Inventory of Hot Events in the Titanium Industry in the First Half of 2023

Author：Time：2023-06-25Return to List

1.Successful Commissioning of the First Electric Furnace for the Scrap Resource Utilization Project of Pingshan Tianyuan

On November 5, 2022, the first electric furnace for the scrap resource utilization project of Pingshan Tianyuan began its drying process. On January 9, 2023, at 8:30 am, the first electric furnace successfully produced qualified high-titanium slag products, marking the successful one-time commissioning of the first electric furnace for the company's scrap resource utilization project and its official entry into the trial production stage.

Covering an area of 140 acres, the project is divided into two phases to build an annual production capacity of 75,000 tons of high-titanium slag. It is an important part of Tianyuan Group's "one body, two wings" titanium industry development strategy. Upon completion and operation, it will provide important raw material support for Haifeng and Tai's chloride process titanium dioxide production base, a key measure to fill the gap in titanium raw materials and a strong guarantee for building a complete upstream and downstream titanium industry chain. It is the "ballast" for the company to maintain its competitiveness and profitability in the titanium industry for a long time.

2.The New Material Titanium Series Product Project of Chengxin Group Settles in Guang'an, Sichuan with a Total Investment of 12 Billion Yuan

On February 16th, the New Material Titanium Series Product Project of Hebei Chengxin Group Co., Ltd. was signed and settled in Guang'an, Sichuan in Chengdu. This is the third industrial project with a single investment exceeding 10 billion yuan introduced by Guang'an in the past year. The series of products of this project will be widely used in aerospace, biomedical, and marine engineering fields.

The newly signed New Material Titanium Series Product Project has a total investment of approximately 12 billion yuan and covers an area of approximately 1,260 acres. The project can achieve the comprehensive utilization of by-products and intermediate products of the existing industry chain. The series of products will be widely used in aerospace, biomedical, and marine engineering fields. When the project is fully completed and reaches production capacity, it will achieve an annual output value of approximately 20 billion yuan and an annual tax payment of approximately 2.5 billion yuan.

3.Longbai Group: The Company's 1 Million Tons per Year Titanium and Zirconium Ore Processing Project in Rizhao, Shandong is Expected to Be Completed and Put into Production in the First Half of This Year, with a Processing Capacity of 500,000 Tons per Year upon Completion

On February 20th, Longbai Group's vanadium-titanium magnetite resources in Panzhihua as of the end of 2021 totaled 13,310.72 million tons. In 2022, after the Miaozigou Iron Mine and Xujiagou Iron Mine were included in the company's consolidated financial statements, the company's controlled vanadium-titanium magnetite resources increased by more than double, or an increase of 19,744.56 million tons. During the "14th Five-Year Plan" period, the company will strengthen the construction of its own "grain silo", promote the integration of the two mines in the Hongge mining area, the development of Xujiagou and other new titanium mine projects, and strive to achieve an annual production of 7.6 million tons of iron concentrate and 2.48 million tons of titanium concentrate by the end of the "14th Five-Year Plan" period. The company's overall titanium ore self-sufficiency rate will reach approximately 70%. At the same time, the company is promoting the transformation and upgrading of Ruierxin's production line to increase titanium concentrate production capacity, aiming to achieve a supply capacity of 400,000 tons per year of titanium concentrate by 2025. The company's 1 million tons per year titanium and zirconium ore processing project in Rizhao, Shandong is expected to be completed and put into production in the first half of this year. Upon completion, the project will have a processing capacity of 500,000 tons per year. In summary, the company takes various measures to fully guarantee raw material supply. Thank you!

4.Longbai Group: Adding 30,000 Tons per Year of Sponge Titanium Production Capacity This Year, with a Rapidly Increasing Demand for High-End Sponge Titanium in the Future

On February 22nd, the company had already possessed a production capacity of 50,000 tons of sponge titanium per year by the end of 2022, with a monthly output of over 4,000 tons, ranking first in the industry. By the end of 2023, the company's 15,000-ton annual rotor-grade sponge titanium technology upgrading and reforming project (Phase II) in Jinchang, Gansu, and the 15,000-ton annual rotorgrade sponge titanium intelligent manufacturing technical renovation project (Phase II) in Lufeng, Yunnan, will be completed and put into production. By then, the company will possess a sponge titanium production capacity of 80,000 tons per year. In the future, the company will plan and build sponge titanium projects in bases such as Panzhihua to continuously consolidate its leading position. Regarding the average selling price of the company's sponge titanium, the product grade of the current 50,000 tons of sponge titanium, and the price differences between different products, Longbai Group stated that the average selling price (including tax) of the company's sponge titanium products is around 70,000 yuan per ton. The company has a relatively high proportion of products above grade 1, and the price difference between each grade is 2,000-3,000 yuan per ton. With the acceleration of the domestication process of military and civil aircraft, as well as the growth of demand in the consumer sector, the demand for high-quality sponge titanium will increase rapidly. The company will continue to improve its technology, control costs, and increase the proportion of products above grade 1.

