Another increase of 1,000 yuan! Titanium dioxide prices have risen three consecutive times within a month.

(Source: Zhonghua Xinnet)

In the past month, the price of titanium dioxide has seen a “three consecutive increases.” On March 24, Longbai Group announced an adjustment to the sales price of titanium dioxide products, raising the domestic market by 1,000 yuan/ton; the international market price was increased by 150 USD/ton based on the current price. On the same day, companies such as Guangdong Huiyun Titanium Industry, Tianneng Chemical Co., Ltd., Shengweifuqian Chemical, and Zhengtai New Materials issued letters to raise prices by the same amount, initiating this year’s third collective price increase wave.

As of March 25, 25 companies have issued letters to adjust prices intensively, with a general market increase of 1,000 yuan/ton, further solidifying this collective announcement model.

Recently, the escalating situation in the Middle East has significantly increased uncertainty in shipping through the Strait of Hormuz. As a core channel for global sulfur trade, this has directly led to a tightening of global sulfur supplies, driving international spot prices sharply higher. Meanwhile, sulfuric acid, as the main downstream product of sulfur, has also seen its price rise in tandem with raw material costs, resulting in a tight balance between supply and demand in the domestic sulfuric acid market. In some regions, sulfuric acid production has been limited due to sulfur supply shortages, further exacerbating market supply pressures, with prices continuously reaching new highs.

According to incomplete statistics from Tuduo, the cumulative increase in the domestic sulfuric acid market since 2026 has reached 300-600 yuan/ton, with the current mainstream transaction price for smelting acid mostly between 1,500-1,600 yuan/ton. The increase for sulfuric acid and ore acid is even more pronounced, with some regions seeing increases exceeding 700 yuan/ton, leading to a sustained tight supply of market goods. This week, the price of sulfur at ports once broke through 5,700 yuan/ton. Although there was a slight correction due to fluctuating news, shipping through the Strait of Hormuz has not fully resumed, and supply-side support remains solid, keeping prices at high levels. If geopolitical situations continue to fluctuate, sulfur prices are expected to exhibit significant volatility.

The sharp rise in sulfur prices is quickly being transmitted downstream to the chemical industry, and titanium dioxide, as one of the core downstream products, has seen a substantial increase in production costs, leading to rapid price hikes that exceed reasonable industry expectations. Since March, many titanium dioxide companies have issued price increase letters in quick succession. Among them, Longbai Group raised prices three times on March 2, March 16, and March 24, with single increases of 500 yuan/ton, 500 yuan/ton, and 1,000 yuan/ton respectively, for a total increase of 2,000 yuan/ton, which is rare in the past twenty years.

The production of titanium dioxide consumes a significant amount of sulfuric acid, and the continuous rise in sulfuric acid prices directly drives up production costs. According to industry estimates, each ton of titanium dioxide consumes approximately 3-4 tons of sulfuric acid. If the sulfuric acid price rises by 500 yuan/ton, it corresponds to an increase in sulfuric acid costs of 1,500-2,000 yuan/ton for titanium dioxide. Based on the sulfur usage ratio, about 1.3-1.5 tons are consumed to produce one ton; for example, the price of sulfur at Zhenjiang Port increased from 4,100 yuan/ton on January 4, 2026, to 5,500 yuan/ton on March 25, which corresponds to an increase in titanium dioxide production costs of 1,800-2,100 yuan. Against the backdrop of sharply rising prices for sulfur and sulfuric acid, the cost pressure on titanium dioxide companies has surged.

This price increase is primarily the result of the combined effects of cost pressure and market demand. Yu Jie, Secretary-General of the Titanium Dioxide Division of the National Chemical Industry Productivity Promotion Center, analyzed that the first factor is the significant rise in upstream sulfur and sulfuric acid prices, leading to considerable cost pressure for sulfuric acid titanium dioxide manufacturers. Secondly, in the first two months of this year, China’s titanium dioxide exports were strong, with a year-on-year increase of 21.8%, resulting in a trade surplus of 213.62 billion USD. The semiconductor industry chain, integrated circuits, and consumer products like clothing, footwear, luggage, home appliances, and electromechanical products related to titanium dioxide have seen strong exports. Automotive exports have also shown significant growth, especially in the case of new energy vehicles, which continue to maintain high growth momentum. The aforementioned industries consume large amounts of titanium dioxide in their raw materials, which has resulted in titanium dioxide factories maintaining low inventory levels.

Yang Xun, an analyst in the titanium dioxide industry, also believes that the international situation has led to tight energy supplies and insufficient supplies from overseas producers, causing more overseas demand to flow to China, where titanium dioxide manufacturers have seen an improvement in overseas orders compared to earlier, with some producers already securing orders into May and June, reducing inventory levels and sharply increasing production pressure. The recent two rounds of price increases have shown a relatively quick acceptance by customers.

Qi Yu, an analyst in the Titanium Department of Tuduo’s Industrial Big Data Division, pointed out that the strong upward movement in titanium dioxide prices is a direct response to the significant rise in upstream raw material costs and reflects the industry’s forward-looking anticipation of future cost pressures, while also indicating that downstream market demand may be somewhat overstretched. Currently, both end-users and distributors have completed phase-specific stocking, while factories are facing significant price differences due to rapidly rising costs compared to previous order prices, squeezing profit margins significantly.

In April, whether the downstream industries such as coatings and plastics can sustain the price increases is uncertain. Yu Jie believes that in the short term, this round of price increases poses a dual pressure of surging costs and market acceptance for small and medium-sized coating enterprises with weaker risk resistance, which may accelerate the industry’s reshuffling pace. This might also be an opportunity for transformation in China’s coating industry. It will force companies to move away from low-level price wars and focus on quality upgrades, technological innovation, and service optimization, pushing the industry toward a trajectory of long-term healthy development.

Currently, the titanium dioxide market has entered a dilemma of quoting and shipping, with some companies quoting prices above 15,000 yuan/ton, while others remain under a pause on quoting. The subsequent prices of sulfur and sulfuric acid still carry considerable uncertainty; if the geopolitical situation escalates again, raw material prices have the potential for rapid recovery or even a new high; if expectations for easing continue to develop, the market is likely to enter a phase of high-level volatility and consolidation.

Yang Xun believes that the domestic titanium dioxide market will remain firm in the future. The titanium dioxide prices in March this year are destined to be recorded in history, as three consecutive increases in a single month are indeed rare. Overall overseas order volumes from the production side have improved, with supply priorities also increasing, and domestic trade prices have risen to varying degrees, but there is a general hope to execute at old prices, which is often quite challenging. From the overall status of orders on hand and in negotiation from the supply side, the price market in April still rules out the possibility of a price drop, and based on the current inventory status of various producers, the likelihood of continued price increases is significantly rising. For downstream users, it is time to formally adopt an upward procurement strategy. The current phase is in parallel with order taking and goods delivery, while later, there may be more stages of reduced order taking and increased delivery, with the demand market experiencing a certain degree of overstretch.

Qi Yu stated that overall, the likelihood of a significant drop in titanium dioxide costs in the short term is low, and high cost pressures are likely to persist, coupled with expectations of a contraction in market supply, leading to titanium dioxide prices expected to maintain in the range of 15,000–16,000 yuan/ton. However, entering the second quarter, downstream demand will gradually enter the traditional off-season, and it will take time to digest social inventory, which may reveal some shipment pressure in the industry. Future attention should be focused on the evolution of the geopolitical situation and the progress of the recovery of key transportation channels.

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