Summary: Despite price volatility in China's domestic titanium dioxide industry, overall profitability has seen a marked improvement in the first half of 2024. This is evidenced by the significant performance gains recorded by leading enterprises like CNNC.
On 12 August, CNNC published its half-year financial report, which showed a substantial increase in revenue and profitability.
The company achieved revenue of 3.15 billion yuan in the first half of the year, representing a 42.29% year-on-year increase. The net profit attributable to the parent company also increased by 42.09% year-on-year, reaching 304 million yuan. This impressive growth was primarily driven by an increase in sales volume and an enhancement of selling prices for titanium dioxide.
The market for rutile titanium dioxide, CNNC's flagship product, is subject to a number of influencing factors, including environmental policies, global economic trends and supply and demand dynamics.
Despite the global economic slowdown and the sluggish end-demand recovery in the first half of 2024, the titanium dioxide industry demonstrated a stable and weak supply-demand trend, with prices showing signs of recovery. According to the latest figures, China's domestic titanium dioxide production reached approximately 2.4 million tons in the first half of the year, representing a 20% increase compared to the previous year.
In the export market, CNNC's dedication to maintaining product quality and supply stability has resulted in the establishment of long-term collaboration agreements with a number of significant overseas clients.
Despite the anti-dumping tax policies from the European Union, the company anticipates that its annual export volume will reach 40% of China's domestic production, which is expected to further alleviate industry supply-demand pressures.
The recent surge in raw material prices, including those of sulfuric acid, has led to increased production costs for some titanium dioxide manufacturers.
However, CNNC has successfully mitigated these cost increases by enhancing its self-sufficiency in titanium concentrate and sulfuric acid. Furthermore, the company has formed a long-term exclusive supply partnership with titanium concentrate producers in northwest China. It has also achieved local digestion and conversion of hazardous chemicals within the park for sulfuric acid procurement, which has led to a significant reduction in external procurement costs.
Given these strategic initiatives and market trends, CNNC is well-positioned to continue its growth trajectory and maintain its competitive edge in the global titanium dioxide market.
More information can be found at CCM Titaniumdioxide China Monthly Report.
About CCM:
CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.
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