China Titanium Dioxide Exports Rise on Chloride-Process Demand

China's titanium dioxide exports rose steadily in the first quarter of 2026, driven by stronger overseas demand, accelerated shipments ahead of anti-dumping measures, and rapid growth in higher-value chloride-process products, according to customs data and industry analysts.

Data released by China Customs showed that China exported approximately 536,800 metric tons of titanium dioxide in the first quarter, up 7.15% year-on-year. March exports reached 201,500 tons, increasing 33.03% from the previous month and 8.92% from a year earlier. Imports continued to decline sharply, with first-quarter imports falling 25.10% year-on-year to about 15,600 tons.

Exports of chloride-process titanium dioxide, which carries higher technological content and added value, rose significantly during the period. First-quarter exports of chloride-process products reached about 135,800 tons, up 39.24% year-on-year. In the January-February period alone, exports climbed 45.21% to 84,800 tons.

Industry analysts said the figures indicate that China's titanium dioxide sector is accelerating its transition from large-scale sulfate-process expansion toward higher-quality development centered on chloride-process production, while export product structures continue to upgrade.

Yang Xun, an analyst at Yan Titanium Industry, identified six key drivers behind the strong export performance in the first quarter.

First, the timing shift of the Lunar New Year holiday disrupted shipment schedules, leading exporters to either advance deliveries or delay orders, triggering a rush to secure overseas supply. Second, anti-dumping investigations initiated or resumed by countries including Britain and India prompted overseas buyers to increase inventory purchases ahead of potential tariff hikes.

Third, geopolitical tensions in the Middle East reduced energy availability for some overseas producers, allowing China's stable supply chain to capture returning orders, particularly for chloride-process products that benefited from competitive pricing and improved quality. Fourth, demand from overseas sectors such as real estate remained relatively stable compared with the domestic market, supporting steady orders.

Fifth, China's export market diversification away from the United States accelerated, with exports to Southeast Asia, Europe, and Africa increasing significantly as more developing countries became key markets. Sixth, overseas demand linked to new energy industries and photovoltaics expanded rapidly, creating new growth opportunities for high-end titanium dioxide applications.

Yang said the market reflected a combination of "short-term overheating" and "genuine growth," warning that some demand may have been brought forward in a manner similar to domestic market conditions.

Yu Jie, secretary-general of the Titanium Dioxide Sub-center under the National Chemical Productivity Promotion Center, said China's titanium dioxide trade in the first quarter showed a pattern of "stable export growth, structural optimization, and continued import contraction."

Yu added that the market achieved "stable volumes and rising prices" under strong cost pressure, but cautioned that underlying demand remained weak and external risks were increasing.

Titanium dioxide prices surged sharply during the quarter, especially in March. The rally was mainly triggered by tightening global sulfur supply following geopolitical conflicts in the Middle East in late February, which pushed sulfuric acid prices sharply higher and significantly increased titanium dioxide production costs.

Leading producers raised prices multiple times, with the average price of rutile titanium dioxide reaching 15,260 yuan ($2,100) per ton by the end of March.

According to Yu, the industry continued its production-cut trend that began in 2025, with first-quarter output declining 2.8% year-on-year and capacity utilization remaining below 70%. Low inventory levels around the Lunar New Year holiday also supported upward price momentum.

Yu said overseas buyers replenished inventories during the quarter, while anti-dumping investigations in Britain and India, combined with production cuts by some foreign producers, created favorable conditions for Chinese exports.

Despite the strong first-quarter figures, Yu warned that significant risks remain.

He said the latest price increases were primarily driven by rising costs rather than a substantial recovery in downstream demand from coatings, plastics, rubber, paper, inks, and chemical fiber sectors. Weakness in China's property market continued to limit domestic consumption, while actual transaction volumes for high-priced March orders fell short of expectations.

Export pressure could also intensify in the second quarter as India's pre-stocking effect fades and trade barriers, including anti-dumping investigations, continue to expand. Rising global shipping costs linked to Middle East tensions are also expected to squeeze exporters' profit margins.

Meanwhile, industry profitability remains under pressure. Although selling prices have increased, raw material costs have risen even faster, leaving many producers operating at a loss or with severely compressed margins.

Yu said the first-quarter trade data demonstrated the industry's resilience and structural upgrading progress amid external shocks, but future sustainable growth will depend on technological advancement, strengthening competitiveness in high-end products, and effectively managing overseas trade risks and domestic demand challenges.

Chen Zhihong, vice general manager of international sales at Jiangsu Fanhua Chemical Technology Co., Ltd., said the continued decline in imports suggests China's total titanium dioxide imports could fall to a new low in 2026 if current trends persist.

Chen noted that exports were largely unaffected by the Lunar New Year holiday, while chloride-process exports posted substantial year-on-year growth, reflecting expanding production capacity, improving product quality, and strengthening competitiveness despite raw material cost pressures.

According to Chen, the titanium dioxide market continued the weak operating conditions seen in 2025 at the start of the year, with the industry running under heavy pressure. However, geopolitical conflicts involving the United States, Iran, and Israel accelerated the price rally after the Lunar New Year holiday.

He said the closure of the Strait of Hormuz pushed up oil prices and sharply reduced sulfur imports, contributing to an unusually rapid and aggressive price surge in the first quarter. The pace and scale of price increases exceeded expectations across both upstream and downstream markets, while domestic and international markets became increasingly interconnected.

Many producers faced severe supply shortages, with inventories rapidly depleted and tight supply conditions expected to continue for some time, Chen added.

At the same time, Chen warned that sustained price increases could eventually weaken downstream purchasing willingness. While the stronger market slightly improved operating conditions for producers, downstream buyers may shift from urgent purchasing to cautious waiting if prices continue rising too quickly, especially as overseas competitors are increasing prices at a slower pace and by smaller margins.

He said the industry must remain alert to the risk that aggressive price increases could ultimately undermine future demand growth.