5.feasibility study report on post-treatment of titanium dioxide in Cihu Hi-Tech Zone, Ma'anshan City, Anhui Province

The structural contradiction of titanium dioxide products in China is prominent. Titanium dioxide products are mainly non-pigment grades such as enamel and welding rods, and high-end specialized anatase and rutile titanium dioxide products require a large amount of imports. With the expansion of the domestic titanium dioxide consumer market, the widespread application of internationally advanced equipment, technology, and automatic control technology in China, as well as the continuous improvement of domestic titanium dioxide production technology, the proportion of rutile-type products representing the comprehensive ability of production enterprises has been increasing year by year. The varieties have also developed from a few general-purpose varieties to nearly a hundred functional specialized varieties. The product quality of some large enterprises is close to the first-class level of similar international products and can partially replace imported products for use in medium and high-end fields.

The total investment for the 200,000-ton post-treatment project of titanium dioxide by Zhonghe Titanium White Company is 639.5201 million yuan, with an intended use of 230 million yuan from the proceeds of this issuance for investment, and the remaining funds to be provided by the company's self-financing. As the company's 100,000-ton annual rutile titanium dioxide resource utilization project was put into production in 2019, and the future production and capacity release of the 200,000-ton annual titanium dioxide post-treatment project, the company's business scale will further expand, thus bringing a large demand for working capital.

6.Longbai Group: Monthly Production of 300,000-ton Chlorinated Titanium Slag Innovation Engineering Construction Project Reaches Around 10,000 Tons

On February 28th, Longbai Group stated on an investor interaction platform that the company's 500,000-ton Panxi Titanium Concentrate Upgrading and Converting to 300,000-ton Chlorinated Titanium Slag Innovation Engineering Construction Project has been operating stably since its commissioning, with production increasing month by month. The current monthly production has reached around 10,000 tons and has already been used in the production of chlorinated titanium dioxide.

7.Base Titanium Begins Mining at New Kwale Location

BaseTitanium has begun mining ore at its new facility located in Kwale, Australia, which is expected to extend the lifespan of its mine until the end of next year. The company's Australian parent company, BaseResources, stated in a recent trading report that mining has begun as planned at the end of February at the new mining area called Bumamani.

The new mining area covers the Kwale North Sand Dune, and the company expects to obtain 42,000 tons of rutile, 171,000 tons of ilmenite, and 20,000 tons of zircon from it. Additionally, BaseTitanium is also conducting early exploration in a new mining area east of the Kwale operation area. If this mining area is productive, it may extend the operational period beyond next year.

8.Meeting on the Advancement of Anning Titanium's 60,000-ton Energy-Grade Titanium (Alloy) Material Full Industry Chain Project

On March 3rd, the Vanadium and Titanium High-Tech Zone of Panzhihua City, Sichuan Province organized a meeting on the advancement of Anning Titanium's 60,000-ton energy-grade titanium (alloy) material full industry chain project. The meeting was presided over by Shen Hongjian, Deputy Secretary of the Working Committee and Executive Deputy Director of the Management Committee, with relevant departments of the project team participating.

The meeting listened to reports on the work progress of various parties, including road construction using discarded soil from Like 19th Metallurgical Corporation, construction and production water and electricity, and 5G network construction. The meeting discussed and clarified solutions, responsible departments, and time nodes for the difficulties and problems encountered during the project advancement.

The meeting emphasized that first, as the project has been listed as a key project at the city and district levels, all departments must attach great importance to it, carefully organize it, strengthen coordination and cooperation, and make every effort to advance the project. Second, in accordance with the work tasks and time nodes clearly defined at this meeting, the project schedule should be reversed, and all work should be carefully planned, including scheme approval, handling of procedures, and funding guarantees, to ensure orderly project advancement. Third, the project owner and involved departments should actively sort out and collect issues and opinions, and promptly submit them to the project team for research and resolution.

9.Guizhou Zunyi Titanium Group Releases the First Batch of Products from its New High-End Sponge Titanium Technical Renovation Project

On March 21st, Zunyi Titanium Group held a ceremony to celebrate the release of the first batch of products from its new high-end sponge titanium technical renovation project at its corporate headquarters. Wu Wei, Deputy Secretary of the Party Committee and General Manager of the group company, attended the ceremony and delivered a speech.

The new high-end sponge titanium technical renovation project is one of Zunyi Titanium Group's strategic initiatives to focus on the "Four New" and主攻 "Four Modernizations" to promote high-quality development of the enterprise. After the successful commissioning of the project, it will further enhance the company's competitiveness in the high-end market for sponge titanium and continue to contribute Zunyi's strength to the high-quality development of the industrial sector in Guizhou Province.

