Surging Raw Material Costs Squeeze Profits; Titanium Dioxide Industry Sees Another Wave of Collective Price Hikes

I. Review of Price Hikes This Year and Core Drivers of the Current Round

The pace of titanium dioxide price increases in the first half of 2026 has been rapid, with the sector undergoing four successive rounds of hikes. The market initiated the first round in March, followed by two additional rounds within the same month, resulting in a cumulative monthly increase of 2,000 RMB/ton. Driven by continuously rising raw material costs, a fourth round of increases occurred in April, steadily pushing price levels upward; all four rounds were driven by cost pressures and export demand.

Cost pressure remains the primary driver behind this fifth round of price increases. Sulfur prices have surged by over 90% this year, with spot prices approaching 10,000 RMB/ton; this has fueled a 213% year-on-year rise in sulfuric acid prices. Producing one ton of titanium dioxide via the sulfuric acid process requires 3 to 4 tons of sulfuric acid, meaning the rise in raw material costs immediately adds 3,000 to RMB 5,000 to the production cost per ton. Rising raw material costs continue to compress corporate profits, with product quotes in some regions nearing the cost line. Concurrently, a significant influx of overseas orders and a strong export backlog have bolstered sector confidence in maintaining and raising prices; over a dozen companies have followed suit, solidifying the fifth round of price hikes across the market. While the price of ferrous sulfate dipped slightly this month, offering minor relief regarding costs, it was insufficient to reverse the overall direction of high production costs.

II. Titanium Dioxide Spot Quotes as of June 11

As of June 11, the benchmark price to titanium dioxide (via SunSirs) stood at 16,720 RMB/ton. Prices have remained stable recently, aligning with the market pricing structure established following this latest round of increases. Market quotations vary significantly by product category: the prevailing ex-factory prices (inclusive of tax) to sulfate-process rutile titanium dioxide range from 15,800 to 17,300 RMB/ton, while sulfate-process anatase titanium dioxide is quoted at 14,500–15,000 RMB/ton. High-end chloride-process rutile items command higher prices, with general-purpose grades typically priced between 16,500 and 18,000 RMB/ton. Price strategies differ markedly among companies: leading firms maintain firm quotes backed by robust export orders; small and medium-sized manufacturers focused on the domestic market offer slight price concessions to secure orders; and mid-tier producers largely implement a "wait-and-see" approach, holding prices steady.

III. International Raw Materials and Product Export Trends

The international raw material market is influenced by the situation in the Middle East and global logistics constraints; prices to chemicals such as sulfur and sulfuric acid remain high, driving up the landed cost of overseas raw materials. Domestic and international raw material costs are interlinked, meaning overseas titanium dioxide producers face similar cost pressures.

Exports have have become a crucial buffer to the market; cumulative domestic titanium dioxide exports rose by 12.53% year-on-year from January to April, with export dependency exceeding 30%. Product mix continues to enhance, with exports of high-end chloride-process titanium dioxide surging by 39.63%—far outpacing traditional sulfate-process items—marking a shift in the sector's export focus from cost advantages to the competitiveness of high-end items. Currently, leading companies derive over 60% of their sales from overseas markets and hold ample prolonged orders (spanning 3–6 months). However, the export market harbors risks; current overseas sales are characterized by "rising volumes however falling prices." Furthermore, trade barriers—such as EU anti-dumping measures and Indian trade investigations—are proliferating, creating uncertainty regarding the prolonged model of relying on exports to absorb production capacity.