China's Titanium Dioxide Industry Kicks Off First Price Hike in the Second Half of 2025

Recently, Panzhihua Tihai Technology Co., Ltd. issued a price adjustment notice, citing current domestic and international titanium dioxide market conditions and the continued rise in raw material costs. Effective immediately, the company announced price increases of RMB 800 per ton for both rutile and anatase grades sold to domestic customers, and USD 80 per ton for overseas clients. This marks the first price hike in China's titanium dioxide sector in the second half of the year.

Following suit, industry leaders including Lomon Billions Group Co., Ltd., Guangdong Huiyun Titanium Industry Co., Ltd., Shandong Dawn Titanium Industry Co., Ltd., and Anhui Annada Titanium Industry Co., Ltd. released similar announcements. Their adjustments ranged between RMB 500–600 per ton for domestic clients and USD 70–80 per ton for overseas clients. As of 9 a.m. on the 20th, more than 20 companies had issued price hike letters, with others indicating they would follow. This collective move underscores the industry's entry into its first coordinated price increase of the second half.

According to Yan Ti, a titanium dioxide industry analyst, four main factors explain the recent surge:

1. The persistently high costs of raw and auxiliary materials such as ilmenite and sulfuric acid have placed enormous pressure on producers, with some operating at a loss.

2. With market prices depressed and costs elevated, more plants have cut or halted production, bringing down overall operating rates and tightening supply, pushing supply and demand closer to balance.

3. Having endured prolonged losses and sharp price declines, producers are eager for a rebound.

4. With the traditional peak season approaching, conditions provide a sound basis for price hikes, making this a strategic moment.

Sun Zheyu, Deputy Secretary-General of the Titanium Dioxide Branch of the China National Chemical Productivity Promotion Center, noted that in mid-August the market saw a divergence: "leading producers announced hikes, quotations edged up, but actual transactions remained subdued." He emphasized that it is premature to declare a trend reversal; rather, this appears to be a "cost-driven tentative rebound."

Before the adjustment, titanium dioxide prices were hovering near their lowest levels in nearly eight years, leaving the sector in the red. On the authenticity of the rebound, Sun observed that mainstream rutile (sulfuric acid process) quotations have risen by only RMB 300–500 per ton from late July lows. Downstream coatings and plastics demand remains limited to small, just-in-time orders, while traders are largely in wait-and-see mode, with many deals settled on a "case-by-case" basis. On the cost side, while ilmenite prices have eased slightly, they remain high, and sulfuric acid prices have surged again since early August-exceeding RMB 600 per ton in some regions. The industry's average cost line has risen to around RMB 12,000 per ton, with producer losses not materially reduced.

* Inventory: Industry-wide holdings stood at 28–30 days in early August-slightly down from July's peak but still higher than in prior years. Without rapid drawdowns in September, upside will be limited.

* Demand: Real estate financing remains tight; although exports showed signs of recovery (July exports rose 11% month-on-month), high shipping costs and the EU's preliminary anti-dumping ruling have muted marginal support.

* Supply: Industry operating rates were 68–70% in August. New chloride-process capacity is slated for trial runs in September; if commissioned, sulfuric acid-based products will face renewed pressure.

For buyers, Sun recommends maintaining a "small-batch, staggered purchasing" strategy and avoiding aggressive buying before early September. Companies with inventories exceeding 20 days should wait for a potential pullback. On the sales side, he suggests that the late August–early September window, when leading producers hold firm on prices, presents the best opportunity for de-stocking-favoring fulfillment of smaller orders to secure cash flow. From an investment standpoint, he advises focusing on companies with cost advantages in chloride-process production and smooth export channels, adding that if prices retest lows in September, this could present a buying opportunity.

Currently, rutile-grade titanium dioxide is priced at RMB 12,200–13,200 per ton (ex-works, including tax), while anatase-grade prices stand at RMB 11,300–11,600 per ton. Raw material costs remain elevated, with sulfuric acid prices surging and ilmenite still expensive. Output has declined amid production cuts, while inventories of certain grades have tightened. With some producers halting new orders, fresh deals have picked up. As downstream manufacturers and distributors begin restocking ahead of the "Golden September, Silver October" peak season, a new round of price hikes has taken shape. Several producers report robust new orders, signaling a gradual recovery in the titanium dioxide market.