Costs Climbed, Spot Supply Tightened for Some, Exports Impressive: Multiple Titanium Dioxide Companies Announced Third Round of Price Hikes [SMM Analysis]

SMM March 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 titanium dioxide supply did not show significant growth, with producers' inventory levels low and some companies facing tight spot supply. Additionally, February export data showed a notable YoY increase, leading multiple titanium dioxide enterprises, including LB Group, to issue their third round of price adjustment letters for the year. LB Group and other titanium dioxide producers issued price adjustment letters. On March 21, LB Group announced a price hike for all types of titanium dioxide, effective from March 21, 2025, increasing domestic selling prices by 500 yuan/mt and international selling prices by $70/mt. In addition, Anada, CNNC Huatai, Xianghai Technology, and Guangxi Shunfeng Titanium Industry, among others, also released price adjustment letters. Spot Prices 》View SMM titanium spot prices 》Subscribe to view SMM metal spot historical prices In the spot market, according to SMM quotes, on March 24, the SMM rutile titanium dioxide price was 14,200-15,000 yuan/mt, with an average price of 14,600 yuan/mt. This average has remained at 14,600 yuan/mt since February 17. Compared to the average price of 14,500 yuan/mt on December 31, 2024, it increased by 100 yuan/mt. Production 》Click to view 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, with most titanium dioxide companies maintaining firm quotations. Moreover, the operating rates of previously reduced or suspended titanium dioxide producers were adjusted. As overseas market inventories gradually decreased, export demand is expected to continue being a highlight for titanium dioxide market demand. After multiple rounds of price adjustment letters, SMM predicts that domestic titanium dioxide production will 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 crucial factor supporting 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 16.75% higher than in 2022. Outlook Since entering 2025, high titanium concentrate prices and continuously rising sulphuric acid prices, along with persistently increasing raw material costs, coupled with low inventory levels and tight spot supply for some titanium dioxide producers, 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 these 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.