China Coatings Industry 2025: Output Down, Profits Rise

China's coatings industry recorded a decline in production and revenue in 2025, while profits increased despite weakening average prices, according to the latest economic performance briefing released by the China National Coatings Industry Association.

Production and Revenue Decline in 2025

The briefing shows that China's total coatings output reached 34.602 million tonnes in 2025, representing a 7.1% year-on-year decrease. Meanwhile, main business revenue totaled RMB 388.15 billion, down 3.9% year-on-year.

Despite the decline in production and revenue, the industry maintained profitability. Total profits reached RMB 29.25 billion, marking an 11.5% increase compared with 2024.

The average price of coatings stood at RMB 11,200 per tonne, a 3.15% year-on-year decrease, reflecting continued pricing pressure in the domestic market.

Coatings Exports Expand in Volume

Export performance showed stronger momentum in 2025. China's coatings industry exported 407,700 tonnes, an increase of 21.99% year-on-year, while export value reached USD 1.215 billion, up 14.28%.

Titanium Dioxide Exports Edge Lower

China's titanium dioxide (TiO₂) exports totaled 1.8169 million tonnes in 2025, representing a 4.36% decline year-on-year. Export value dropped 14.33% to USD 3.579 billion.

Breaking down by production method:

• Chloride-process titanium dioxide exports reached 366,500 tonnes, up 6.03% year-on-year, accounting for 50.42% of total production, with export value at USD 763 million, down 6.60%.

• Sulphate-process titanium dioxide exports totaled 1.4505 million tonnes, down 6.67%, with export value at USD 2.815 billion, declining 16.21%.

Overall, export conditions for titanium dioxide showed signs of gradual recovery during the year.

Iron Oxide Pigment Exports Remain Weak

China exported 309,300 tonnes of iron oxide pigments in 2025, down 8.77% year-on-year, with export value totaling USD 287 million, a 11.52% decrease. The report notes that export performance for iron oxide pigments remained sluggish throughout the year.

Imports Show Mixed Trends

On the import side, China's coatings industry imported 150,900 tonnes in 2025, representing an 8.01% year-on-year decline. However, total import value rose 11.12% to USD 2.01 billion.

Titanium Dioxide Imports

China imported 74,500 tonnes of titanium dioxide, a 18.92% decrease year-on-year, with import value totaling USD 242 million, down 21.23%.

Among them:

• Chloride-process titanium dioxide imports reached 44,400 tonnes, down 26.67%, with import value of USD 134 million, decreasing 29.86%.

• Sulphate-process titanium dioxide imports totaled 30,200 tonnes, down 3.99%, with import value at USD 108 million, a 6.98% decline.

Iron Oxide Pigment Imports

Imports of iron oxide pigments totaled 191,700 tonnes, down 3.38% year-on-year, while import value fell 6.38% to USD 76 million.

Middle East Tensions Add Supply Chain Risks

The briefing also highlights potential supply chain disruptions stemming from escalating geopolitical tensions in the Middle East.

On February 28, 2026, conflict involving the United States, Israel, and Iran intensified and quickly spread across the Middle East, posing significant risks to global markets and regional security.

According to the report, the coatings industry could face supply chain impacts mainly through energy, methanol, and sulfur markets.

Approximately 23% of global liquefied petroleum gas (LPG), 20% of liquefied natural gas (LNG), and one-third of global crude oil shipments pass through the Strait of Hormuz. Any disruption in this strategic corridor could directly affect global energy supply and downstream petrochemical sectors such as olefins and aromatics, pushing up prices and increasing costs across the coatings and pigment value chain.

China's methanol supply is also vulnerable. More than 60% of China's methanol imports come from Iran, and about 32% of global methanol trade passes through the Strait of Hormuz. Supply disruptions could trigger sharp price fluctuations in global methanol markets, driving up prices across downstream sectors including olefins and acrylic acid. While this could benefit China's coal chemical industry, it would likely place short-term cost pressure on coatings supply chains.

Sulfur supply is another concern. China relies heavily on imported sulfur, much of which comes from the Middle East. Any transportation disruptions through the Strait of Hormuz would likely push sulfur prices higher in China, further boosting the sulfuric acid market.

Rising sulfuric acid prices could in turn significantly increase production costs for industries relying on sulfur-based raw materials, including titanium dioxide and iron oxide pigments, potentially leading to short-term price increases across the coatings materials market.