At the beginning of this year, the exw price of domestically produced titanium concentrate with 46% content was ￥800-1000 /ton, while it increased to  ￥2000 /ton from end of NOV. Plus freight and taxes, the cost is more than ￥2,600 /ton when arrive the titanium dioxide manufacturer, which puts titanium dioxide enterprises under huge cost pressure.

 

In this regard, our company is exploring ways to reduce production costs. In the middle of this year, Our company used its capital advantage to lock in the supply of titanium concentrate in advance. Therefore, the price increase of titanium concentrate in the second half of the year has little impact on us, which is equivalent to locking in profits in advance . Due to this advantage, together with our stable quality, our sales volume gained a great increase and get approval from market.

 

We are very confident of the 2021 sales volume, but still need keep exploring the ways to decrease the cost because the low-priced titanium concentrate contract will expire soon. After that, We will also face the continued price increase of titanium concentrate, which is a potential pressure us.

 

According to the precast, the price of the titanium dioxide will increase at least ￥500/ton in the coming month.