Titanium Dioxide Prices Stabilize with Potential for Increase, Sponge Titanium Remains Stable at Low Levels [SMM Monthly Titanium Data]

Titanium Dioxide

According to SMM data, China's titanium dioxide production in August 2025 decreased by 2.10% MoM.

In this month, the titanium dioxide market continued with its production cut strategy. After mid-August, nearly 30 titanium dioxide producers collectively issued price adjustment letters, raising prices for all models of titanium dioxide, with an average increase of 500 yuan/mt for domestic prices and $50/mt for US dollar prices. Currently, the effects of previous production cuts have gradually become evident, with inventories at various producers being effectively cleared. Coupled with a steady recovery in downstream demand, the previous downward trend in the titanium dioxide market has successfully been halted. Looking ahead to September, as market demand gradually returns, it is expected that titanium dioxide prices will enter a steady upward channel. From the current market performance, the price of sulphuric acid process titanium dioxide has already slightly increased by about 200 yuan/mt; while the price of chloride process titanium dioxide remains in a low consolidation phase due to unresolved inventory pressure.

Sponge Titanium

According to SMM data, China's sponge titanium production in August 2025 decreased by 9.39% MoM.

In this month's sponge titanium market, some enterprises actively responded to the national "anti-rat race" policies, implementing production cut measures with plans to reduce production by 30%, aiming to proactively control market capacity. Another significant reason is that after a substantial expansion of sponge titanium capacity earlier, downstream demand could not absorb the surplus supply, leading to a weak downward trend in market prices. According to SMM survey data, the actual reduction in sponge titanium production this month was slightly lower than the announced plan. This phenomenon mainly stems from the multifaceted cost adjustments involved in production cuts, which require a certain cycle for implementation and cannot be fully realized quickly. However, it is worth noting that the downward trend in sponge titanium prices has gradually eased this month. Considering the current market situation, it is expected that sponge titanium prices will remain at a low level in September.