Spot Supply Shortage: Multiple Titanium Dioxide Enterprises Initiate the First Round of Price Increases for 2025 [SMM Analysis]

SMM January 22 News:

On January 22, several titanium dioxide companies, including CNNC Hua Yuan Titanium Dioxide, Jinpu Titanium, and Annada, successively issued price adjustment notices. This follows the price adjustment notice released by LB Group on January 21. From the notices issued by these companies, it can be observed that in this round of price adjustments, each company made adjustments based on market conditions and their own circumstances, without the previously common phenomenon of uniform price increases. According to SMM sources in the market, the recent increase in titanium dioxide prices is mainly due to the tight supply in the spot market after production control during maintenance and pre-holiday stockpiling. This change in the supply-demand relationship has prompted several titanium dioxide companies to issue price adjustment notices.

CNNC Hua Yuan Titanium Dioxide and Other Titanium Dioxide Companies Issue Price Adjustment Notices

The price adjustment notice released by LB Group on January 21 stated: Based on the current market situation, LB Group has decided to adjust product prices as follows: Starting from January 21, 2025, the selling price of all types of titanium dioxide will be increased by 300 yuan/mt for domestic customers and $50/mt for international customers.

The price adjustment notice issued by CNNC Hua Yuan Titanium Dioxide on January 22 stated: Based on the current titanium dioxide market situation and after research by the company's pricing committee, starting from January 22, 2025, the selling price of all types of titanium dioxide will be adjusted as follows: Domestic customers: an increase of 500 yuan/mt. International customers: an increase of $100/mt. The price adjustment period is from January 22, 2025, until the next price adjustment notice takes effect.

Jinpu Titanium stated: Considering the demand situation in the domestic and international titanium dioxide markets and the company's actual conditions, after research by the company's pricing committee, starting from January 22, 2024, the selling price of anatase titanium dioxide will be increased by 1,000 yuan/mt for domestic customers and $130/mt for international customers; the selling price of rutile titanium dioxide will be increased by 800 yuan/mt for domestic customers and $100/mt for international customers. The price adjustment period is from January 22, 2024, until the next price adjustment takes effect. The price adjustment includes the following subsidiaries: Nanjing Titanium Dioxide Chemical Co., Ltd. and Xuzhou Titanium Dioxide Chemical Co., Ltd.

Annada stated: Based on the current market situation and after research by the company, starting from January 22, 2025, the base price for domestic sales of rutile and anatase titanium dioxide will be increased by 500 yuan/mt, and the base price for foreign trade sales will be increased by $100/mt.

Market Outlook

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In 2024, with the successive commissioning of new capacity in the titanium dioxide industry, although downstream demand for titanium dioxide remained robust, the increase in new capacity outpaced the growth in demand, resulting in an overall oversupply in the titanium dioxide market. The price center of titanium dioxide also shifted downward. Reviewing the historical prices of rutile titanium dioxide, the average price on December 29, 2023, was 15,850 yuan/mt, while the average price on December 31, 2024, was 14,500 yuan/mt, representing a year-on-year average price decline of 8.52% in 2024.

As the issue of "price inversion" among companies became increasingly evident, many companies faced profit losses in their operations. Several titanium dioxide companies successively carried out maintenance and capacity adjustments. With the continued deepening of production cuts by titanium dioxide companies, coupled with small-scale pre-holiday restocking by downstream titanium dioxide enterprises, the spot supply of titanium dioxide became tight, leading to a change in the supply-demand relationship. Several titanium dioxide companies also successively issued price adjustment notices. Whether titanium dioxide prices can rise as expected remains to be seen, and SMM will continue to monitor the implementation of subsequent price adjustment notices by titanium dioxide companies.