According to the 2023 annual report released by Huiyun Titanium Industry a few days ago, in 2023, in the face of the complex and changeable market, the company will actively take measures to deal with it, and carry out multi-dimensional synchronization from three aspects: expanding sales, reducing costs and increasing efficiency, and raising and investing projects, and has completed the performance growth well. In 2023, the sales volume of titanium dioxide will exceed 100,000 tons, reaching 107,000 tons, a year-on-year increase of 28.16%, the operating income will be 1.652 billion yuan, a year-on-year increase of 9.22%, and the net profit attributable to the owners of the parent company will be 41.038 million yuan, an increase of 189.59% over the previous year.
The annual report of Huiyun titanium industry pointed out that the company is a modern fine chemical high-tech enterprise with independent research and development and innovation capabilities, mainly engaged in the research and development, production and sales of titanium dioxide products, the main products are rutile titanium dioxide, anatase titanium dioxide series products, ferrous sulfate and other related by-products. The company and Yehua Chemical are equipped with sulfuric acid production lines, and their main products are sulfuric acid, steam and iron ore concentrate. Titanium dioxide is currently the world's best performing white pigment, accounting for about 80% of all white pigment use, with high refractive index, ideal particle size distribution, good hiding power and tinting strength, widely used in plastics, coatings, rubber, chemical fiber, ceramics, food, medicine, cosmetics, new building materials, electronic industry, microelectromechanical, automobile, new energy, photovoltaic and environmental protection industry, involving many fields of people's daily life, and the development of the entire national economy has a close connection, is the third largest inorganic chemicals. Because titanium dioxide has many uses that are closely related to the national economy, the amount of titanium dioxide consumption can be used as one of the important indicators to measure a country's economic development and people's living standards, and is known as the "barometer of economic development". In addition, the company is equipped with sulfuric acid production line and pyrite acid production line to provide sulfuric acid, steam and other raw materials for the company's titanium dioxide production, and the excess sulfuric acid is sold. Sulfuric acid is an important industrial raw material, known as the "mother of industry", can be used to manufacture fertilizers, drugs, explosives, pigments, detergents, batteries, etc., and is also widely used in purification of petroleum, metal smelting and dyes and other industries, often used as chemical reagents, in organic synthesis can be used as dehydrating agents and sulfonating agents.
According to Huiyun Titanium Industry, in 2023, the company's rutile titanium dioxide production line will have an annual production capacity of 80,000 tons, and the anatase titanium dioxide production line (which can produce anatase titanium dioxide or rutile titanium dioxide primary products) will have an annual production capacity of 30,000 tons. As of the end of the reporting period, the second phase of the company's 80,000 tons/year plastic-grade rutile titanium dioxide post-treatment reconstruction and expansion project with a production capacity of 50,000 tons has been commissioned, and will be officially put into operation in 2024.
The prospect of the future development of Huiyun titanium industry
For the key work in 2024, Huiyun Titanium Industry said: In 2024, the company's general guiding ideology is to "promote stability, improve quality and efficiency, and promote the company's high-quality development". "Enter" means that everyone must have an enterprising spirit, the project construction speed must be fast, the quality must be good, and the sales must break out of a new field. "Stability" means that safety and environmental protection work should be stable, production should be stable, and operation should be stable. "Quality improvement" is mainly to improve product quality, management, and research and development. "Efficiency increase" is mainly to increase the effectiveness of measures to increase or decrease costs, and to increase the efficiency of operations. The company continues to strengthen production management and quality management to improve production efficiency and quality level. It is necessary to seek benefits from intensive collectivization, from innovation and high-quality products, and from refined management. 1. To increase market development and break through sales: the competition in the titanium dioxide market will become more and more fierce, and with the company's technological transformation and expansion, it is necessary to actively explore new regions and new customers. The company implements product differentiation strategies such as "boutique strategy" and "personalized customized production", actively analyzes, researches and develops applications in different fields of titanium dioxide, and strives to develop a highly matched customer base, so as to continuously improve the company's competitiveness. 2. It is necessary to fully complete the expansion and technical transformation project: the 50kt/year to 80kt/year sulfuric acid rutile titanium dioxide initial technical transformation project and related supporting projects are planned to be completed and put into operation before the end of this year. After completion, the company's production capacity shortcomings will be filled, and the company's production capacity will also rank among the top in China on the basis of continuous domestic leading product quality. 3. We must pay close attention to safety and environmental protection, and strengthen the red line of the bottom line. 4. It is necessary to increase investment in scientific research. 5. To carry out foreign investment prudently: the company will continue to seek high-quality projects and opportunities suitable for the company while expanding the scale of production through technological transformation projects, promote and realize the sustainable and healthy development of the company and enhance the investment value of shareholders by reducing costs and improving efficiency. 6. It is necessary to do a good job in the construction of the "three major teams".
In its 2023 annual report, Huiyun Titanium said that it has achieved growth in performance by expanding sales and other means. It can be seen from Huiyun Titanium's 2023 annual report that rutile titanium dioxide accounts for 84.93% of Huiyun Titanium's revenue in 2023. Looking back at the price trend of rutile type in 2023, it can be seen that the annual daily average price of SMM rutile titanium dioxide in 2023 is 15954.75 yuan/ton, and the annual daily average price in 2022 is 18226.65 yuan/ton, and the average price in 2023 is 2271.9 yuan/ton compared with the average price in 2022, a year-on-year decrease of 12.46%. SMM rutile titanium dioxide was 15,850 yuan/ton on December 30, 2023, and the average price on December 30, 2022 was 15,000, an increase of 850 yuan/ton in 2023, and an increase of 5.67% in 2023.
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According to the SMM quotation, on April 26, the average price of SMM rutile titanium dioxide was reported at 16,850 yuan/ton, and the price was the same as the previous trading day.
According to customs data, China's titanium dioxide exports reached 196,100 tons in March 2024, an increase of 46.72% month-on-month and 29.61% year-on-year. Entering 2024, the market demand is better, considering the Spring Festival factor, the export of titanium dioxide in the first three months of this year still showed a year-on-year increase, the low-price supply is quite popular in the market, the inventory of titanium dioxide enterprises is low, the market supply is tight, and some enterprises have full orders and production scheduled to April.
According to SMM, at present, supported by the export market, most domestic enterprises have no inventory. However, as the market enters the off-season, downstream enterprises are still cautious in procurement. The market price of titanium dioxide is negotiable, although the cost of raw materials has fallen, but it is still at a high level. In terms of raw materials, the supply and demand of the sulfuric acid market have decreased, the market transaction atmosphere has weakened, and the price of sulfuric acid is expected to be adjusted in a narrow range in the later period. The prices of raw material perovskite and sulfuric acid are running at a high level, the production pressure of titanium dioxide remains high, and the mainstream price of titanium dioxide is temporarily stable, but with the delay in domestic demand and foreign trade, the market wait-and-see sentiment is getting stronger, and it is expected that titanium dioxide will run weakly in the later period.