Titanium Dioxide Prices Surge Four Times! Net Profits Plunge by 70%

On January 21, leading titanium dioxide producers Longbai Group (002601) and Huiyun Titanium Industry (300891) announced significant price hikes, with domestic titanium dioxide prices increasing by 300 yuan/ton and international prices rising by 50 USD/ton, effective immediately.

Following this, several other companies, including China Nuclear Titanium Dioxide (002145) and Anada (002136), also announced price increases. China Nuclear Titanium Dioxide stated that starting January 22, it would raise domestic prices by 500 yuan/ton and international prices by 100 USD/ton. Anada similarly planned a 500 yuan/ton increase for both its rutile and anatase grades in the domestic market, with the same increase in international pricing.

The collective price adjustments among titanium dioxide companies have been attributed to current market conditions, including the prices of raw materials. Huiyun Titanium Industry noted that the price hike is a response to changes in both domestic and international market dynamics. Additionally, Shanghai Metals Market (SMM) emphasized that the recent price surge stems from a supply shortage in the spot market due to maintenance and pre-holiday stockpiling.

Titanium dioxide is a crucial fine chemical raw material extensively used in coatings, plastics, rubber, inks, and paper, often referred to as "industrial monosodium glutamate." Its demand closely ties to the real estate and infrastructure sectors. The primary raw materials for titanium dioxide production are titanium concentrate and sulfuric acid, with the former experiencing tight supply and persistently high prices.

In 2024, several domestic titanium dioxide companies implemented four rounds of price increases; however, some firms are still projecting reduced earnings for the year. Anada reported a slight decline in gross margins amid rising raw material costs, forecasting a net profit between 13.67 million and 20.49 million yuan, translating to a year-on-year decline of 68.4% to 78.92%. Huiyun Titanium Industry also anticipates intensified competition due to a slowing global economy, projecting a significant drop in net profit to between 3.75 million and 5.25 million yuan, down 87.21% to 90.86% compared to the previous year.

Jinpu Titanium Industry (000545) indicated a soft market demand for titanium dioxide, leading to sustained price declines since April 2023. Coupled with significant increases in the price of sulfuric acid, the company expects a net loss between 201 million and 265 million yuan, representing a 25% to 65% decline.

According to data from Shengyi Commodity Pricing Platform, the average domestic price for titanium dioxide fell by 9.61% in 2024. By the end of 2024, prices for sulfuric acid-based rutile titanium dioxide ranged between 14,000 yuan/ton and 15,700 yuan/ton, while anatase titanium dioxide was priced between 13,000 yuan/ton and 13,200 yuan/ton.

Bi Sheng, secretary-general of the Titanium Dioxide Industry Technology Innovation Strategic Alliance, noted that the average capacity utilization rate across the domestic titanium dioxide industry stood at a low 80.64% in 2024.

Additionally, on January 9, 2025, the European Commission announced its final ruling on anti-dumping investigations against Chinese titanium dioxide products, imposing anti-dumping duties. The new method of imposing duties will shift from a percentage-based system to a per-kilogram basis: Longbai Group will face a duty of 0.74 euros/kg, Anhui Jinxing Titanium Dioxide Group 0.25 euros/kg, while other responding companies will be charged 0.64 euros/kg.

China is the largest producer of titanium dioxide in the Asia-Pacific region and a major exporter. In 2024, the country reached a record output of 4.766 million tons, with exports significantly increasing as well. According to customs data, from January to November 2024, China exported approximately 1.7433 million tons of titanium dioxide, surpassing the total export volume for the previous year.

Industry analysts suggest that the final ruling on anti-dumping duties may have a short-term impact on China's titanium dioxide sector, particularly affecting price competitiveness. However, China's overall advantages—including quality, supply reliability, and service—remain strong.