LB Group Leads Titanium Dioxide Price Hike Amid Export Barriers and Cost Pressures

As 2024 comes to a close, China’s titanium dioxide market has witnessed new developments after a relatively stable period. On December 27, Panzhihua Taihai Technology Co., Ltd. issued a price adjustment notice, announcing an increase of 500 CNY/ton for domestic rutile and anatase titanium dioxide and a rise of 60 USD/ton for international customers.

In the titanium dioxide industry, it is customary for leading enterprises to initiate price hikes, followed by other companies. As a market leader, LB Group issued four price adjustment notices in 2024. Following LB Group, international titanium dioxide giants such as Chemours, Kronos, Venator, and Tronox also announced price hikes.

Specifically, LB Group raised prices for international clients by 100 USD/ton on January 1, by 700 CNY/ton domestically and 100 USD/ton internationally on January 19, by 500 CNY/ton domestically and 100 USD/ton internationally on March 18, and again by 100 USD/ton internationally on September 2. Throughout 2024, LB Group cumulatively raised prices for international clients by 400 USD/ton and for domestic clients by 1,200 CNY/ton, with higher frequency of price adjustments for international clients.

Despite the price increases, Chinese titanium dioxide exports face significant barriers due to anti-dumping investigations from the EU, Brazil, India, and Saudi Arabia. According to customs data, China exported 149,300 tons of titanium dioxide in November 2024, down by 5,000 tons month-on-month (-3.24%), but up 19.54% year-on-year.

Currently, other domestic titanium dioxide companies are adopting a wait-and-see attitude, awaiting further announcements from LB Group. Amid weak downstream demand and high cost pressures, the industry remains in a loss-making state. However, the strong price of ferrous sulfate, a byproduct, has alleviated some cost pressures. Titanium dioxide's current mainstream ex-factory prices are 13,800–14,700 CNY/ton for rutile, 12,500–13,000 CNY/ton for anatase, and 16,000–17,500 CNY/ton for the chloride process.

Meanwhile, the barium sulfate market has undergone six consecutive price hikes, with cumulative increases reaching 1,000 CNY/ton. Leading barium sulfate enterprises, including Guangxi Lianzhuang Technology, Shaanxi Fuhua Chemical, Qingdao Yilite, Guizhou Yufulong Technology, and Guizhou Hongxing Development, announced price increases of around 200 CNY/ton. The price hikes were driven not by a recovery in downstream demand but by changes in mineral resource supply-side dynamics.

On December 25, 2023, Wang Guanghua, Minister of Natural Resources, explained the draft amendment to the Mineral Resources Law during the 7th meeting of the 14th National People's Congress Standing Committee. The amendment focuses on strengthening the national mineral resource security system, addressing key issues, and enhancing targeted and practical policies. On November 8, 2024, the National People's Congress Standing Committee approved the newly revised Mineral Resources Law, which will take effect on July 1, 2025.

The new law emphasizes the principles of unified planning and rational layout for mineral resource exploration and exploitation. Due to the non-renewable nature of barite ore, China has frequently issued policy documents in recent years to restrict mining activities and limit low-cost exports, leading to supply shortages for barium sulfate.

Additionally, the production of calcium carbonate is also facing “force majeure” difficulties. Rising raw material prices have increased calcium carbonate production costs by 10% compared to last year, leaving minimal profit margins. Soaring transportation costs have further driven price increases throughout the supply chain, with multiple ore powder manufacturers announcing price hikes of 15 CNY/ton during the peak production season in September and October.