10. Baoti Titanium: Once the Company's Fund-Raising Project Reaches Full Production Capacity, It is Expected to Annually Add 10,000 Tons of Titanium and Titanium Alloy Ingot Capacity

Baoti Titanium (600456.SH) stated on the investor interaction platform on March 29th that the company's fund-raising project construction is being actively promoted. Please refer to the company's semi-annual and annual disclosures of the "Special Report on the Storage and Actual Usage of Raised Funds" for specific details. Based on the feasibility analysis report of the fund-raising project, it is expected that once the project is completed and reaches full production capacity, it will annually add 10,000 tons of titanium and titanium alloy ingot capacity, 290 tons of tubing capacity, 100 tons of profile capacity, 1,500 tons of plate capacity, 5,000 tons of strip capacity, and 500 tons of foil capacity.

XI. Titanium Dioxide Company Venator Files for Bankruptcy Protection in the United States for Capital Restructuring

British chemical producer Venator Materials (VNTR.N) stated in a court document that the company has filed for bankruptcy protection in the United States. According to documents submitted to the U.S. Bankruptcy Court for the Southern District of Texas, Venator estimates its assets and liabilities to be between US$1billionandUS$10 billion.

The manufacturer reported a loss of $228 million in the last three months of 2022 due to decreased demand and rising costs. The company plans to apply for a capital restructuring through Chapter 11 of the US Bankruptcy Code, with funds provided by Debtor Owned Assets (DIP) financing instruments, including a $275 million commitment from creditors to provide new financing.

Venator has been striving to maintain competitiveness for a long time, reporting that due to declining demand and currency headwinds, titanium dioxide revenue in the fourth quarter of 2022 decreased by 41% year-on-year, and it is expected that the situation will further deteriorate in the first quarter of 2023. Venator has been striving to maintain competitiveness for a long time, reporting that due to declining demand and currency headwinds, titanium dioxide revenue in the fourth quarter of 2022 decreased by 41% year-on-year, and it is expected that the situation will further deteriorate in the first quarter of 2023.

12.The signing ceremony for equity cooperation between Yunnan Guotai, a subsidiary of Longbai Group, was successfully held

On May 24th, the signing ceremony for the equity cooperation of Yunnan Guotai, a subsidiary of Longbai Group, was held in Kunming. The total contract amount is 2.272 billion yuan, including 900 million yuan from Shenzhen Innovation Investment Group and 400 million yuan from China National Building Materials New Materials Fund. All funds have been fully received so far.

Yunnan Guotai has initially established a full process industrial chain of "titanium ore → titanium concentrate → high titanium slag → titanium tetrachloride → electrolytic magnesium → sponge titanium". The current sponge titanium production capacity is 50000 tons/year, ranking among the top in the world. At the same time, it has internationally advanced "magnesium reduction distillation" process and "inverted U-shaped" joint production process.

13.ST Dinglong: Currently, the total amount of ilmenite minerals in the company's five titanium ore mines exceeds 12 million tons

ST Dinglong (002502. SZ) stated on the investor interaction platform on May 30th that the total amount of ilmenite minerals in its five titanium ore mines exceeds 12 million tons, and the two titanium ore production lines that have been built and put into operation have a titanium concentrate production capacity of 160000 tons/year. On the one hand, the company will continue to explore and integrate titanium iron ore resources with development value, continuously improve the exploration level of various mines, and strive to continuously increase the company's titanium iron ore resource reserves. On the other hand, it will also continue to promote the construction of other titanium ore production lines and the processing of related qualification and license documents. The continuous construction and production operation of titanium ore production lines will bring economic benefits to the continuous development, continuously enhance the company's core competitiveness and sustainable operation ability.

14.Vanadium and Titanium Corporation: The thermal load test of the 253000 ton/year grinding line was successful. On May 30th, the thermal load test of the 253000 ton/year grinding line project of Vanadium and

Titanium Corporation's titanium smelting production line achieved a one-time success, two days ahead of schedule, laying a solid foundation for the project to be put into operation as scheduled.

The 253000 ton/year grinding line project is a key focus of the titanium smelting production line this year. After the project is put into operation, it can effectively meet the particle requirements of the 60000 ton/year molten salt chlorination titanium dioxide project of Panzhihua Iron and Steel Group and downstream customers for titanium slag raw materials, helping the company's titanium industry development.

Since the official construction of the project in February this year, the titanium smelting production line has dispatched elite troops and strong generals, established a project department, formulated a network progress map, clarified construction progress nodes and their responsible persons, implemented responsibilities, and promoted project construction with a "strict, meticulous, and consistent" work style.