Latest Update in the SMM Silicon Market

[Gold and Antimony Price Increases Combined with Overseas Project Reaching Full Production, Huayu Mining Expects 2024 Net Profit to Grow Over Threefold YoY] ① Huayu Mining expects its 2024 net profit attributable to shareholders to range from 275 million yuan to 335 million yuan, an increase of 201 million yuan to 261 million yuan compared to the same period last year, up 272.19% to 353.39% YoY. ② The operational capacity of the gold and antimony project of the company's overseas subsidiary, Talco Gold Closed Joint-Stock Company, has improved. Benefiting from both volume and price increases, its profitability has strengthened.

On January 22, several titanium dioxide enterprises, including CNNC Hua Yuan Titanium Dioxide, Jinpu Titanium Industry, and Annada, successively issued price adjustment letters. This followed the price adjustment letter released by LB Group on January 21. From the price adjustment letters of various companies, it can be observed that in this round of adjustments, each company made changes based on market conditions and their own circumstances, without the previously common situation of largely uniform price increases. According to SMM's information from market participants, the recent increase in titanium dioxide prices is mainly due to the tight supply in the spot market after production control during maintenance and pre-holiday stockpiling. This has altered the supply-demand dynamics of titanium dioxide, prompting multiple titanium dioxide enterprises to issue price adjustment letters.

Spring and Autumn Electronics announced on the evening of January 21 that, based on preliminary estimates by the financial department, the net profit attributable to the owners of the parent company for 2024 is expected to reach 175 million to 195 million yuan, an increase of 148.2533 million to 168.2533 million yuan compared to the same period last year (statutory disclosure data), up 554.29% to 629.06% YoY. 2. The net profit attributable to the owners of the parent company after deducting non-recurring gains and losses for 2024 is expected to reach 75 million to 95 million yuan, an increase of 55.2477 million to 75.2477 million yuan compared to the same period last year (statutory disclosure data), up 279.70% to 380.96% YoY.

[SMM Comment: Several Tungsten Enterprises Continue to Raise Long-Term Contract Prices; When Will the Tight Raw Material Supply Situation Reach a Turning Point?] The impact of maintenance by tungsten raw material enterprises on supply is still ongoing. This wave of tungsten price increases, which began in late December due to market concerns over tight raw material supply, limited inventory held by suppliers, and the increasing number of enterprises undergoing maintenance, continues. Entering the second half of January, several tungsten enterprises, including Jiangxi Tungsten, Zhangyuan Tungsten, and a large tungsten enterprise in Fujian, have further raised their newly released long-term contract prices for the second half of January. Despite no significant improvement in downstream demand and a generally low acceptance of high-priced goods on the demand side, the supply side of tungsten raw materials remains in a situation where low-priced goods are hard to procure! Amid the stalemate and tug-of-war between upstream and downstream, how much longer can this supply-driven tungsten price increase last?

According to statistics from the General Administration of Customs, China exported approximately 39,200 mt of various magnesium products in December 2024, up 4.81% MoM and up 9.80% YoY. The export value was approximately $98 million, up 1.03% MoM and down 13.27% YoY.

[Zhongwu Gaoxin: Net Profit in 2024 Expected to Grow 75%-87.8% YoY Due to Changes in Consolidation Scope] On the evening of January 16, Zhongwu Gaoxin announced that from January 1, 2024, to December 31, 2024, net profit attributable to shareholders of the publicly listed firm is expected to be 848 million-910 million yuan, up 75%-87.8% YoY. Net profit excluding non-recurring gains and losses is estimated at 169 million-200 million yuan, down 40.13%-49.56% YoY. Basic earnings per share are projected to be 0.41-0.44 yuan per share.

[Golden Molybdenum Co., Ltd.: 2024 Net Profit Decreased by 3.18% YoY Due to the Decline in Molybdenum Product Prices Compared to the Same Period Last Year] The 2024 performance report released by Golden Molybdenum Co., Ltd. on the evening of January 16 shows that in 2024, the company achieved operating revenue of 135.5537 billion yuan (YoY increase of 17.55%), total profit of 39.0269 billion yuan (YoY decrease of 5.32%), and net profit attributable to shareholders of the publicly listed firm of 30.0047 billion yuan (YoY decrease of 3.18%).