Titanium dioxide market is in the doldrums, with cost support and weak demand locked in a tug-of-war [SMM Titanium Spot Express]

SMM, July 27 –  

Today, in terms of titanium dioxide prices, rutile TiO2 was quoted at around 14,500-16,000 yuan/mt, with actual transactions generally below quoted levels. The low-end price of anatase TiO2 was near 13,000 yuan/mt. Chloride-process TiO2 was quoted at 15,500-17,000 yuan/mt.

The titanium dioxide market continued its subdued note from last week, with mainstream prices little changed WoW. On the supply side, overall industry production this month pulled back from the previous two months, and inventory pressure gradually built up. Inventory levels varied from half a month to one month's production. Meanwhile, low-price deals still existed; an individual enterprise, seeking to recoup funds, recorded a transaction as low as 13,600 yuan/mt, but major producers' quotes remained unchanged, causing no significant impact on the overall pricing system. Cost side, sulphuric acid and sulphur prices remained firm, providing strong bottom support for titanium dioxide prices and limiting the downside room. Demand side, the market extended its weakness, with downstream buyers making only small just-in-time procurement, scarce transactions, and a strong wait-and-see sentiment. Looking ahead, we expect potential modest recovery: first, restocking demand after downstream inventories are drawn down; second, month-end delivery-based purchases providing a short-term boost; and third, export growth offering some support. However, the recovery strength is likely limited, and the market will mostly consolidate on a subdued note in the near term.