Lomon Billions Group Co. adjusted its TiO2 prices
upwards with immediate effect on April 25 due to short supply
The company raised the domestic price of both sulphuric acid
route and chloride route TiO2 by Chinese renminbi 700/tonne and
moved exports prices up by $150/tonne.
On the same day the company said it expected its H1 net
profit to surge year-on-year.
The price increase announcement is the first so far in Q2
after the company raised prices four time in Q1 alone.
Lomon saw sales turnover rise 27% in Q1 to Rmb 2.37bn while
net profit rose to Rmb 585m up 3440.83% y-o-y.
While much of this dramatic increase in profit resulted from
the merger of Billions and Lomon last year the increase in
TiO2 prices during the quarter was also a
contributing factor, the company said.
Other TiO2 producer
Jilin GPRO Titanium Industry
Co. announced its Q1 sales turnover was
up 177.31% y-o-y to Rmb 465.2m while net profit rose
239.4% y-o-y to Rmb 53.27m. For H1, the company expects
net profit to increase by 150-180% y-o-y to Rmb
Annada Titanium Dioxide
Co.’s Q1 results showed that
turnover rose by 46.64% y-o-y in Q1 to Rmb 251.3m while
net profit surged 310.85% y-o-y to Rmb 31.96m. For H1,
Annada also expects net profit to increase
substantially (by 1669.48%-1915.24% y-o-y) due to the
much higher TiO2 prices and the
accordingly higher gross profit rate.
Higher soda ash prices boost Q1 profits
Jiangsu Jingshen Salt & Chemical Industry Co. saw Q1
sales turnover increase 14.35% year-on-year to Rmb 594.77m
The company attributed the increase to higher prices
achieved on its main products including soda ash. Soda ash
prices rose Rmb 506.73/tonne during the quarter, boosting sales
turnover by Rmb 56.22m.
Net profit surged 405% y-o-y to Rmb 28.44m, while gross
profit for soda ash increased Rmb 14.62m. Though the cost of
source materials like coal rose during the quarter, it
wasn’t enough to impact performance due to the
sales price increases, the company said.
Shandong Haihua Co., a leading soda ash producer in China,
also expects Q1 net profit to surge with the company
forecasting a profit of Rmb 276m, up substantially from the
same period last year. This comes as Shandong Haihua expects
sales turnover to increase by 83.54% y-o-y to Rmb 1.1bn on the
back of higher sales volumes and prices.
Tangshan Sanyou Chemical Industries Co., another leading
soda ash producer in China announced that Q1 sales turnover
increased by 15.06% y-o-y to Rmb 15.76bn, and net profit
increased by 84.89% y-o-y to Rmb 762.86m.
Tangshan’s soda ash output increased by 0.18%
y-o-y to 3.48m tonnes in Q1, with a fully utilised capacity of
3.4m tpa. Sales volumes for the quarter were reported at 3.46m
tonnes, according to the company.
Soda ash accounted for 26.69% of the company’s
total turnover, having reached a gross profit rate of 35.35%,
up 7.83% y-o-y.
Puyang Refractories reports steep loss in
Puyang Refractories Group Co., one of the leading
refractories manufacturers in China, posted a 17% drop in 2016
full year turnover to Rmb 2.34bn ($265.37m), while net profit
plummeted 378% year-on-year (y-o-y) to a loss of Rmb
Puyang has two refractory divisions, one supplying the
steels sector and the other selling to cement makers, as well
as a source materials business.
Puyang’s steel division (selling refractory
materials to steelmakers) saw its sales fall 9% y-o-y
to Rmb 2.07bn. The five largest customers are all steel
companies in China, but new orders came in also from large
steelmakers in Kazakhstan, Azerbaijan and Poland.
Turnover in the cement division was down 49% y-o-y to Rmb
272.62m. This was due to a number of factors affecting the
performance of the cement industry in 2016, namely the
consolidation push, closing of obsolete capacities and
limitation on new capacities installed.
The source material division performed better, with a 7%
increase in sales to Rmb 106.09m. In 2016 Puyang established a
purchasing centre of magnesia source materials by combining the
purchasing functions of all of its subsidiaries.
This helped to push down purchasing prices, leading to
stable production of sintered magnesia, higher-than-forecast
alumina production, and an increase in magnesia trade. Gross
profit rate in the division exceeded the forecast rate by
The company flagged several risks to business that affected
operations during the past year.
Risk related to accounts receivable has been rising, the
company said, due to the inconsistent performance of the
downstream steel and cement industries. Competition between
domestic players is also becoming more aggressive. Downstream
demand remains weak, because the refractory industry is still
small-sized and scattered – which in turns puts
pressure on purchase prices and payment delays.
Other risks the company sees at the moment include higher
costs related to China’s environmental policies
and fluctuations in exchange rates.
Although steel prices have recovered partially since Q2
2016, production increased only slightly, having minimal effect
on refractory demand.
Sales of functional refractories, shaped and unshaped
refractory products accounted for 30%, 37% and 27%
respectively, with a remaining 6% of other products.
Domestic sales accounted for 84% of business, with exports
accounting for the remaining 16%.
All conversions made in May 2017