XiangyangDual Disruptions Shake the TiO₂ Market: Venator’s Administration & Lomon Xiangyang Shutdown
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Recent weeks have exposed vulnerabilities in the global titanium dioxide (TiO₂) supply chain. Two major incidents—Venator Materials entering administration in the UK, and a fatal accident at Lomon Billions’ Xiangyang site—are already pushing effects through pricing, supply risk, and trade strategies.
What’s Going On
- Venator Administration: Venator’s parent company has officially entered administration amid intensifying competition and rising costs. While its UK trading units continue to operate normally for now, the group is exploring restructuring and the sale of UK & other assets.
- Lomon Xiangyang Accident: On September 2, a fatal accident in the sulphuric acid line at LB Group’s Xiangyang facility caused 5 fatalities and 1 injury. Production there has been suspended. The site has around 150,000 t/y TiO₂ capacity, with another 200,000 t/y under construction. The company says other plants are unaffected and expects “no major operational impact,” but short-term supply tightness is already being felt.
Short-Term Impacts
- Supply Tightens: The shutdown at Xiangyang removes a chunk of sulphate‐route TiO₂ capacity from the market temporarily. Venator’s uncertainty adds to that, especially in UK/European supply.
- Price Pressure Upwards: TiO₂ prices are rising domestically in China. Sulphate‐route manufacturers are less able to absorb increasing costs—especially acid and energy—and are pushing for higher prices.
- Risk Premiums & Inventory Builds: Buyers are likely to increase safety stocks, place orders earlier, or switch suppliers and sources to hedge risk.
Medium-to-Long Term Effects
- Cost Inflation: Rising costs for sulphuric acid, raw materials, energy and regulatory compliance will eat into margins—and be passed downstream.
- Supplier Rebalancing: With Venator’s asset sales and possible permanent capacity reductions (especially in Europe), reliability and geographic diversification will matter more to buyers. Chinese producers may see increased demand from both local and global customers looking to shift sourcing.
- Regulatory / Safety Scrutiny: The accident at Xiangyang is likely to draw more attention to safety in sulphuric acid plants and production lines. Delays, stricter inspections, and higher compliance costs may follow.
* Trade Policy & Tariffs: Already, the market was contending with anti-dumping duties (e.g. EU actions on Chinese TiO₂ imports). Combined with these supply shocks, such policies may further distort pricing and trade flows.
Bottom Line
While immediate disruption is largely localized—China’s sulphate supply being hit, uncertainty around Venator’s UK/European operations—the ripple effects are global. Expect TiO₂ prices in many regions to rise, margin pressure on downstream industries (paints, plastics, coatings), and a sharper focus by buyers on supply resilience. Strategic sourcing, early contracts, and safety/regulation risk management will be more important than ever.
