Cost Increases, Relatively Small Inventory Pressure, and Export Growth YoY Multiple Titanium Dioxide Companies Announce Third Round of Price Hikes 【SMM Analysis】

Published: Mar 24, 2025 16:53

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SMM Analysis: Cost Increases, Relatively Small Inventory Pressure, and Export Growth Lead to Third Round of Price Hikes by Multiple TiO2 Producers Affected by high titanium concentrate prices and rising raw material costs such as sulphuric acid; from the supply perspective, TiO2 production saw a slight MoM decline in January and a slight MoM increase in February, with no significant growth in TiO2 supply. The inventory pressure for TiO2 producers remained relatively small. Additionally, there was a notable YoY increase in TiO2 exports in February. Influenced by these fundamental factors, multiple TiO2 producers including LB Group issued their third round of price adjustment letters for the year.

SMM Mar 24 News: Affected by high titanium concentrate prices and rising raw material costs such as sulphuric acid; from the perspective of titanium dioxide production supply, January titanium dioxide production saw a slight MoM decline, while February production experienced a slight MoM increase. The supply end of titanium dioxide did not see significant growth, and inventory pressure for titanium dioxide producers was relatively small. Additionally, February export data showed a notable YoY increase, among other fundamental factors, leading multiple titanium dioxide companies including LB Group to issue their third round of price adjustment letters for the year.

LB Group and other titanium dioxide companies issued price adjustment letters. On March 21, LB Group announced a price hike for all models of titanium dioxide, effective from March 21, 2025. The selling price will be increased by 500 yuan/mt for domestic customers and by $70/mt for international customers. In addition, several other titanium dioxide companies, including Anada, Zhonghe Titanium, Xianghai Technology, and Guangxi Shunfeng Titanium, also issued price adjustment letters.

Spot prices: For SMM titanium spot prices, please refer to the SMM quotation. On March 24, the SMM rutile titanium dioxide price was quoted at 14,200-15,000 yuan/mt, with an average price of 14,600 yuan/mt. This average price has remained flat since February 17. Compared to the average price of 14,500 yuan/mt on December 31, 2024, it increased by 100 yuan/mt.

Production: For more details, please check the SMM metal industry chain database. From the perspective of titanium dioxide production, SMM data shows that China's titanium dioxide production in January 2025 saw a slight MoM decrease, while February 2025 production saw a slight MoM increase. In early February, due to a significant rise in the cost of raw materials like sulphuric acid and titanium concentrate, leading enterprises collectively issued price adjustment letters, and most titanium dioxide companies maintained firm quotations. Moreover, the operating rates of some previously reduced or suspended titanium dioxide producers were adjusted. As overseas market inventories gradually decreased, export demand is expected to continue to be a highlight for titanium dioxide market demand. After multiple rounds of price adjustment letters, SMM predicts that domestic titanium dioxide production may gradually increase in March.

Exports: According to SMM statistics based on customs data, China's titanium dioxide exports in February were 157,511 mt, up 17.85% YoY, with cumulative exports up 7.68% YoY. The continuous growth in titanium dioxide exports has become a key factor supporting titanium dioxide demand in recent years. In 2024, titanium dioxide exports reached 1,901,690 mt, an increase of 260,071 mt compared to 1,641,619 mt in 2023, representing a 15.84% YoY increase. The 2023 titanium dioxide export volume was up 16.75% YoY compared to 2022.

Outlook: Since entering 2025, high titanium concentrate prices and continuously rising sulphuric acid prices, along with increasing raw material costs, coupled with low inventories and tight spot supply for some titanium dioxide companies, have led to price increases despite no significant growth in domestic demand. However, export demand remains promising. According to SMM and market sources, the price hikes announced by multiple titanium dioxide companies are expected to boost market confidence. Of course, whether the price adjustments will be accepted by the market remains to be seen, and SMM will continue to monitor the implementation of the price adjustment letters.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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