Chinese TiO2 Market Slumped Rapidly In Aug. 2015

Date: 2015-11-10

In this issue, apart from paying attention to the imports, exports, price, and upstream & downstream products of TiO2 as usual, CCM also analyzed the predicament that the Chinese titanium slag industry in and PPG’s performance in Q3 2015. Besides, CCM also made a special report on Jilin GPRO’s issuing private placement to march into financial market.

In Aug. 2015, Chinese TiO2 market slumped rapidly and demand for TiO2 from downstream industries was insufficient. As a result, both of the import volume and domestic market price of TiO2 recorded MoM drops. Besides, the international TiO2 market was also restricted by insufficient demand, leading to a MoM fall in Chinese export volume of TiO2. In the same month, import price of ilmenite continued to climb up and the import volume dropped significantly. Besides, domestic output of ilmenite remained its downward trend due to the sliding output of titanium concentrate from Sichuan Province.

As for the predicament that the Chinese titanium slag industry in, CCM believes that, the sluggish TiO2 market was only the last straw to the depressed titanium slag market and the real reasons for this tragedy are the three big internal contradictions: severe overcapacity, small-scale capacity with backward production techniques and product quality that doesn’t meet market demand.

Regarding company dynamics, CCM introduced PPG’s performance in Q3 2015, and predicted that PPG’s business strategy may be able to show a bright road for Chinese TiO2 companies that want to enlarge their investment into the export market. Learning from Jilin GPRO’s issuing private placement to march into financial market, CCM also believed that more and more TiO2
companies will enter the supply-chain finance market in succession. 

CCM also paid attention to many other hot topics such as: On 10 Oct.,2015, CNNC TD released an announcement, showing that it would deposit its idle raised funds of USD14.17 million (RMB90 million) into banks for three months; On 15 Oct.,2015, CNNC TD revised its performance forecast for the first three quarters of 2015, showing that it may suffer losses instead of making profits; On 19 Oct., 2015, news from Panzhihua Vanadium & Titanium Trading Center (PVTTC) disclosed that the transactions conducted via the center created a transaction value of about USD976.30 million (RMB6.20 billion) in the first three quarters of 2015; Anhui Annada suffers losses in Q1-Q3 2015; On 21 Oct.,2015, Pangang Vanadium Titanium announced to terminate the equity transaction of its subsidiary KML due to disagreement on assets valuation.

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