Investment Rating - The report rates the titanium dioxide industry as "Overweight" [2] Core Viewpoints - The report emphasizes that while the titanium dioxide demand is under pressure, the long-term outlook remains positive due to the stable growth of leading companies [4][21] - It highlights that the titanium ore industry is characterized by a high concentration of downstream demand, with nearly 90% of titanium ore used in titanium dioxide production [9][7] - The report suggests that the pressure on titanium dioxide prices may be transmitted upstream to the ore producers as new capacities are released [4] Summary by Sections Demand Side: Titanium Dioxide Demand Under Pressure, Long-term Demand is Secure - The global demand for titanium dioxide saw a significant decline in 2022, dropping by approximately 1 million tons (around 12.5%) compared to 2021, but is expected to stabilize in 2023 at around 7.5 million tons [4][10] - The report notes that titanium dioxide is the best white inorganic pigment, with no commercially viable substitutes, and its demand is closely tied to GDP growth [10][9] - The report indicates that the long-term demand for titanium dioxide is expected to grow steadily, driven by increasing needs in the coatings, plastics, and paper industries [10][4] Titanium Ore: New Capacity Released in an Orderly Manner, Limited Pressure Before 2026 - The report forecasts that the new capacity for titanium ore will be released in an orderly manner, with no significant pressure expected before 2026 [4][27] - It highlights that the global reserves of titanium ore are abundant, but high-grade ores are scarce, with China holding 21 million tons, accounting for 28% of global reserves [30][31] - The report also discusses the concentration of titanium ore production in China, particularly in the Panzhihua region, which accounts for over 80% of domestic output [4][33] Focus on Leading Companies: Long-term Growth Certainty - The report emphasizes the importance of focusing on leading companies in the titanium ore sector, such as Longbai Group, which is expected to achieve an annual production capacity of 2.48 million tons of titanium concentrate by the end of 2025 [4][21] - It notes that Longbai Group has significant advantages in scale, industry chain support, and cost, making it a key player to watch in the industry [4][21] - The report suggests that the current pressure on the titanium dioxide segment may lead to a concentration of market share among leading companies like Longbai Group [4][21]
钛矿行业专题报告：景气无需过分担忧，长期把握龙头量增的确定性
Guotai Junan Securities·2024-10-27 12:15