Market Report
1. Titanium Dioxide (TiO2) Market Analysis
- In the first half of 2025, China’s titanium dioxide (TiO2) market was significantly impacted by macroeconomic pressures, including property market adjustments and external trade frictions, leading to overall weak demand.
- TiO2 prices experienced a two-stage trend: an initial increase in Q1 (Jan–Mar) due to high ilmenite and sulfuric acid costs and reduced output during the Lunar New Year; followed by a sharp decline from April to June due to falling demand, high inventories, and widespread production cuts among top manufacturers .
- As of mid-June, sulfuric acid process TiO2 prices fell by approximately $70–$98 per ton from early 2025 levels, and by $140–$168 per ton from the March peak. Chloride process TiO2 prices dropped by around $140–$210 per ton since January.
2. Titanium Dioxide Pigment Market Trends
- Since April, prices have declined amid weak domestic demand, export pressure from anti-dumping investigations (EU, India, Brazil), and excess inventories. About 20 manufacturers have reduced or halted production.
- By early June, LB Group led a major price reduction of up to $196 per ton, followed by other players, narrowing the price gap between sulfate and chloride grades. Current prices are near production cost levels, with some producers facing slight losses.
- Sulfuric acid prices were a key driver of earlier price increases, but cost pressures remain despite the recent TiO2 market weakness, limiting the space for further price cuts.
3. Market Forecast
- With demand still weak, TiO2 prices are likely to remain under downward pressure through the rest of the off-season.
- Production reductions and destocking efforts may help stabilize the market, but a rebound hinges on stronger demand during the traditional September–October peak season.
- New capacity additions have not materialized in H1 2025, but oversupply risks remain if demand fails to pick up.
