Giant profits are not optimistic
In the second quarter of 2015, the adjusted EBITDA of Huntsman's pigments and additives business segment decreased by 56% year-on-year, and that of the company's titanium dioxide business fell 71% year-on-year. The company's titanium technology business unit's profit fell by 55% year-on-year.

From the current situation, the performance of the three giants in the third quarter is still hard to be optimistic. Huntsman announced in its announcement in September that there has been an early warning: the price of titanium dioxide has fallen, especially in North America, which has led to a decline in company performance in the third quarter. At the same time, the company also made it clear to shareholders that it will spin off its pigments and additives business unit before the end of 2016. At the same time, Kemu Company significantly reduced its dividend for the fourth quarter to 3 cents/share, a sharp drop of nearly 95% from the dividend for the 55 cents/share in the third quarter.

Make great efforts to cut costs
Huntsman and Kemu have already implemented cost reduction plans. Huntsman announced at the end of 2014 plans to lay off 900 people in the titanium dioxide pigments and additives business unit, which is part of the company's restructuring plan and aims to save $175 million annually by the middle of 2016. The layoffs plan includes the layoffs of 360 people at the Duisburg facility in Germany, 160 layoffs at the Uddingen plant in Germany, and 160 layoffs at the French factory in Calais. The French factory in Calais is shutting down and it will cut its titanium dioxide production capacity by 100,000 tons/year.

Kemu announced plans for reorganization in August, saying that it will shut down a titanium dioxide production facility in Echmore, Delaware, at the end of September, and close a titanium dioxide production line in New Johnsonville, Tennessee. The company said that these restructuring plans will cut 150,000 tons/year of titanium dioxide production capacity and save about US$45 million annually.

Teno's six production lines at the Hamilton Titanium Dioxide Plant in Hamilton, Mississippi, have closed down one, and suspended one of four production lines at the Titanium Dioxide Powder Plant in Quinnana, Australia. The shutdown capacity accounts for the company's total production capacity. About 15%.

Inventory situation improves year by year
Since 2012, global titanium dioxide producers have been in a profitable plight. According to estimates from Alembic Global Advisors, a company based in New York City, global titanium dioxide market sales fell by 23% in 2012. Manufacturers’ inventory has soared to 100 days of supply, and prices have fallen sharply from the high point of nearly 10 years. In this case, producers have cut production and the average global operating rate has dropped to about 70%.

The company said that in the past few years, the global market for titanium dioxide has slowly shifted towards the balance between supply and demand. Taking the second quarter data as an example, in 2013, the inventory of manufacturers in the current quarter fell to 60 days. In 2014, it was 58 days, and in 2015, it fell further to 46 days. Huntsman said that the average operating rate of titanium dioxide installations in the world has risen to 80% in 2014 and is expected to exceed 85% in 2017.

The company analyst Hassan Ahmed pointed out that in the past two years, the profitability of the world's major titanium dioxide producers has steadily improved, and sales of titanium dioxide have also increased year by year. However, the profitability of titanium dioxide giants in the first half of the year was not satisfactory, and people were also doubtful about the sustainability of the improvement in profitability of titanium dioxide producers.

Industry is optimistic about next year's market
Thomas Casey, chairman and CEO of Tenova, said in the company's second-quarter earnings conference call that titanium dioxide prices fell by 5% in the second quarter. Market supply continued to exceed demand, and current sales prices did not receive satisfactory returns. However, he remains optimistic about the future of the titanium dioxide market. He said: “2015 is the transitional year for the titanium dioxide business and we continue to face challenges in the second quarter. It is expected that these challenges will continue to exist in the third quarter. However, the industry’s response to this dilemma is already much faster than it was in the past to adapt to The weak demand caused by the cooling of the Chinese economy."

In August of this year, Hassan Ahmed released a research report that the current global inventory of titanium dioxide producers is rapidly approaching normal levels, and the customer's inventory may have dropped below normal levels, meaning that the time for restocking will soon come. At or below the normal inventory level, the price of raw ore will tend to be stable and the spot price of titanium dioxide will rise. These three factors mean that the price of titanium dioxide next year will tend to be normal. He pointed out that in the short to medium term, titanium dioxide production cannot always be near the break-even point, especially for integrated low-cost producers such as Tenor. He expects the profitability of the Huntsman Titanium Dioxide business will return to a normal level of about 12% next year, and Tenova's profitability will be higher.

Glass Bottle Drinks

According to different molds, glass bottles of different shapes can be produced, mainly various special-shaped glass bottles such as wine bottles, beverage bottles, pickles bottles, cosmetic packaging, etc. The glass bottle has a high degree of transparency and corrosion resistance, and the material properties will not change in contact with most chemicals. The manufacturing process is simple, the shape is free and changeable, the hardness is large, heat-resistant, clean, easy to clean, and can be used repeatedly.

Glass Bottle Drinks,Opal Glass Bottles,Drinks Glass Bottle,Glass Bottle For Drinks

Linzhou Linhe Glass Technology Co.,Ltd. , https://www.lhglassbottle.com

Posted on