chemical fiber, rubber, chemicals, cosmetics and other industries.
Among them, the coating is the largest application industry of titanium dioxide, titanium dioxide content in various coatings in the 10% to 35%. At the same time, the paper industry is also a large field of application of titanium dioxide, titanium dioxide is generally not used in consideration of production cost factors for low-grade paper, and titanium dioxide must be added to decorative paper, banknotes, etc., of which the amount of titanium dioxide in decorative paper is 20 %~40%.
According to the business agency, titanium dioxide analyst Yang Xun introduced, titanium dioxide prices continue to rise, it is difficult to see the decline in the short term market, titanium dioxide is expected this year prices will remain high. However, the downstream enterprises of titanium dioxide are difficult to digest in the face of rising costs, and demand has begun to shrink. More than 60% of titanium dioxide will be used for production of paints. In summer, it is generally the off-season of the decoration industry. Paint sales are not very prosperous, and this year, titanium dioxide prices are too high, and paint manufacturers do not intend to purchase. The same is true for the paper industry. Demand for decorative paper with the largest amount of titanium dioxide has also tended to shrink. As a result, the increase in the selling price of the product is relatively small, and the increase in raw materials has greatly squeezed the company's profits.
Downstream business performance fell
The listed companies in papermaking include Qifeng, Dilong New Materials and Hexing Packaging.
Of the companies mentioned above, almost all companies have experienced a drop in net profit this year. Jin Litai, Yusanxia A, music shares, Northwest Chemical's net profit this year fell by 35.57%, 21.22%, 40.79% and 29.41%. The net profit of Qifeng and Dilong New Materials dropped by 62.10% and 11.62% respectively in the first half of this year. Only Hexing Packaging's net profit rose in the first half of the year, but the increase was only 4.58%.
According to the Qifeng Share Prospectus, the main raw materials of the company’s products are wood pulp and titanium dioxide. In 2007, 2008, 2009 and January-June 2010, the company’s titanium dioxide consumption was 21,800 tons, 23,800 tons, and 3.00 respectively. 10,000 tons and 19,500 tons; titanium dioxide costs accounted for 32.51%, 33.96%, 36.02%, and 37.51% of the company's product costs, respectively. According to calculations, the price of titanium dioxide fluctuates by 1%, and the company's comprehensive gross profit margin fluctuates by 0.27%. Changes in the supply of raw materials and prices will directly affect the normal production and manufacturing costs of the company, which will affect the company's operating performance.
This year's interim report shows that the phenomenon of raw materials affecting the performance of Qifeng shares is very obvious. In the first half of the year, it achieved an operating income of 746 million yuan, and the consolidated gross profit rate was only 13.03%, a decrease of 11.88% over the same period of last year.
Jin Litai, which was just listed, also said that the company's main raw materials include titanium dioxide. As can be seen from the prospectus, the amount of titanium dioxide purchased by the company during the period from 2008 to 2010 was RMB 4,745,500, RMB 5,299,000 and RMB 6,518,600 respectively. In fact, in the listing announcement of Gulitai on May 30th, the information on the decline in performance in the first quarter was released, and the performance in the second quarter continued to decline. The company stated that the unit price of main raw material purchases has been operating at a high level, leading to major product costs. Big increase.