China Drying Network China Securities Journal reporter recently learned that the titanium dioxide industry has caused the pollution of the relevant departments of the country attaches great importance to the Ministry of Environmental Protection is developing titanium dioxide industry pollutants prevention and control policies, the National Development and Reform Commission is developing titanium dioxide industry energy standards.
People in the industry believe that with the tightening of environmental protection policies, the environmental protection costs of enterprises will be greatly increased, and the titanium dioxide industry must accelerate the pace of transformation and upgrading. It is expected that before the official introduction of the policy, relevant departments will intensify efforts to verify the environmental protection of enterprises, thereby accelerating the elimination of backward production capacity and promoting the recovery of the industry.
Leading company was exposed to illegal discharge
Titanium dioxide, chemically named titanium dioxide, is considered to be the best white pigment in the world. Recently, the illegal discharge of Panzhihua Iron and Steel Group Chongqing Titanium Industry Co., Ltd., the leading company in the titanium dioxide industry, was exposed, giving the public a sense of the pollution of the titanium dioxide industry.
On August 11, 2013, the “Nianshui Action†organized by the ASIMS SEE Public Welfare Organization was launched to carry out the “Reading Water Action, Water Conservation on the Yangtze River†campaign. The organizer of the event announced on the same day via Sina Weibo that the on-site monitoring of surface water rapid test packages developed by an environmental NGO has shown that Panzhihua Iron and Steel Group Chongqing Titanium Industry Co., Ltd. discharged sewage through the Yangtze River sewage outfall and exceeded its standard.
On August 12, Panzhihua Vanadium and Titanium announced the temporary suspension of trading. On August 13, the company issued an announcement that the source of the pollution was the old slag yard that was closed to the Chongqing titanium industry. At present, the specific cause of pollution is still under investigation. Panzhihua Steel Vanadium and Titanium said that it will actively cooperate with the investigation of environmental protection agencies and social institutions, and after identifying the causes, it will actively take related measures to timely handle the leakage problems of the old slag plant.
Chongqing Environmental Protection Bureau has issued a document and ordered Panzhihua Iron and Steel Group Chongqing Titanium Co., Ltd. to rectify immediately. A preliminary investigation found that the company's improper discharge of iron-containing wastewater was true. On August 11, 2013, the Chongqing Municipal Environmental Protection Bureau had issued an administrative penalty notice, a notice of violation of the law, and a hearing notice to Chongqing Titanium Company. During the company's rectification, the Chongqing Municipal Environmental Protection Bureau will assign law enforcement personnel to conduct on-site inspections on a daily basis. If it is found that the company has not rectified in a timely manner, it will impose a daily penalty on its illegal discharge.
In fact, the illegal sewage behavior of Panzhihua Iron and Steel Group Chongqing Titanium Company is not new. From January to July 2013, the Chongqing Environmental Protection Bureau issued four administrative penalty decisions to Chongqing Titanium Industry Company. In August 2013, the Chongqing Municipal Environmental Protection Bureau had initiated investigations into two environmental violations such as unorganized emissions of dust and unfairly discharged pollutants, and is currently implementing an administrative penalty procedure.
Titanium dioxide industry as the leading titanium dioxide industry is still the case, the overall situation of the industry can imagine. According to industry sources, the titanium dioxide industry is a highly polluting industry, with large waste discharges and high processing costs. There are certain problems in the environmental protection of SMEs and some leading companies in the industry.
Domestic market is expected to accelerate recovery
The exposure of pollution problems seems to be a blow to the titanium dioxide industry, but in the eyes of the industry, the overcapacity in the titanium dioxide industry is more serious. The pollution incident has exposed the tightening of environmental protection policies, which may instead bring investment opportunities to the industry.
Informed sources told the China Securities Journal that the Ministry of Environmental Protection is formulating a pollution prevention policy for the titanium dioxide industry that is expected to drastically increase corporate environmental protection costs. Enterprises that do not meet the policy requirements will be subject to greater restrictions on exports and credit.
