China's Titanium Dioxide Prices Surge in Sixth Consecutive Increase Amid Intensifying Cost Pressures

In late November, titanium dioxide prices unexpectedly surged, marking the sixth round of collective price hikes across the industry. On 26 November, LB Group Co., Ltd. announced an immediate increase of RMB 700 per tonne for titanium dioxide products sold in the domestic market, alongside a US$100 per tonne rise for international markets. Prior to this, foreign producers including Tronox and Kronos had issued their own adjustment notices, with increases primarily ranging between US$130–150 per tonne.

By 2 December, more than 23 titanium dioxide manufacturers had intensively announced price increases. Adjustments in the Chinese market ranged from RMB 500–700 per tonne, while international markets saw rises of approximately US$100 per tonne.

According to Sun Zheyu, Secretary-General of the Titanium Dioxide Branch at the National Chemical Industry Productivity Promotion Centre, the primary driver of the price surge is mounting cost pressure. Prices of key raw materials — titanium ore and sulphuric acid — have risen sharply. By mid-November, the average sulphuric acid price in China had reached 773 yuan per tonne, representing an increase of more than 111% since the beginning of the year, with prices of 98% sulphuric acid in some regions exceeding 900 yuan per tonne. This escalation has placed considerable pressure on producers, compelling manufacturers to raise prices to maintain profitability.

Further contributing factors include rising energy costs and stricter environmental regulations, which have increased overall production expenses. Some smaller producers have been forced to reduce output or shut down due to non-compliance, while larger enterprises have increased investment to meet environmental requirements, resulting in lower operating rates. With voluntary production cuts and shutdowns tightening supply, strengthened market confidence and rising expectations — following prolonged periods of losses or marginal profits — have accelerated upward price momentum.

Analysts note that the latest wave of price increases has provided directional guidance and revived confidence in a market previously locked in stagnation, simultaneously stimulating demand. During the period when price notices were issued, order volumes and turnover rates on the supply side visibly increased. However, analysts also warn of potential risks associated with demand overdraft: without sustained positive drivers, the durability of the current firm pricing environment remains uncertain. Nonetheless, prevailing market sentiment reflects a strong tendency to seize short-term opportunity.

As of late November, the ex-factory price (including tax) for rutile-type titanium dioxide produced via the sulphuric acid process ranged from 12,100–13,300 yuan per tonne. Prices for anatase-type titanium dioxide produced by the sulphuric acid process ranged from 11,600–12,000 yuan per tonne, while rutile-type titanium dioxide produced via the chloride process ranged from 13,500–17,000 yuan per tonne.

Analysts also point out that although titanium ore prices have softened, rising sulphate costs continue to deepen industry losses, prompting some enterprises to lean toward production cuts. Export markets remain under pressure, while domestic demand in China remains essential. With persistently high costs, companies retain strong motivation to support prices, and a modest upward trend in titanium dioxide prices is anticipated for December.