Price Hike in Titanium Dioxide Industry Hits ￥300 per Ton

On February 21, Longbai Group Co., Ltd. announced a significant price adjustment, increasing the sales price of various grades of titanium dioxide by 300 yuan per ton for domestic customers and $50 per ton for international clients. This move has sparked the second round of price hikes in the titanium dioxide sector this year.

As of 3 PM on February 25, over 20 titanium dioxide manufacturers, including China Nuclear Huayuan Titanium Dioxide and Shandong Dongjia Group, have released similar price increase notices, aligning with Longbai's adjustments.

According to Sun Zheyu, Deputy Secretary-General of the Titanium Dioxide Division at the National Chemical Productivity Promotion Center, this collective price increase is primarily driven by the current supply and demand dynamics, rising raw material costs, and increased market stocking needs.

From a supply and demand perspective, the market has recently experienced shifts. Some regions have seen production limits and shutdowns, leading to a decline in operating rates and slower inventory growth, ultimately lowering overall market supply. This scenario has incentivized suppliers to raise prices to restore market equilibrium.

Moreover, the continuous rise in raw material costs, coupled with the historically low price levels of titanium dioxide, has placed many manufacturers in a challenging position. Strong sentiments for price increases are prevalent, as firms seek to elevate product prices to maintain their profit margins.

Additionally, the surge in stocking and inventory buildup during the Spring Festival and other holidays has further propelled the rise in titanium dioxide prices.

Ni Xiaoguang, Chairman of Jiangsu Fanhua Chemical Technology Co., Ltd., remarked that this price increase is largely reactive. Following the Spring Festival, prices for titanium ore and sulfuric acid have surged. Last year's insufficient demand left titanium dioxide prices near cost levels, indicating that manufacturers have little room left for maneuvering. Although downstream demand typically remains moderate after the festive period, rising raw material prices compel producers to follow suit with price hikes.

Currently, the mainstream quotes for domestic sulfuric acid-based rutile and anatase titanium dioxide are between 15,000-16,000 yuan per ton and 13,500-14,500 yuan per ton, respectively. For chloride-based rutile titanium dioxide, the mainstream prices stand at 18,500-21,000 yuan per ton for domestic products and 31,000-35,000 yuan per ton for imports (all prices are inclusive of tax and cash on delivery).