In fact, the construction of "beautiful China" has become a national will. From top to bottom, more attention has been paid to pollution issues. The environmental protection inspection of the titanium dioxide industry is gradually becoming more stringent. A titanium dioxide company official in Jiangsu said that this year it has already received several verifications from environmental protection agencies.
From the current fundamentals, the performance of titanium dioxide industry is not beautiful. In the first quarter, Annada realized operating income of 121.686 million yuan, a year-on-year decrease of 32.64%; and a net profit of -751 million yuan, a year-on-year decrease of 163.04%; the company expects to record a loss of 17.5 million yuan to 2.2 million yuan in the first half of the year. Yanli Lian expects its first-half performance to fall by 95%-100%, and its profit will be 0-768.9 million yuan; after that, the company had expected profit of 7.689 million yuan to 53.832 million yuan.
The decrease in the price of titanium dioxide is the main reason that drags down the performance of related companies. According to statistics from business clubs, the price of titanium dioxide was 16,826 yuan/ton at the beginning of the year, while the latest price has dropped to 14,496 yuan/ton. On the whole, January and mid-January are the periods of inertial price reduction. The period from the end of January to the end of March is the stalemate period, and the period from late March to June is the period of price reduction. The drop in raw material titanium concentrate has led to a drop in the price of titanium dioxide on the one hand, and on the other hand, it has caused assets to be depleted by companies that stockpiled raw materials.
Li Lilian’s relevant person told the China Securities Journal that the titanium dioxide industry currently suffers large losses, and the company only realizes low profits. However, there is not much room for the current price to continue to fall.
According to market sources, the price of a leading company in southwestern China has been low for large customers. It has recently been raised at around RMB 200/ton, and individual brands have less inventory, and there is room for price increases.
Analysts believe that the titanium dioxide market has already begun to show signs of recovery, coupled with environmental protection policies, supply contraction is predictable, and leading companies that value environmental protection are expected to benefit fully. In addition to Ananda, Wu Lilian, Panzhihua Steel Vanadium and Titanium, listed companies include Jinpu Titanium Industry, China Nuclear Titanium Dioxide and other companies. Although it is unclear which companies may be able to “gunshot†in terms of environmental protection, they have seen performance over the years. , Li Lilian’s environmental protection investment is relatively large.
Foreign markets are cleared in advance
While the domestic market showed signs of recovery, foreign markets had already cleared in advance and entered a recovery channel. Recently, Japan's largest titanium dioxide producer, Ishihara Shizuhara, has been shut down at its titanium dioxide plant in Singapore and will be incorporated into the titanium dioxide plant in Yokkaichi, Japan. This capacity contraction will undoubtedly further promote the overseas market.
Since the first quarter of this year, the international market has shown signs of recovery. On February 18, Kronos announced that its titanium dioxide product price will be raised from March 1st, with a price increase of US$250/ton in the Asia Pacific region. Kronos's price adjustment may be the expected real estate recovery in Europe and the United States. Tronox raised the price of US$175/t from June 1. DuPont will raise the price by 200 US dollars/ton from July 1. The three companies together accounted for about 37% of global production capacity.
However, while the international giants are raising prices, domestic companies have maintained low prices or even reduced prices, which to a certain extent offset the impact of price increases in the international market on domestic market confidence. Coupled with the decline in the price of titanium concentrates, traders are also more cautious attitude, did not join the ranks of speculation.
Analysts believe that the increase in the price of overseas giants in turn has had limited effect on the domestic market, mainly due to the slowdown in domestic economic growth. However, July's macro data indicates that the most difficult time for the economy may have passed. Expectations before the market are too pessimistic. Measures such as shantytown reconstruction will also stimulate the demand for titanium dioxide. Once the domestic market suffers from supply contraction due to environmental issues, the industry will Quickly follow the international market and enter the recovery channel.
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