On July 12, Pangang Vanadium & Titanium (000629.SZ) stated at the exchange meeting with investors that the company currently has a production capacity of 40,000 tons/year of vanadium products (calculated as V2O5) and 220,000 tons/year of titanium dioxide by sulfuric acid method, the production capacity of chlorination titanium dioxide is 15,000 tons/year. Most of the company’s products are used for export according to the market supply and demand relationship and market price formation mechanism, and are committed to establishing direct sales channels with downstream customers. In addition, in the future, in the vanadium business, the company will take into account the development of traditional fields and non-steel fields. The company’s 60,000-ton/year molten salt chlorination titanium dioxide project is currently under construction. It is expected to be completed and put into operation in the first half of 2024. The Dalian flow battery energy storage peak-shaving power station project will be officially put into commercial operation in August this year.
Vanadium and titanium are the company’s strategic key business development
According to the company, in the first half of 2022, the company expects to realize a net profit of 1.04 billion to 1.15 billion yuan attributable to shareholders of listed companies, an increase of 50.72% to 66.66% year-on-year.
Talking about the “main reasons for the company’s performance growth in the first half of the year” that investors are interested in, Pangang Vanadium & Titanium said that the company seized market opportunities, adjusted marketing strategies in real time according to market conditions, made every effort to link production and sales, and vanadium and titanium products prices have increased significantly year-on-year. Besides, the company maintains balanced and stable production, actively digests the profit reduction brought about by the increase in procurement costs of main raw materials, auxiliary materials, power and other materials, strictly implements cost reduction and efficiency enhancement measures, and does everything possible to improve profitability. Finally, Pangang Group Titanium Industry Co., Ltd., a wholly-owned subsidiary of the company, transferred 2 land use rights and ground attachments to a related party, Pangang Group Mining Co., Ltd., realizing a land disposal income of RMB 37.32 million.
Pangang Vanadium & Titanium mentioned at the exchange meeting that the company’s main business includes vanadium, titanium and electricity, of which vanadium and titanium are the company’s strategic key development business, and the main products include vanadium oxide, ferrovanadium, vanadium nitrogen alloy, vanadium aluminum alloy, titanium dioxide, titanium slag, etc. The company currently has a production capacity of 40,000 tons/year of vanadium products (calculated as V2O5), 220,000 tons/year of titanium dioxide by sulfuric acid method, and 15,000 tons/year of titanium dioxide by chloride method. At present, the company’s vanadium products are mainly sold to steel, titanium alloys, catalysts, glass and other fields; titanium dioxide is widely used in coatings, plastics, paper, ink and other fields. At present, the company’s titanium dioxide is mainly sold to coatings, masterbatch, ink and other fields . At present, the company’s titanium slag is mainly used to produce titanium dioxide and titanium sponge.
In the future, in terms of vanadium business, the company will take into account the development of traditional fields and non-steel fields
In terms of upstream raw material procurement channels for vanadium and titanium products, Pangang Vanadium & Titanium introduced that the company purchased crude vanadium slag and titanium concentrate from Pangang Group, the controlling shareholder, and the company purchased titanium concentrate from Pangang Group for market pricing, and purchases crude vanadium slag as the cost plus reasonable profit model. It is worth mentioning that the company’s vanadium product output in 2021 accounted for about 20% and 32% of the global market and China’s market share, respectively.
Regarding the sales strategy, Pangang Vanadium & Titanium said that the main source of the company’s performance is to obtain added value through the sale of production products. The performance driving factors are the expansion of production scale, the increase of sales price and the control of production cost, at the same time, through the integration of procurement and sales channels, a stable supply and sales customer relationship has been established. Most of the company’s products are used for export according to the market supply and demand relationship and market price formation mechanism, and are committed to establishing direct sales channels with downstream customers. In addition, in the future, in the vanadium business, the company will take into account the development of traditional fields and non-steel fields.
The 60,000-ton/year molten salt chlorination titanium dioxide project is expected to be completed and put into operation in the first half of 2024
Regarding the company’s projects under construction, Pangang Vanadium & Titanium stated that the company’s 60,000-ton/year molten salt chlorination titanium dioxide project has started construction and is expected to be completed and put into operation in the first half of 2024. In addition, according to public information, the Dalian flow battery energy storage peak-shaving power station project, which Dalian Rongke participated in the construction of, is the first national-level large-scale chemical energy storage demonstration project approved by the National Energy Administration. It will be put into commercial operation in August.
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