The titanium dioxide industry has started its first round of price increases this year

Recently, the titanium dioxide market has witnessed the first round of price hikes this year. 

On January 21st, Longi Group Co., Ltd. issued a letter announcing that starting from January 21, 2025, the selling prices of all types of titanium dioxide will be increased by 300 RMB per ton for domestic customers and by 50 US dollars per ton for international customers based on the original prices. 

On the same day, Guangdong Huiyun Titanium Industry Co., Ltd. also sent a letter stating that starting from January 21st, the sales price of various types of titanium dioxide would be increased by 300 yuan per ton, and for international customers, it would be raised by 50 US dollars per ton. 

On January 22nd, China Nuclear Hua Yuan Titanium Dioxide Co., Ltd. and Anhui Anada Titanium Industry Co., Ltd. successively sent letters to announce price hikes, raising the domestic price by 500 yuan per ton and the international price by 100 US dollars per ton. Yibin Tianyuan Materials Group Co., Ltd. raised the sales price of its chloride process titanium dioxide by 300 yuan per ton and the international powder sales price by 50 US dollars per ton. Meanwhile, Panzhihua Dongfang Titanium Industry Co., Ltd., Kunming Donghao Technology Development Co., Ltd. and Guangxi Jinmao Titanium Industry Co., Ltd. raised the domestic price for all types of customers by 300 yuan per ton and the international price by 50 US dollars per ton. 

As of 16:00 on January 23rd, at least 14 titanium dioxide producers have sent letters to announce price hikes. This price increase comes nearly 10 months after the last domestic price adjustment, marking the longest interval since the second half of 2020 and the smallest increase. Although it is late, it is not absent. With this, the titanium dioxide price market has stopped its decline and rebounded, and the red trend has begun. 

Yantai titanium industry analyst Yang Xun believes that the reasons for this small-scale price increase are as follows: First, since November 2024, the number of titanium dioxide producers in Southwest and East China that have limited production or shut down has increased, leading to a decline in operating rates, a slowdown in inventory growth, and low inventory levels among producers, resulting in a decrease in overall supply in the trading market. Second, channel and downstream inventories are low, and as the Spring Festival approaches, the sudden increase in inventory preparation and hoarding operations has caused supply tightness, and order backlogs and delayed shipments are very common. Third, raw material costs provide support, and the price level has been too low for a long time, making it difficult for many producers to survive, and they are eager for a price increase. The weak market has lasted for too long, and the expectation for a price increase is strong. Fourth, a few producers had relatively high inventory levels earlier, but the prices were too low. After operating for a period of time, they reset the prices to a reasonable level after receiving orders. Fifth, due to the shortage of intermediate ore, the titanium concentrate producers in Panxi also have a firm intention to hold prices, with recent increases of 20-30 yuan/ton and 30-80 yuan/ton respectively. Sixth, the timing and magnitude of the price increase announced by Longi Group are just right. As the Spring Festival approaches, a small price increase serves as a signal for the future market trend. Even if other producers find it difficult to actually increase prices, it can still convey a clear signal of a halt to the decline, and they will take more serious actions after the holiday. 

When it comes to the impact of the price increase notice on the industry, Yang Xun pointed out that the price increase notice from Longi Group has a certain driving effect and influence. It is expected that other producers will follow suit and announce price hikes, with an estimated increase of around 300 yuan per ton. For users and distributors who have not yet stocked up, it increases their expectations for placing orders and psychologically boosts their purchasing desire. Based on past experience, the price increase of titanium dioxide is expected to continue for a period of time. This round of price hikes may last for at least 2 to 3 rounds, which will have a good boosting effect on the titanium dioxide price market. At the same time, for producers with new capacity planned for 2025, it increases their optimistic expectations for the market. 

Qi Yu, a titanium analyst from the Industrial Big Data Department of Tu Duoduo, analyzed that the titanium dioxide market saw a price increase in January, with the market experiencing a decline followed by a rise. At the beginning of the month, the listed price of a major enterprise was reduced by 200 yuan per ton. Due to the increased inventory preparations by downstream distributors, traders, and other enterprises, the market gradually reduced its inventory. The spot supply of sulfuric acid titanium dioxide was tight, and some enterprises in the market cancelled previous discounts, with factories mostly controlling order intake. In January, the price of raw titanium ore increased, while the price of sulfuric acid in some regions dropped by about 50 yuan per ton. However, the overall cost of titanium dioxide remained high, with prices hovering around the cost line. As the Spring Festival holiday approaches, about twenty titanium dioxide enterprises are scheduled for routine maintenance from January to February, and production is expected to decline compared to December 2024. Currently, the tax-inclusive ex-factory price of rutile titanium dioxide is between 13,800 and 14,800 yuan per ton, while that of anatase titanium dioxide is between 12,400 and 13,200 yuan per ton. 

Qi Yu pointed out that China's titanium dioxide export data is good. In December 2024, the export volume of titanium dioxide was 158,400 tons, an increase of 10.53% compared with the same period of the previous year. The total export volume of titanium dioxide last year was 1.9017 million tons, an increase of 15.84% year-on-year. Longqi issued a letter to raise the sales price of titanium dioxide by 300 yuan per ton. The main reason is the significant cost pressure. In addition, the inventory of titanium dioxide manufacturers before the festival was basically low. The market expects that more enterprises will follow suit and issue letters. The market as a whole is expected to be optimistic after the festival, and the transaction prices of some enterprises may increase slightly.