Titanium dioxide (TiO2) prices have risen for seven consecutive months since July 2020, driven by supply cuts and strong overseas demand. Chinese producers, including industry leaders, have announced further price hikes for January 2021, benefiting from robust export markets and tight supply. This trend signals sustained cost pressures for global buyers of paints, coatings, and other TiO2-dependent products.
Market overview
Titanium dioxide, primarily used in paint manufacturing (60% of global consumption), also finds applications in cosmetics, plastics, paper, and inks. China is the world's largest producer and consumer of TiO2, accounting for approximately 42% of global capacity. Despite a late start, the Chinese industry has rapidly expanded to become the dominant global supplier.
Price trend and recent hikes
The current price rally in China's domestic TiO2 market has lasted seven months, with some factory-gate prices exceeding RMB 18,000 per ton. Data shows that average market prices surged 38.28% in the second half of 2020. Entering 2021, the market remains hot, with a new wave of price increases. Global leader Venator Materials announced a price hike effective January 1, 2021, prompting Chinese firms such as CNNC Titanium Dioxide, Lomon Billions, Anada, and Huiyun Titanium to follow suit. Domestic customers face increases of RMB 500 per ton, while international customers see a $100 per ton rise.
Supply-chain impact
Notably, CNNC Titanium Dioxide has raised prices seven times since July 2020, roughly once a month. Analysts at China International Capital Corporation (CICC) attribute the price surge to strong demand, disrupted overseas supply due to the pandemic, and robust export growth. Producers and distributors report tight spot inventories, keeping raw material ilmenite prices elevated.
What buyers should watch
Overseas buyers should monitor continued price momentum as Chinese producers maintain strong order books and export markets remain buoyant. The sustained price increases may impact procurement costs for paints, coatings, and other TiO2-using industries. Stock market performance reflects this optimism: on January 12, Anada hit the daily limit at RMB 8.92, Huiyun Titanium surged 20.01% to RMB 18.35, Jinpu Titanium rose over 7%, Kaisheng Technology gained over 6%, and CNNC Titanium Dioxide climbed 5.88%.
Source: Read the original report | Published: January 13, 2021