​The titanium dioxide industry is booming and prices are rising

The titanium dioxide industry has seen another wave of price increases following a centralised price adjustment in early February. Companies such as Titanium Technologies, HuiYun Titanium Industry, Annada, CNNC, White and Longbai Group each announced price increases for titanium dioxide in March.

The adjustment range per ton is 1,000 RMB for domestic customers and $150 per ton for international customers. This is the second time this year that titanium dioxide companies have raised prices. There are two main reasons for this price adjustment:

1. Cost support is tough when it comes to titanium concentrates.

Prices of titanium concentrate in the Panxi region were running at peak levels in February, with import prices holding firm and production in major titanium concentrate importing countries, such as Vietnam, which has been affected by the policy, falling sharply.  The Ukraine crisis has led to a sharp reduction in titanium dioxide imports.

At the same time, current titanium dioxide production capacity is being released further and imports of titanium ore are relatively tight. Under these two factors, titanium ore will continue to operate at steep levels this year, thus supporting the upward trend in titanium dioxide prices. Sulphuric acid market prices mostly rose, with slightly higher prices in Shandong, Sichuan, Yunnan and Guangxi Zhuang autonomous regions, where titanium dioxide is produced. The cost of titanium dioxide increased compared with January. Costs will continue to provide strong support to titanium dioxide price increases from late perspective.

1. Downstream demand is good.

The paint industry is the largest downstream customer of titanium dioxide, and the paint industry has a relatively strong correlation with the real estate industry. We will continue to introduce and implement favorable policies. A rebound in the housing market would accelerate recovery in demand from downstream markets, which in turn would drive up demand for titanium dioxide, pushing up prices.