The European Commission has announced a proposal to impose tariffs on Chinese producers of titanium dioxide (TiO2) – the main business segment for CInkarna Celje. According to the proposal, the proposed customs duties will range from 14.4 to 39.7%. You can read more about the tariff proposal in the article.

Recently, The European Commission has announced a proposal to impose tariffs on Chinese producers of titanium dioxide (TiO2). According to the proposal, the proposed customs duties will range from 14.4 to 39.7%. The decision, the document states, follows a complaint from September 2023, submitted by the European Titanium Dioxide Coalition on behalf of producers representing more than 25% of the total titanium dioxide production in the EU. You can access the proposal here.

This directly affects one of the Slovenian blue chips, SBITOP constituent – Cinkarna Celje [CICG SV]. In the latest financial statements that Cinkarna published, the company emphasized the impact of imports from China. The company noted the top line decreased both due to lower quantities & lower sales prices. However, quantities decreased due to lower demand from diminished economic activity.  

Cinkarna Celje’s key financial [2019 – 2023, EUR m]

Source: InterCapital Research, LJSE

Finally, at the end of 2023, the company published its Business Plan for 2024. In the business plan, company noted it expects the margins to stand at a similar level as FY 2023 but with lower demand for TiO2 pigment demand. However, it should be emphasized that the business plan is relatively conservative, especially taken the latest aforementioned development.

Cinkarna share price [2020 – 2024 YTD]

Source: InterCapital Research, Bloomberg