“Soaring Sulfuric Acid, Tightening Ore Supplies”: The High-Stakes Battle Behind the Titanium Dioxide Price Surge

In late November 2025, China’s titanium dioxide (TiO₂) industry was hit by a sudden wave of price hikes. Industry leader LB Group took the lead on November 26 by issuing a price adjustment notice, announcing an immediate domestic price increase of RMB 700 per metric ton and a USD 100 per metric ton hike for international markets. This move quickly triggered a domino effect, with major producers including Shandong Daoen Titanium, Shandong Jinhai Titanium, Guangxi Bluestar Dahua, and Nanjing Tioxide Chemical swiftly following suit with similar announcements—marking the official start of a comprehensive industry-wide price rally.

This coordinated price adjustment was no coincidence; it resulted from the convergence of multiple pressures, most notably soaring raw material costs and deliberate supply-side contractions. Beyond a mere intra-industry pricing shift, this development signals a pivotal moment in the evolving power dynamics across the entire supply chain.

Runaway Sulfuric Acid Prices: The Core Cost Driver

Sulfuric acid is an indispensable raw material in TiO₂ production, especially in the dominant sulfate process. According to the latest data, by mid-November 2025, the average domestic price of sulfuric acid had surged to RMB 773 per metric ton, a staggering increase of over 111% compared to the beginning of the year—reaching a multi-year high. Behind this figure lies a “sulfuric acid crisis” fueled by multiple converging factors.

First, persistently high sulfur prices have been a key cost driver. As the primary feedstock for acid production, sulfur prices are heavily influenced by global energy market volatility. Throughout 2025, crude oil prices remained on an upward trajectory, pushing sulfur spot prices to repeated highs. Compounding the issue, restricted sulfur imports further tightened the domestic market.

Second, frequent shutdowns of sulfuric acid production units have reduced effective capacity. Stricter environmental regulations and aging infrastructure have led many acid producers into scheduled maintenance periods. For instance, several large acid plants in North and East China began shutting down in Q3, creating significant regional supply gaps.

Additionally, environmental restrictions and dual carbon control policies have quietly constrained the expansion of sulfuric acid output. Although some regions have started easing these measures, overall capacity recovery remains sluggish and unable to keep pace with downstream demand growth.

Under these conditions, the sustained rise in sulfuric acid prices has directly impacted TiO₂ manufacturing. Industry estimates suggest that each ton of TiO₂ consumes approximately 1.5–2 tons of sulfuric acid, meaning the recent acid price surge alone adds hundreds of yuan to per-ton production costs. Faced with such intense cost pressure, TiO₂ producers risk severe margin erosion if they fail to adjust selling prices promptly.

Persistent Tightness in Titanium Ore Supply Squeezes Margins Further

Beyond sulfuric acid, titanium concentrate—another critical raw material—continues to face supply constraints. In recent years, growing global strategic interest in titanium resources has prompted more conservative export policies in key producing countries like Australia and Indonesia, limiting China’s import channels. Meanwhile, although domestic mining regions such as the Panzhihua-Xichang area in Sichuan maintain some output, increasing extraction difficulty and stricter environmental standards have made capacity expansion extremely challenging.

Data shows that in the first three quarters of 2025, China’s titanium concentrate imports declined by approximately 8% year-over-year, while domestic self-sufficiency remains below 40%, leaving the country highly dependent on foreign sources. With steady downstream demand, this supply bottleneck has intensified, pushing ore prices higher.

Taken together, the dual surge in sulfuric acid and titanium ore prices has created a “pincer movement” on TiO₂ producers. According to industry analysts, average production costs for TiO₂ have risen by more than 20% since early 2025, pushing some smaller enterprises into the red. In this context, the decision by leading firms to initiate price hikes is not only a necessary response to cost pressures but also a strategic move to uphold industry order and prevent destructive price wars.

Supply-Side Discipline Bolsters Pricing Power

Notably, beyond cost pressures, deliberate supply-side adjustments have provided crucial support for this round of price increases. In November 2025, total domestic TiO₂ supply declined month-over-month, with capacity utilization falling to 72%—nearly 10 percentage points lower than the same period last year. Several companies announced temporary maintenance or planned production cuts, citing equipment upgrades, energy-saving goals, or strategic realignments.

For example, Shandong Jinhai Titanium explicitly stated in its price notice: “In light of current market conditions and internal operational needs, we have decided to implement temporary maintenance.” Similar actions were reported in Guangxi and Jiangsu. These non-market-driven supply reductions have effectively alleviated oversupply concerns and strengthened producers’ pricing leverage.

From an industrial perspective, this reflects a structural transformation within the TiO₂ sector—shifting from a past model reliant on scale-driven, extensive growth toward a more refined, efficiency-focused, and sustainable operational paradigm. By proactively reducing output, companies aim to optimize inventory, manage cash flow risks, and create favorable conditions for price recovery.

Can Downstream Demand Absorb the Hike? Sustainability Hangs in the Balance

Despite upstream cost surges and tightened supply, any price increase must ultimately be validated by market demand. TiO₂ is widely used in coatings, plastics, paper, inks, and other sectors, with architectural coatings and automotive applications being the largest consumption segments.

However, global economic recovery in 2025 has been sluggish. Slowing real estate investment and weak manufacturing orders have dampened downstream purchasing sentiment. Particularly in China, the property sector remains in deep adjustment, with fewer new construction projects and weakening renovation demand—dragging overall TiO₂ consumption.

Meanwhile, international demand shows divergence. Markets in Europe and North America remain relatively robust, supported by green building initiatives and new energy industries driving demand for premium-grade TiO₂. In contrast, regions like Southeast Asia and Latin America, grappling with inflation, exhibit high price sensitivity, potentially resisting the latest price hikes.

Thus, while the current price increase is already underway, its sustainability hinges on downstream acceptance. If end-users cannot pass on higher costs to consumers—or turn to substitutes such as nano-silica or calcium carbonate—the elevated pricing strategy may prove short-lived.

Comparison of Recent Price Adjustment Notices

Note: Nanjing Tioxide Chemical’s slightly lower adjustment may reflect differences in product mix or customer base.

Outlook: Accelerated Industry Consolidation and the Push for Quality Growth

Behind this TiO₂ price surge lies a profound industry transformation. On one hand, cost-driven price adjustments are becoming the new normal, compelling companies to enhance risk resilience and optimize supply chain management. On the other, competition is shifting from price wars to value-based differentiation, where technological capability, brand strength, and service quality will define future winners.

In the near term, TiO₂ prices are expected to remain volatile but elevated. Should sulfuric acid and titanium ore prices continue climbing, additional rounds of price hikes cannot be ruled out. However, if downstream demand fails to recover, the market may experience temporary corrections.

For investors, attention should focus on companies with integrated resource advantages—those owning their own mines, operating captive sulfuric acid plants, or possessing overseas resource channels. Such enterprises enjoy greater cost flexibility and are better positioned to weather external shocks.

Ultimately, the 2025 TiO₂ price surge is far more than a short-term adjustment—it marks a critical inflection point in industry restructuring. It underscores a fundamental truth: in an era of heightened global uncertainty, the chemical industry’s sustainable development depends on technological innovation, secure resource access, and deep supply chain collaboration. Only by embracing a high-quality growth path can companies thrive amid intensifying competition.