Panzhihua Steel Vanadium and Titanium take off the hat

According to the Securities Daily News: On March 28, *ST Vanadium Titanium (000629. SZ) successfully removed the stars and took caps. The company's shares were referred to as Panzhihua Steel Vanadium Titanium. Although Panzhihua Vanadium and Titanium was suspended for one day due to the holding of the shareholders meeting yesterday, Panzhihua Vanadium and Titanium performed exceptionally in the secondary market one day after taking off the cap. The company’s share price gapped higher and higher, with a gain of 3.84% throughout the day, the highest in the day. The increase was more than 8%.

Although the company only announced the 2010 annual report in March this year and disclosed that the company will apply to the regulatory authorities to revoke warnings and special handling of delisting risks, Panzhihua Vanadium and Titanium has already implemented major asset replacement. The outside world has already confirmed the company's 2010 results. expected. The speed at which the company was allowed to “remove hats” was also very fast. In less than a month, the company’s application was deeply rehabilitated.

The Panzhihua Steel Vanadium and Titanium's ability to take off the cap from the star should be attributed to the 2010 annual profit turnaround. The company stated that due to the free and voluntary advantages, the charge structure is further optimized, the cost of pig iron control is better, and the allocation of resources is optimized. The structural adjustment of the varieties minimizes the impact of the increase in raw fuel prices.

A new metal materials industry analyst told the "Securities Daily" reporter that the Panzhihua Vanadium and Titanium successfully took off the cap, and there are important reasons.

We should not let vanadium and titanium become the second rare earth." March 23, 2011, the Ministry of Land and Resources announced that the "Twelfth Five-Year Plan for Comprehensive Utilization of Vanadium and Titanium Resources and Industrial Base Planning" led by the National Development and Reform Commission will be The use of vanadium and titanium resources to make major changes in the use of ideas. This has formed a long-term good for the relevant listed companies." The analyst said.

According to statistics, in the past, the utilization of vanadium-titanium and associated (co)precious metal ore resources was often preceded by vanadium and titanium. However, relative to steel, the added value of vanadium and titanium is higher. With overcapacity of steel and unreasonable use of vanadium and titanium resources, during the “Twelfth Five-Year Plan” period, vanadium-titanium-titanium will be used as the main product for metallurgy (co-) mineralization, and steel will become a by-product.

Some experts told reporters that in the face of the disorderly development of vanadium and titanium resources, the country has formulated an industrial plan at a strategic level to strengthen the protection and comprehensive utilization of vanadium and titanium resources and prevent vanadium and titanium from becoming the next rare earth.

At present, vanadium and titanium are used as rare metals and are widely used. It is understood that vanadium is mainly used in alloys to improve the performance of steel. At the same time, vanadium batteries have been commercialized in the US, Canada, Europe, Japan, and Australia for wind power storage, photovoltaic energy storage, and power grid peak shaving. Titanium is widely used in the traditional fields of bleaching, painting, and papermaking. The processed titanium is used in high-end aerospace and military fields. With the rapid development of new energy and the improvement of steel performance requirements, the future prospects for the use of the two materials are very broad.

It is reported that in fact, China's reserves of vanadium and titanium resources are very large. According to statistics, the current world reserves of vanadium are about 159.8 million tons, of which South Africa accounts for 46%, Russia and the former CIS countries account for 23.6%, the United States accounts for 13.1%, China accounts for 11.6%, and other countries total less than 6%. The world’s titanium base reserves of about 1.77 billion tons, China accounted for more than 37%. The reporter learned that China's vanadium and titanium resources are mainly distributed in the Panxi region of Sichuan and the Chengde area of ​​Hebei. Among them, Panxi vanadium-titanium magnetite has the most abundant resources, with 618 million tons of resources, accounting for about 95% of the country's total, accounting for global 35%.

Panzhihua Vanadium and Titanium took advantage of vanadium and titanium resources "In view of the current national plan for the comprehensive utilization of the "Twelve Five" vanadium and titanium resources, on March 25, Panzhihua Iron and Steel Group Co., Ltd. received the "National Development and Reform Commission on the Fan Gang vanadium and titanium resources. “Comprehensive Utilization and Approval of Industrial Structure Adjustment Plan” signified that Panzhihua Iron and Steel Company has officially approved a series of major strategic projects represented by Xichang Vanadium and Titanium Resources Comprehensive Utilization Project, and upgraded the vanadium and titanium resources for the adjustment of Pangang’s industrial structure. The use of standards and enhance the core competitiveness of enterprises, the implementation of the country's western development strategy, etc.." The non-ferrous metals industry analyst said.

According to the National Development and Reform Commission’s approval, in order to implement the “Reform and Rejuvenation Plan for the Iron and Steel Industry” and to implement the western development strategy, the strategic role of Panzhihua's vanadium and titanium resources should be fully utilized, and the advantages of resources should be changed to economic advantages and strengthen vanadium. The titanium industry promotes the economic recovery and development of Sichuan Province after the disaster. Under the premise of ensuring that the total steel output of Sichuan Province remains unchanged, it agrees to implement Panzhihua Steel's comprehensive utilization of vanadium and titanium resources and its industrial structure adjustment plan. After the implementation of the plan, some existing production facilities will be phased out. The total planned investment is 37.128 billion yuan, of which fixed assets investment is 33.107 billion yuan.

According to industry sources, the price of vanadium is at a low level since 2005. At present, the price of vanadium is only half of the 2007-2008 high. He expects that in the future concrete standards, three-base rebar will be gradually implemented to replace secondary steel rebar. In order to increase the demand for vanadium, the “Twelfth Five-Year Plan” for the comprehensive utilization of vanadium and titanium resources will reduce and limit the indiscriminate use of vanadium by privately-owned small enterprises, thus reducing the supply of vanadium. With the increase of vanadium prices in the future, the profitability of vanadium business will be expected to increase gradually.

“Because of the supply-demand relationship, the company’s titanium dioxide price has risen by more than 30% since the beginning of the year, and tons have risen by more than 5,000 yuan per ton. The company has 80,000 tons of titanium dioxide production capacity, which can be estimated to increase earnings per share by more than 0.05 yuan. In addition, 15,000 yuan. Titanium sponge titanium is expected to be put into production this year, and the company will take a solid step in the field of deep processing of titanium materials,” said the industry insiders.

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