In late July 2020, Lomon Billions Group
revealed its semi-annual report for the first half of 2020. According to the
report, the company’s revenue in the first half of 2020 was approximately RMB
6.3 billion, which was an increase of 17.98% compared to the same period last
year. In particular, Lomon Billions Group earned USD 691.77 million (RMB 4.84
billion) from its titanium white business, down by 5.05% YoY.
In terms of production and marketing, Lomon
Billions Group produced 310 thousand tons of titanium white by a sulfuric acid process,
95 thousand tons of titanium white by a chloride process, and 1.9 million tons
of iron ore concentrates, which were respective increases of 13.51%, 183.17%,
and 7.56% YoY in H1 2020. The production of titanium concentrates was 437
thousand tons, down by 0.71% YoY in H1 2020. The total sales volume of titanium
white was 355 thousand tons, which was a 15.62% YoY growth in H1 2020. Among
the 355 thousand tons of titanium white, the exported titanium white increased
by 23.13% YoY in H1 2020, with 197 thousand tons exported.
Titanium white prices expected to
increase during H2 2020
The price of titanium white will continue
to rise during the second half of 2020, with an estimated growth of RMB
500/ton. On September 7, Lomon Billions Group announced an increase in its
selling price of titanium white. According to Lomon Billions Group, prices of
all types of titanium white will increase by RMB 500/ton for customers in China
and increase by USD 100/ton for international customers. Two days after the
announcement came, ten more enterprises followed suit, including Anhui Annada
Titanium Industry Co., Ltd. and CNNC HUA YUAN Titanium Dioxide Co., Ltd.
As of September 8, SCI99.COM evaluated the market
price of rutile titanium dioxide as RMB 13,083/ton. According to Shanghai
Securities News, the market price of rutile titanium dioxide was RMB 12
thousand/ton in late June, and after just two weeks, the price grew by between RMB
500/ton and RMB 800/ton.
According to a representative of Lomon
Billions Group, the reason for the increase in the price of titanium white
primarily lies in an increase in the demand of dealers and subcontractors. In
the second half of 2020, many enterprises involved in industries such as real
estate, coating, plastic, and paper have an enormous demand for titanium white.
Lomon Billions Group expected to
profit from price increases
The representative stated that Lomon
Billions Group can produce about one million tons of titanium white each year,
ranking the first in China, and the third in the world. The company once
revealed its semi-annual report, showing that the inventory of raw materials
and products in late 2019 increased by 36.12%, but recently the volume is
decreasing due to the enormous demand for titanium white.
Some analysts believe that adjusting the
price of titanium white will have a positive effect on the companies. From
March to June 2020, the price of titanium white was low, almost reaching the breakeven
point of enterprises. With the traditional peak season of consumption
(September and October) coming, the price of titanium white is estimated to
rise again in the market, and the growth may continue until late October.
For more information on China’s TiO2
market, please check our Titanium
Dioxide China Monthly Report.