According to the latest data from SMM, Chinese titanium dioxide prices in June have fallen to their lowest levels in three years. The current domestic market quotations are as follows: anatase titanium dioxide at 12,000-12,600 CNY/mt, rutile titanium dioxide at 13,000-14,300 CNY/mt, and chloride-process titanium dioxide at 16,000-17,000 CNY/mt.
Chinese titanium dioxide market currently exhibits two distinct characteristics. First, price disparities have widened significantly, driven by natural price differences between product grades and the ability of leading domestic manufacturers to maintain higher prices due to superior product quality and stable customer bases. In contrast, small and medium-sized Chinese producers are forced to lower prices to survive, though their transaction volumes remain less than one-tenth of those of larger firms. Second, prices have been on a continuous downward trend since March with no signs of bottoming out. Industry discussions reveal that weak domestic demand coupled with export barriers have led to production cuts among smaller Chinese players and inventory buildup at major domestic manufacturers, casting uncertainty over overseas market prospects.
Export data shows a sharp decline in titanium dioxide shipments since April, hitting a low in May. Key challenges include:
- India: Since February, anti-dumping duties on Chinese titanium dioxide and volatile shipping costs have jeopardized a market that once accounted for 20% of exports.
- Europe: Temporary anti-dumping surcharges imposed since September 2024 have suppressed demand, while local chloride-process producers dominate the market, further squeezing out Chinese products.
- Middle East: Escalating Iran-Israel tensions have disrupted shipping, halting orders from key clients in Turkey and Iran.
The unpredictable global trade environment has left manufacturers struggling, with both domestic and international demand in decline.
Product-Specific Challenges
- Anatase: Priced lower and uniquely produced in China, it remains competitive globally despite its niche use in coatings.
- Rutile: As China’s primary product, it faces fierce competition. Exports, led by major players, are priced slightly lower in USD terms, reflecting both exchange rate expectations and trade concessions to counter anti-dumping policies. Some smaller producers have cut or halted output to avoid inventory pressure.
- Chloride-Process: More vulnerable due to technological and quality gaps with other competitors. While used widely in industrial coatings, Chinese producers rely mainly on maintaining relationships with long-term clients while seeking new partnerships.
Outlook
International market challenges persist, requiring domestic firms and downstream buyers to negotiate new cooperation models. Although production cuts are gradually easing oversupply, inventory digestion will take time. Domestically, buyers await large orders to capitalize on current low prices. Prices are expected to remain weak but stable in the near term.
