SMM, January 27: Due to nearly 40% of titanium dioxide producers being in a state of production cuts or shutdowns, and the existing titanium dioxide producers generally not operating at full capacity, the market widely expects stockpiling in overseas markets before the holiday. These factors have led to tight supply for some titanium dioxide producers, creating a shortage in the spot market. LB Group, CNNC Hua Yuan Titanium Dioxide, Jinpu Titanium, and Annada, among other titanium dioxide producers, have successively issued price adjustment notices. Influenced by this news, the titanium dioxide concept rose during the morning session on January 27. As of 10:40 a.m. on January 27, the titanium dioxide concept was up by 1.27%. In terms of individual stocks, Lubei Chemical, LB Group, and Annada all rose by over 2%, while Huiyun Titanium, Kuncai Technology, and Tianyuan Group also saw increases.
The average price of rutile titanium dioxide has remained stable at 14,500 yuan/mt for over a month.
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Spot market: According to SMM quotations, on January 26, the average price of SMM rutile titanium dioxide was reported at 14,500 yuan/mt, unchanged from the average price on December 24, 2024. From its price trend, the average price of SMM rutile titanium dioxide has remained stable at 14,500 yuan/mt for over a month.
Reviewing 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 an annual average price decline of 8.52% in 2024. As the "inverted pricing" of enterprises became increasingly evident, many companies faced profit losses, prompting several titanium dioxide producers to carry out maintenance and adjust capacity.
Outlook
Since the beginning of 2025, in early January, due to a significant rise in the costs of raw materials such as sulphuric acid and titanium concentrate, the policy prices of leading titanium dioxide enterprises have remained stable this month, and most titanium dioxide producers have maintained firm quotations. Additionally, nearly 40% of enterprises are in a state of production cuts or shutdowns, and the existing producers generally do not operate at full capacity. The market widely expects stockpiling in overseas markets before the holiday. As the overseas market enters the pre-holiday stockpiling period, the export market is expected to mitigate the impact of declining domestic demand. It is reported that some titanium dioxide producers are experiencing tight supply and have issued price adjustment notices. By month-end, titanium dioxide producers are expected to raise domestic prices by 300-500 yuan/mt. However, considering the currently sluggish market demand, whether the price adjustments can be implemented remains to be tested by the market. Titanium dioxide prices will continue to be negotiated on a case-by-case basis, with the overall market showing a stable yet slightly weak trend.
