Cost Support Strengthened, Rutile Titanium Dioxide Rose Slightly — SMM Titanium Spot Cargo Express

Price Trends

Today, China's titanium dioxide market prices edged up slightly. Specific quotes are as follows:

SMM China Titanium Dioxide Index: average price at 15,690 yuan/mt, up 176 yuan/mt from the previous trading day. Anatase titanium dioxide: quoted at 13,800-14,200 yuan/mt, with an average price of 14,000 yuan/mt, prices remained stable. Rutile titanium dioxide: quoted at 14,800-16,500 yuan/mt, with an average price of 15,650 yuan/mt, up 250 yuan/mt from the previous trading day; export FOB quoted at $2,200-2,350/mt, with an average price of $2,275/mt, up $25/mt. Chloride-process titanium dioxide: quoted at 15,500-17,500 yuan/mt, with an average price of 16,500 yuan/mt, prices remained stable; export FOB quoted at $2,300-2,500/mt, with an average price of $2,400/mt, prices remained stable.

Market Analysis

Today, China's titanium dioxide market continued to hold up well. Rutile titanium dioxide prices were raised slightly, while anatase and chloride-process titanium dioxide prices remained stable, with the overall market presenting a "divergent rise" pattern.

Cost side, sulphuric acid prices fluctuating at highs over the long term remained the core support. Enterprises' production losses had not eased. Coupled with the fermentation of news about copper enterprises in Yunnan halting production for maintenance, expectations of supply tightening for sulphuric acid intensified, further reinforcing titanium dioxide enterprises' willingness to hold prices firm, which was also a key driver behind today's rise in rutile titanium dioxide prices.

Supply side, titanium dioxide enterprises currently maintained high operating rates, with most enterprises running at full capacity. Market supply was ample, but leading enterprises, leveraging brand and channel advantages, faced relatively small resistance in promoting new prices, while small and medium-sized producers, due to weaker market competitiveness, found it more difficult to implement new prices. The supply side exhibited a divergence of "stable leaders, struggling smaller players."

Demand side, performance remained mediocre. In the domestic trade market, downstream coatings, plastics, and other industries mostly purchased based on rigid demand, with limited willingness for bulk restocking, and market trading activity was relatively low. In the export market, affected by geopolitical factors and ocean freight rate fluctuations, order signing diverged significantly. Enterprises with a high share of export orders were busy rushing shipments, while those with a low export share struggled to sign orders. Overall, the demand side provided limited price support.

Looking ahead, titanium dioxide prices are expected to hold up well in the short term, supported by costs, but sustained price rises still require substantive improvement on the demand side. If downstream demand remains sluggish, small and medium-sized producers may face pressure from price softening. Continued attention should be paid to sulphuric acid price trends, enterprise operating conditions, and changes in downstream procurement pace.